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Warehouse Operator Bond

Dallas warehouse operator bond

USDA and public warehouse surety for storage operators

Public warehouse operators storing commodities or commercial goods file warehouse operator surety so depositors get paid or delivered when the warehouse fails to perform.

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Overview

What is this bond?

A warehouse operator bond is the surety a licensed public warehouse files so depositors of stored commodities or goods are protected if the warehouse cannot redeliver, pay, or honor warehouse receipts. Federal filings run under the United States Warehouse Act; some states also require a public-warehouse bond for commercial storage.

Key Provisions
  • Guarantees compliance with Confirm applicable Texas statutes with the obligee
  • Protects the obligee named on the Texas bond form
  • Remains subject to the penal sum and bond conditions
Surety Obligation Overview

What Does This Bond Guarantee?

The surety bond guarantees that the principal will perform the duties required under Confirm applicable Texas statutes with the obligee up to the penal sum.

Principal
The party required to obtain the bond and perform the underlying obligation.
Obligee
United States — USDA or the warehouse program named on the form
Surety
The company issuing the bond and guaranteeing the obligation to the obligee.

When a claim may arise

A claim may arise if the principal fails to comply with the bonded Texas obligation or causes covered loss to the obligee or protected parties.

If a claim is valid

If a claim is valid, the surety may pay up to the bond penalty according to the bond terms; the principal remains liable to reimburse the surety.

Scope of the Obligation
  • Comply with Confirm applicable Texas statutes with the obligee
  • Satisfy Texas obligee named on the form filing conditions
  • Maintain the bond for the required term
Bond terms

Bond summary

Amount, premium, term, and the authority that requires this filing.

Eligibility

Who Needs This Bond?

Warehouse operators, grain elevators, and public storage facilities that issue warehouse receipts or hold a USDA or state warehouse license need this bond.

Who Is Required to File
  • USDA-licensed warehouse operators under the United States Warehouse Act
  • State-licensed public warehouses storing grain or commercial goods
  • 3PL and cold-storage operators that issue warehouse receipts
  • Commodity elevators posting capacity-based warehouse surety
Requirements

What You Need to Apply

Confirm the warehouse license path (USDA or state), then file the matching continuous warehouse bond in the amount set by capacity or the program schedule.

Required Documentation
  1. Identify USDA FSA or state warehouse license class
  2. Confirm penal sum from the capacity schedule — do not guess an amount
  3. Apply using the Warehouse Propeller class
  4. File the issued bond with the warehouse regulator named on the form
  5. Keep the bond continuous while receipts are outstanding
Filing

How this filing works

  1. 01

    Confirm the warehouse license class

    Match USDA warehouse or the state public-warehouse program that requires surety for your facility.

  2. 02

    Apply for the bond

    Use Apply on this page for the Warehouse Operator Propeller class. Underwriting sets the penal sum from your licensed capacity.

  3. 03

    File with the warehouse regulator

    Deliver the issued bond to USDA FSA or the state warehouse board named on the form. Keep it continuous while you store goods for others.

FAQ

Frequently Asked Questions

Is this the same as a CBP bonded warehouse bond?

No. CBP Activity 2 / bonded-warehouse customs filings sit on the U.S. customs bond. This page is USDA and public-warehouse operator surety.

How is the amount set?

USDA and state warehouse programs set the penal sum from licensed storage capacity or a published schedule. Confirm the current figure with the regulator before you apply.

Who is the obligee?

The United States (USDA) or the state warehouse program named on the bond form — the party that holds the warehouse license.

Do 3PL warehouses need this bond?

If you operate a public warehouse, issue warehouse receipts, or hold a USDA or state warehouse license, yes. Private storage with no receipts may not.

Does this replace warehouse legal liability insurance?

No. The bond is a licensing guarantee for depositors and the regulator. Warehouse legal liability and cargo insurance are separate.

Authority Resources

U.S. Department of Agriculture (USDA) — Farm Service Agency warehouse program

fsa.usda.gov

Also need coverage?

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Need more than a bond? Through the same agency desk we can discuss commercial coverage for the whole business.

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