Florida Financially Responsible Officer Surety Bond (FRO Bonds)

In the majority of cases, a FRO is either the owner or another type of officer who primarily presides over the financial responsibility of a construction company. In the State of Florida, FROs require licensing to obtain this bond, which is needed in order to meet full compliance with state laws. The purpose of this bond is to ensure that the officers who carry financial responsibility adhere to all applicable and required laws, have business practices which are conducted in conformity with the rules of the Department of Business and Professional Regulation (DBPR), and ensure the keeping of records, the making of reports, and the payment of any funds which may be required by the State, pursuant to Rule 61G4-15.0021, Florida Administrative Code. It protects both Florida’s licensing entities and the general public from issues such as non-payment of any due fees and costs. The bond also serves as a guarantee that the FRO will promptly provide all required paperwork to the relevant authorities. As with other types of surety bonds, FRO bonds comprise a three-party contract — the principal is the financial responsibility officer; the obligee is the state authority that provides the license and that requires the bond; the surety is the entity that provides the bond as well as financial backing.

• A FRO Bond is a $100,000 surety bond ($50,000 for individuals who were registered prior to Feb. 1, 2007) that is required to be posted by an officer of a construction company in order to be licensed as the FRO for the company. The Financially Responsible Officer is fully responsible for all financial aspects of the business organization and may not be designated as the Primary Qualifying Agent.    
• The designated financially responsible officer shall furnish:
  • evidence of the financial responsibility
  • credit and business reputation of himself/herself or the business organization he/she desires to qualify, as determined appropriate by the Construction Industry Licensing Board (CILB)
• This surety bond is needed when the Qualifying Agent (licensed contractor using their license to qualify a business), as named by the construction company’s license, is not also the Financially Responsible Officer. In other words, the FRO is typically the owner (or majority owner) of the construction company and the Primary Qualifying Agent is usually the license holder that qualifies the company. Although the individual FRO is named as the Principal of the surety bond, the construction company is given responsibilities in the form and executes the bond along with the Principal. 
• Whenever there is a change in FRO, a new application and surety bond must be filed.

• FRO Bonds are individually underwritten — as such, the bond price typically varies and depends upon the personal credit report of the applicant as well as experience.
  • We have an exclusive program for FRO bonds that provide the guaranteed best rates available that start at well under 1% – feel free to reach out for a quick, no-obligation quote. We are happy to help!

In short, the Construction Industry Licensing Board (CILB) requires this bond to be posted. The Department of Business and Professional Regulation (DBPR) administers all business licenses and within this department, the CILB and its authority have been created by Florida Statutes Chapter 489. As such, the Obligee on the bond lists the CILB.

Florida Financially Responsible Officer bonds remain in effect and full force until they are either canceled or violated. The surety may cancel the bond by submitting a notice of cancellation by certified mail to the Executive Director of the Florida CILB at least 30 days prior to the effective date of cancellation. The bonding company will monitor and continue to renew the bond on an annual basis, assuming there are no significant changes in credit or claim activity. A notice of renewal is typically sent out 90 days prior to the surety bond’s renewal date.

The following may be required alongside the bond, per the State’s application guidelines, in order to become a Financially Responsible Officer:

• Completed state-issued licensing application
• Application fee
• Submission of electronic fingerprints
• Proof of satisfaction of liens, judgments, and discharge of bankruptcy (if applicable)

To begin the process of obtaining your FRO Bond, contact The ProSure Group.

 Whether you are a first-time applicant for a Florida FRO surety bond or you’re expanding your construction business and require additional bonds to include Construction Bonds such as performance bonds and payment bonds, bid bonds, completion bonds or contractor license bonds, The ProSure Group’s surety experts are here to partner with you in helping you quickly and easily obtain the bonds you need.

We write construction performance and payment bonds and contract bonds for all 50 states. Read about related bonds below:

• Contract / Construction Bonds (Performance bonds, Payment bonds, Bid bonds, Subdivision bonds, etc.)
• Florida Construction License Bonds (Sub-660 Credit Score Bond)
• Florida Contractor License Bonds (Hillsborough County Contractor’s Code Compliance Bond, Orlando Contractor’s Surety Bond, etc.)