Louisiana terminal operator bonds.
From $7,500.

A licensed motor fuels terminal operator files a bond with the Department of Revenue under R.S. 47:818.40 — a minimum of $1,000,000 or three months’ tax liability, whichever is greater. The premium is 0.75% of the bond amount; a bond this size gets a quick underwriter review rather than instant issuance.

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Required for a Louisiana terminal operator license under R.S. 47:818.40

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Minimum $1,000,000 or three months’ tax liability — whichever is greater

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0.75% of the bond amount — large bonds get a quick underwriter review, not instant issuance

0.75% ratepriced by your bond amountNo credit reviewnot even a soft pullQuickreview on large bonds

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How it works

Apply, quick review, filed.

A million-dollar bond gets a short underwriting look rather than instant issuance. Here is the whole process:

TODAY · ONLINE

Apply online

Your business details, the bond amount your license requires, and the effective date — that is the entire application.

WITHIN 48 HOURS

Underwriter review

A bond at this level gets a quick review of the business — most clear within 48 hours. We will tell you if anything else is needed.

ON APPROVAL

File with the Department of Revenue

Pay and receive the executed bond, ready to file with your terminal operator license application or renewal. Wet-ink originals mailed whenever the state insists.

About this bond

What it is and who needs it.

What the terminal operator bond covers

A terminal operator runs an IRS-registered bulk storage terminal where motor fuel is held before it is removed across the rack. Terminal operators are licensed by the Department of Revenue under R.S. 47:818.37 and carry the largest bond in the motor fuels program because of the volume of fuel — and tax — moving through a terminal.

R.S. 47:818.40 sets the terminal operator bond at a minimum of $1,000,000 or three months’ tax liability, whichever is greater. The statute also provides that only one surety bond is required for a supplier that is also a terminal operator — so if you hold both licenses, confirm the controlling amount with the Department.

It is a guarantee to the state, not insurance for you: if the Department recovers against the bond, you repay the surety. A bond at this level is underwritten — we run a quick review of the business rather than issuing instantly.

R.S. 47:818.40 (bond requirements; amounts)Louisiana R.S. 47:818.40 sets the terminal operator bond at a minimum of $1,000,000 or an amount equal to three months’ tax liability, whichever is greater, and provides that only one surety bond is required for a supplier that is also a terminal operator. Confirm your required amount on your Department of Revenue license notice.

You need this bond if you are

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Applying for a Louisiana terminal operator license through the Department of Revenue

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Operating a bulk fuel terminal where fuel is removed across the rack

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Holding both supplier and terminal operator licenses and bonding the combined position

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Adjusting your bond after a tax-liability review changed the required amount

One application, then a quick review.

Submit the application with the bond amount your license requires. A bond at this level gets a short underwriting look — most clear within 48 hours.

Start the application →

FAQ

Common questions.

How much is the Louisiana terminal operator bond?Your premium is 0.75% of the bond amount. Under R.S. 47:818.40 the bond is a minimum of $1,000,000, or three months’ tax liability if greater. Enter the figure your license requires at the application to see your exact price.

Why is this bond so much larger than the distributor bond?A terminal handles the volume of fuel — and tax — for many downstream parties, so R.S. 47:818.40 sets a $1,000,000 minimum versus $20,000 for a distributor. Pricing is the same variable structure either way.

I also hold a supplier license — do I need two bonds?No. R.S. 47:818.40 provides that only one surety bond is required for a supplier that is also a terminal operator. Confirm the controlling amount with the Department of Revenue.

Is there a credit check?The application collects no credit information — there's no credit section at all. A bond at this level is underwritten — we run a quick review of the business. It informs approval; the premium is 0.75% of the bond amount.

How fast can I get it?Most terminal operator bonds clear within 48 hours of the application. We will reach out if underwriting needs anything before issuing.

Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.

How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.

Related bonds

Other Louisiana bonds.

Terminal operator bond, reviewed fast.

Pricing from $7,500. Most clear within 48 hours and file with the Department of Revenue.

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Your premiumfrom $7,500

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