State of Florida Financially Responsible Officer Bond

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Female FRO with license and bond to work in Florida

Are you considering becoming a financially responsible officer (FRO) in Florida? If so, you may be required to obtain a financially responsible officer bond. Here’s everything you need to know.

What is a state of Florida financially responsible officer bond?

A state of Florida financially responsible officer bond is a type of financial guarantee bond ensuring that FROs of construction businesses faithfully perform their duties and responsibilities as they carry out the financial aspects of a business. The $100,000 surety bond protects the organization’s licensing agency and customers if the FRO behaves unethically or breaks the law. FROs must maintain this bond and renew it annually for as long as they hold their position.

Get Your Florida FRO Bond:

Quick Takeaways

  • The Florida Department of Business & Professional Regulation requires the FRO of a construction company to be licensed and bonded.
  • The $100,000 surety bond protects the organization’s licensing agency and customers if the FRO behaves unethically or breaks the law. 
  • FROs must maintain this bond and renew it annually for as long as they hold their position.

Who needs a financially responsible officer bond in the state of Florida?

The Florida Department of Business & Professional Regulation (Construction Industry Licensing Board) requires the FRO of a construction company to be licensed and bonded. The bond ensures that the FRO will carry out their financial responsibilities according to the law and conduct business ethically. Duties may include creating reports, record keeping, and making payments.

How do Florida FRO bonds work?

There are three parties involved in a Florida financially responsible officer bond:

  • Principal: The individual required to obtain the bond and acts as the FRO for the organization or business
  • Obligee: The entity that requires the bond, typically a government agency or regulatory body
  • Surety: The insurance company that issues the bond and guarantees payment to the obligee in case the principal fails to fulfill their obligations 

The bond protects the public and licensing agencies in Florida if the FRO fails to fulfill their duties properly. A claim can be made against the bond if an FRO violates the law. If the claim is valid, the surety company will compensate the affected parties up to the total amount of the bond. However, the FRO is ultimately responsible for repaying the bond company for any claims paid out.

How much does a Florida financially responsible officer bond cost?

The Construction Industry Licensing Board requires a $100,000 surety bond. Your bond premium (the amount you pay annually for your bond to remain active) will be a small percentage of this amount. We often issue these bonds for 1-5% (or $1,000 to $5,000). Typically, the better your credit score, the lower your rate.

How do I become an FRO in Florida?

To become an FRO in Florida, you must meet specific qualifications and requirements set by the regulatory agency that oversees your organization (Construction Industry Licensing Board). This includes:

  • Completing an application
  • Paying a $200 application fee
  • Obtaining a surety bond
  • Submitting electronic fingerprints
  • Agreeing to a credit check
  • Providing proof of satisfaction of judgments, liens, and discharge of bankruptcy (if applicable)
  • Providing supporting legal documentation (if needed)

See the complete application checklist.

Frequently Asked Questions

If someone files a claim against your bond, the bond company will investigate the claim and determine whether it’s valid. If it is, the bond company will pay out compensation up to the full amount of the bond. Then the FRO must reimburse the surety company in full.

Work with a licensed surety bond provider (like ZipBonds) to apply for a Florida financially responsible officer bond. They will guide you through the application process, help you secure the bond you need, and remind you when it’s time to renew.

Yes, FRO bonds in Florida must be renewed annually or as required by the regulatory agency that oversees your organization. Make sure to stay up to date with renewal requirements to avoid any lapses in coverage.

Get a State of Florida FRO Bond

ZipBonds offers the fastest and most secure option for getting the surety bonds you need. Our all-digital platform is intuitive and straightforward. Apply online or call us at (888) 435-4191 to speak with an agent. Most of our bonds are approved and processed instantly from our site.

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About ZipBonds.com

Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”

Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.