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Airline Reporting Corporation Bond

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Your Guide to Airline Reporting Bonds

SuretyBonds.com is legally licensed to issue airline reporting bonds nationwide. Whether you need an ARC bond in New York, Illinois or California, we can help!

The Airlines Reporting Commission requires airline reporting bonds to ensure any payment collected by a travel agent will be sent to the proper airline company.

The more airline reporting professionals know about surety bond insurance, the better prepared they will be to buy or renew their airline reporting bonds. To help with this, our surety specialists have developed a simple guide to airline reporting bonds.

What is an airline bond?

Required by the Airline Reporting Commission (ARC), Airline Reporting Bonds, better known as airline or ARC bonds, are surety bonds travel agents are required to obtain before they are given travel related information and allowed to distribute airline tickets.

This type of commercial surety bond protects customers, airline carriers, and ARC by:

  • Ensuring any payment collected by a travel agent from customers will be sent to the proper airline company
  • Guaranteeing travel agents will forward payments to ARC made through the corporation’s systems
  • Protecting carriers and the Airlines Reporting Corporation from fraudulent practices by travel agents

If a travel agent fails to forward any payments to ARC or a carrier, these parties can place a claim against the bond.

How much does an airline bond cost?

Bond amounts are determined by ARC, but must be at least $20,000. Since the amount of the bond varies, the premium an applicant will pay also varies. The premium an applicant pays is based on the health of their credit. An applicant with exceptional credit could pay a premium as little as 1% of the total amount of the bond.

Who needs an ARC bond?

Travel agents, agencies and any businesses offering airline transport to their customers need to post an ARC bond. Bonded travel businesses get accredited by the Airlines Reporting Corporation to sell airline tickets to their customers, and receive travel-related information.

ARC bonds are different from travel agency bonds. Travel agency bonds guarantee your compliance in all your bookings, regardless of whether they involve airlines. Also, while ARC bonds are required by the Airlines Reporting Corporation, travel agency bonds are often required by your state. Depending on your location, you might need to obtain both bonds.

Learn more about ARC bonds

There a few things you should know about airline bonds before purchasing one:

  • Airline reporting bonds are in effect for one year and must be renewed annually until claimed against or canceled. The surety has the right to cancel the bond at any time by giving 30-days’ written notice to the principal and obligee.
  • ARC bond must be continuous and valid for as long as an agent has ARC accreditation
  • A number of surety agencies require applicants to post collateral due to the risk of this type of bond. At SuretyBonds.com, we are willing to write such bonds at low rates without requiring collateral to qualified applicants.

Additional Resources

Application Information

Industry Agents’ Handbook

Agent Reporting Agreement

ARC Contact Information

Call 1 (800) 308-4358 to talk with a Surety Expert