Financially Responsible Officer Bond

In Florida, any construction company owner or officer who has to take on the financial responsibility of the business, needs to get licensed with the State of Florida Department of Business and Professional Regulation. As a part of the licensing, they need to provide a financially responsible officer bond. This ensures compliance with the 2014 Florida Statutes.

The bond requirement is currently active in the state of Florida. However, when you start licensing your construction business, it’s best to check with your state authorities whether you need a FRO license and bond.

The bond price you have to pay depends on the bond amount that you are required to present to the licensing authorities. The Florida financially responsible officer bond amount is set at $100,000.

However, the required bond amount is not your bond cost. The bond premium is only a fraction of this bond amount. If your finances are strong, you are likely to pay a premium between 1%-5%.

What factors affect your bond price? Your surety must take a close look at your personal credit score, business finances, and assets and liquidity. It may also consider your professional experience. The purpose is to determine the risk of getting you bonded. If your financial stats are in good shape, you can expect a lower bond cost.

Want to learn more about how your bond price is determined? Go through our surety bond cost page for further information.

It’s possible to obtain the bond you need, even if your finances aren’t perfect. Lance Surety Bonds operates its Bad Credit Surety Bonds program to help applicants with a low credit score, tax liens, bankruptcies, or civil judgements.

Since the bonding risk is higher, you can expect bonding rates in the range of 5% or 10%. You will still get the best deal on your bonding premium with us. We work with numerous A-rated, T-listed surety companies. This means we can select the best bonding option for your circumstances.

Need more details about how bonding works? Make sure to consult our How to Get Bonded page.

Call us at (877) 514-5146 for any further questions you have. Lance Surety Bonds’ specialists will be happy to assist you.

The goal of getting bonded is to provide extra protection for licensing authorities and the general public. In this sense, the bond is not insurance for your business. It’s important to keep this distinction clear.

If you fail to follow the law in your role as a financially responsible officer, you can face a claim on your bond. The maximum penal sum of the bond can be used to provide financial compensation in case of proven claims. At first, the surety that has provided you with a bond will cover the costs. However, you need to repay it fully afterwards.

Bond claims are a serious threat to your business finances and integrity. That’s why the wisest approach is to avoid them completely.