A Financially Responsible Officer bond is a type of commercial license surety bond required in Florida. The Florida Department of Business and Professional Regulation requires that an individual wishing to become the financially responsible officer for a construction business must provide a $100,000 surety bond. The bond must be maintained for as long as the individual holds the financially responsible officer position. FRO bonds are annually renewable.
A Financially Responsible Officer is personally responsible for all financial aspects of the business. The FRO bond requirement is meant to provide a form of guarantee that the financial aspects of the business are conducted in a manner adherent to applicable state laws and statutes. In situations where a violation occurs within the financial operations of the business, the potential for a claim on the bond arises.
In the instance of a claim on the FRO bond, if the claim is found to be valid, the Surety would have to pay the unsatisfied claim amount up to the penalty amount of the bond. The Surety would then attempt to collect the amount paid on the claim by the Surety from the financially responsible officer. The financially responsible officer is ultimately responsible for any amount paid on a claim.
Financially Responsible Officer bond rates vary depending on the qualification of the bond applicant/s. The rates are determined based on various factors which include credit and financial standing as well.
The best way to get a truly accurate quote for a Financially Responsible Officer Bond is to apply for the bond and let the underwriter review the request and put a quote together.
Viking Bond Service, Inc. will always attempt to get the best rate for any surety bond request. In instances where the rate is high to start due to challenged credit, our renewal department can remarket the bond for a lower rate if there has been an improvement in credit and/or financial standing.
There are no special requirements for applying for the financially responsible officer bond. The required bond form is standard. The $100,000 bond amount is standard as well. If any special requirements are necessary for your specific bond request, an agent will promptly inform you.
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