LP Gas Indemnity - Category 1 ($1,000,000) Bond - Statewide in Florida

Brief Summary

A Category I LP gas dealer in Florida has a choice the license application does not make obvious. Section 527.04 accepts either a $1 million primary liability policy or a $1 million indemnity bond payable to the Commissioner of Agriculture. If you take the bond route, it is filed on the department's own form, FDACS-03587, and the license is issued once the department has satisfactory proof.

Florida will not issue a Category I liquefied petroleum gas dealer license until the applicant proves at least $1 million of bodily injury and property damage liability insurance or delivers a $1 million bond payable to the Commissioner of Agriculture, written by a surety authorized in Florida. The same $1 million figure applies to Category II dispensers, Category V installers and Category VI miscellaneous operators. Category III cylinder exchange operators post $300,000 instead, and Category IV appliance and equipment dealers are exempt.

We can help with all Florida bonds!

How to Apply for a LP Gas Indemnity - Category 1 ($1,000,000) Bond:

• Decide between the $1 million primary liability policy and the $1 million bond. Section 527.04(1) accepts either one.
• Complete FDACS-03578, the LP Gas Category I Dealer License Application.
• Have the bond written on FDACS-03587, LP Gas Indemnity Bond, with the business as principal.
• Make the bond payable to the Commissioner of Agriculture in the amount of $1 million.
• Submit the executed bond with the application and the $400 annual license fee, or the fee for the renewal period you elect.
• Keep the bond in force for every licensed year, since each renewal must meet the same requirements as an annual license.

Detailed Information About the Florida LP Gas Indemnity - Category 1 ($1,000,000) Bond:

A bond in place of the liability policy

Most applicants assume the bond is an extra layer on top of insurance. It is not. Florida Statutes 527.04(1) requires proof of a primary bodily injury and property damage liability policy of not less than $1 million before a license is issued, and then says that in lieu of an insurance policy the applicant may deliver a good and sufficient bond in the amount of $1 million, payable to the Commissioner of Agriculture, with a surety company authorized to do business in Florida.

Who the bond answers to

The bond is conditioned on the licensee's compliance with Chapter 527 and the rules of the Department of Agriculture and Consumer Services. It must indemnify and hold harmless all persons from loss or damage caused by the licensee's failure to comply. Anyone with a cause of action on the bond may sue the principal and the surety, and a copy of the bond certified by the department is received in evidence in Florida courts without further proof.

Which licenses carry the $1 million figure

Section 527.04(1) covers every license category except two. Category I dealers, Category II dispensers, Category V installers and Category VI miscellaneous operators all need $1 million of insurance or bond. Category III cylinder exchange operators have their own $300,000 figure under 527.04(2). Category IV dealers in appliances and equipment are left out of the requirement entirely. There is no tier for a smaller dealer, a single location or a short delivery route.

Forms, fees and renewal

Rule 5J-20.004 adopts the Category I application as FDACS-03578 and the bond as FDACS-03587, LP Gas Indemnity Bond. Applicants proving insurance use FDACS-03588, LP Gas Insurance Affidavit. The Category I license fee under 527.02 is $400 per year. Licenses renew annually, biennially or triennially as the licensee elects, and every renewal must meet the same requirements for each licensed year. If the bond becomes insufficient, the department may require a new one and must cancel the license if it is not filed.

Eligibility and Requirements for a Florida LP Gas Indemnity - Category 1 ($1,000,000) Bond:

• Surety company authorized to do business in Florida.
• Bond amount of exactly $1 million. Chapter 527 sets no lower tier for Category I.
• Commissioner of Agriculture named as obligee.
• Principal name on the bond matching the license application.
• Replacement bond on request if the department finds the existing bond insufficient.

Florida LP Gas Indemnity - Category 1 ($1,000,000) Bond FAQs:

Official and Additional Resources for the Florida LP Gas Indemnity - Category 1 ($1,000,000) Bond: