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Florida Financially Responsible Officer Bond (FRO Bond)

Bonding requirements are different in every state. If you need to obtain a Financially Responsible Officer Bond in Florida, it's important you understand the rules and requirements as they apply to that specific state. Otherwise, bonding could become more difficult than necessary. Read on a for a complete rundown of a Florida Financially Responsible Officer Surety Bond.

What is a Florida Financially Responsible Officer Bond?

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.

How does a Florida Financially Responsible Officer Bond work?

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 surety 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 surety 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.

Who should get a Florida Financially Responsible Officer Bond?

Anyone intending to serve as a financially responsible officer in Florida must obtain one of these surety bonds. The state takes the surety bond requirement seriously because people serving as financially responsible officers perform sensitive work that's at high risk of fraud. To mitigate that risk, Florida prohibits anyone from serving in this role without proving they have a valid and active surety bond first.

Who are the parties involved in a Florida Financially Responsible Officer Bond?

Just like all types of surety bonds, FRO bonds involve three parties:

• Principal - The financially responsible officer required to get the surety bond is the principal. That person must also pay for any claims filed against the bond.
• Obligee - The party wronged by the financially responsible officer is the obligee. That person/party has a right to file claims against the surety bond seeking compensation.
• Surety - The company that issues and backs the surety bond is the surety. The surety pays for all valid claims but the principal must pay that debt back with interest and fees added.

How much does a Florida Financially Responsible Officer Bond cost?

The cost of a Financially Responsible Officer bond varies 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 surety bond and let the underwriter review the request and put a quote together.

Viking Bond Service 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.

How are claims handled for Florida Financially Responsible Officer Bonds?

Proving financial malfeasance can be difficult, but it's also essential in this case because the surety will only settle valid claims. Therefore, the surety conducts a thorough investigation into every claim to determine its merits. The surety settles all valid claims in full up to the surety bond amount, but the company then has to collect the amount of the claim from the principal - the party with the ultimate financial responsibility as outlined in the surety bond agreement.

How to apply for a Florida Financially Responsible Officer Bond?

There are no special requirements for applying for the Financially Responsible Officer bond. The required bond form is standard. The $100,000 surety bond amount is standard as well. If any special requirements are necessary for your specific bond request, an agent will promptly inform you.

1. Contact us to go over your surety bond request. Our agents will be able to tell you exactly what may be required to get a good quote for your specific FRO bond request.
2. Complete an application and send any required documentation. FRO bonds are underwritten on credit and financial strength so a financial statement may be needed as well. An agent will let you know exactly what is needed to get the best quote.
3. Once the application is received, an agent will work to get the best quote for the request. Typically the quote will be obtained the same day to 24 hours.
4. Once the quotes are received, the most favorable quote will be relayed. All quotes are FREE with No Obligation.
5. The last step is to simply pay the premium, provide the MC number, if not already supplied, and receive your Financially Responsible Officer bond.

Request a Financially Responsible Officer Bond Quote

Searching for a company that meets all your bonding needs? Rely on Viking Bond Service. We are a nationally licensed surety agency that can help you secure a Florida Financially Responsible Officer Bond within 48 hours even if you have bad credit. For more information, submit your questions through the contact form on this page or call us at 1-888-278-7389. Get the bond process started whenever you're ready, and get a no obligation quote by completing this online application.