Florida Public Sale of Thoroughbred Horses Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Public Sale of Florida Thoroughbred Horses bond.
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: Between $10,000 to $100,000 (more on this later)
- Who Needs it: All organizations operating in Florida that sell thoroughbred horses to the public
- Purpose: To ensure buyers are compensated for damages if the sales organization fails to comply with licensing law
- Who Regulates Public Sellers of Thoroughbred Horses in Florida: The Florida Department of Agriculture and Consumer Services
Background
Florida Statute 535.01 requires public sellers of thoroughbred horses operating in the state to obtain a license from the Department of Agriculture and Consumer Services. The Florida legislature enacted the licensing laws and regulations to ensure that sellers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, public sellers of thoroughbred horses must purchase and maintain a surety bond to be eligible for licensure.
What is the Purpose of the Florida Public Sale of Thoroughbred Horses Bond?
Florida requires public sellers of thoroughbred horses to purchase a surety bond as part of the application process to obtain a business license. The bond ensures that buyers will receive compensation for financial harm if the seller fails to comply with the regulations set forth in Florida Administrative Code 5H-15.003. Specifically, the bond protects buyers if the seller engages in unfair or deceptive trade practices, does not maintain accurate records, or fails to pay all fines and fees. In short, the bond is a type of insurance that protects buyers if the seller violates the terms of their license.
How Can an Insurance Agent Obtain a Florida Public Sale of Thoroughbred Horses Bond?
BondExchange makes obtaining a Florida Public Sale of Thoroughbred Horses surety bond easy. Simply login to your account and use our keyword search to find the “Thoroughbred Horses” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.
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How is the Bond Amount Determined?
Florida Administrative Code 5H.15.003 dictates that the bond amount must be based on the class of sale to be held. Sales of thoroughbred horses in Florida are classified based on the minimum value of each horse offered for sale, as outlined below:
- Class A Sale – Each horse has a minimum value of $7,500
- Class B Sale – Each horse has a minimum value of $2,500
- Class C Sale – There is no minimum value for the horses entered for sale
It is the seller’s responsibility to determine the minimum value of each horse offered for sale.
The following table illustrates the required bond amounts for the different classes of thoroughbred horse sales in Florida:
| Class of Sale | Bond Amount |
|---|---|
| Class A Sale | $100,000 |
| Class B Sale | $50,000 |
| Class C Sale | $10,000 |
Is a Credit Check Required for the Florida Public Sale of Thoroughbred Horses Bond?
Surety companies will run a credit check on the seller to determine eligibility and pricing for the Florida Public Sale of Thoroughbred Horses bond. Sellers with excellent credit and work experience can expect to receive the best rates. Sellers with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the seller’s credit.
How Much Does the Florida Public Sale of Thoroughbred Horses Bond Cost?
The Florida Public Sale of Thoroughbred Horses bond can cost anywhere between 1% to 12.5% of the bond amount per year. Insurance companies determine the rate based on a number of factors including your customer’s credit score and years of experience. The chart below offers a quick reference for the approximate bond cost of the $50,000 bond requirement.
$50,000 Bond Cost
| Credit Score | Bond Cost (1 year) | Bond Cost (1 month) |
|---|---|---|
| 720+ | $500 | $50 |
| 680 – 719 | $750 | $75 |
| 650 – 679 | $1,000 | $100 |
| 600 – 649 | $2,000 | $200 |
| 550 – 599 | $3,750 | $38 |
| 500 – 549 | $6,250 | $63 |
*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.
Who is Required to Purchase the Florida Public Sale of Thoroughbred Horses Bond?
Florida requires public sellers of thoroughbred horses to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Florida Statute 535.01, a public seller of thoroughbred horses is any person conducting or offering the sale of thoroughbred horses to the public.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Public Sellers of Thoroughbred Horses Apply for a License in Florida?
Public sellers of thoroughbred horses in Florida must navigate several steps to obtain a license. Below are the general guidelines, but applicants should contact the Department of Agriculture and Consumer Services for details on the process.
License Period – All Florida Public Sale of Thoroughbred Horse Licenses expire after the sale is completed.
Step 1 – Determine the Minimum Value of Horses
Public sellers of thoroughbred horses must estimate the minimum value of each horse that will be sold. This valuation will determine the seller’s required surety bond amount.
Step 2 – Purchase a Surety Bond
Public sellers of thoroughbred horses must purchase and maintain a surety bond (limits outlined above).
Step 3 – Complete the Application
Sellers must submit an application to the Department of Agriculture and Consumer Services at the following address:
FDACS
P.O. Box 6700
Tallahassee, Florida 32314-6700
Applicants must complete the form in its entirety, and submit a $300 license fee with the application. Applications must be submitted at least two months prior to the date of the sale.
Do Public Sellers of Thoroughbred Horses Need to Renew Their Licenses?
No, as all Florida Public Sale of Thoroughbred Horse Licenses expire after the sale is conducted. Sellers must obtain a separate license for each sale they plan to conduct. Sellers are not required to obtain a separate bond for each sale. Instead, sellers must submit riders to their existing bond for each sale they hold.
What are the Insurance Requirements for Public Sellers of Thoroughbred Horses in Florida?
Florida does not require public sellers of thoroughbred horses to purchase any form of liability insurance as a prerequisite to obtaining a license. Public sellers of thoroughbred horses must purchase and maintain a surety bond (limits outlined above).
How Do Florida Public Sellers of Thoroughbred Horses File Their Bonds?
Sellers should submit their completed bond forms, including the power of attorney, to the Department of Agriculture and Consumer Services at the following address:
FDACS
P.O. Box 6700
Tallahassee, Florida 32314-6700
The bond requires signatures from both the surety company that issues the bond and the applicant. The surety company should include the following information on the bond form:
- Legal name and address of the entity/individual(s) buying the bond
- Surety company’s name, address and phone number
- Bond amount
- Date of the sale
- Date the bond goes into effect
- Date the bond is signed
What Can Florida Public Sellers of Thoroughbred Horses do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, public sellers of thoroughbred horses in Florida must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:
- Do not engage in any unfair or deceptive trade practices
- Maintain an accurate record of all transactions
- Pay all required taxes, fines, and fees
What Other Insurance Products Can Agents Offer Thoroughbred Horse Sellers in Florida?
Florida does not require public sellers of thoroughbred horses to purchase any form of liability insurance as a prerequisite to obtaining a business license. However, most reputable sellers will obtain this insurance anyway. Bonds are our only business at BondExchange, so we do not issue liability insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Florida Public Sale of Thoroughbred Horses Customers?
Florida unfortunately does not provide a public database of active public sellers of thoroughbred horses in the state. We suggest contacting the Department of Agriculture and Consumer Services to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.