What is a Financially Responsible Officer Bond?

A person who wants to become or is appointed a financially responsible officer (FRO) of a construction company in Florida must post a $100,000.

The purpose of the bond is to guarantee that the FRO will make sure that any financial obligations that result from the company's work are met. This includes any payments due to the State Treasurer of Florida under state law.

The bond further guarantees that the FRO will keep and submit books and records as required by the Department of Business and Professional Regulation (DBPR), and perform business in compliance with all laws and regulations that apply.

If the FRO violates these conditions, a claim can be filed against their bond to compensate for any damages or losses that arise as a result. Compensation extended by the surety under a claim can be as high as the full amount of the bond.

How can I become a FRO in Florida?

To add a FRO, a company must apply at the DBPR and complete several requirements. This includes submitting an application, providing a credit report, fingerprints, a surety bond, and paying a fee.

Is this your first time applying for a bond? Learn more about the purpose and function of surety bonds from our ‘What is a surety bond' guide!

Start your surety bond application today! Why us?
  • Quick turnaround - just 1-2 business days
  • Tailor-made advice on building a strong application
  • Exclusive bad credit programs

See below for information about the cost of this bond and how to apply for yours!

If you have any questions about this bond, call us at (866)-450-3412 anytime!

How Much Does it Cost to Get a FRO Bond in Florida?

The cost of your bond is equal to a fraction of its full amount. When you apply to get bonded, the surety will review your application and determine a bonding rate based on several factors. These are as follows.

Factors that determine your bond rate

An applicant's personal credit score is the most important factor that sureties consider. A high credit score signals that the applicant is responsible and capable of managing their finances.

Applicants with medium to high scores are typically offered a rate between .75% and 5% of their bond amount.

Since the amount for this bond is fairly high, sureties will also likely want to review your:

  • Personal and business financial statements
  • Fixed and liquid assets
  • Industry experience

See the bond table below for an estimate of the cost of your bond, based on your credit score.

Florida Financially Responsible Officer Bond Cost Based on Credit Score
Bond type Bond Amount Credit Score
Above 700 650-699 600-649 Below 599
FRO Bond $100,000 $750-$1,500 $1,000-$2,500 $2,500-$5,000 $5,000-$7,500

What if I have bad credit?

Even with bad credit, you can still get bonded. Yet, since sureties assess the risk associated with issuing a bond primarily based on credit score, you will likely need to pay a higher premium.

Rates for applicants with low credit are usually between 5%-15% of the total bond amount. You can learn more about getting bonded with a low score from our Bad Credit Program page.

What Can Give Rise to a Claim?

The FRO bond is conditioned on the officer's execution of their obligations and responsibilities as defined under Florida law. This includes payments that are due to the state Treasurer, but also include keeping books, records, and conducting business in an honest and legal way.

If a FRO violates these conditions, this can give rise to a bond claim. The surety that backs the bond will then investigate the claim to determine its validity. If the claim is valid, the surety will extend compensation to claimants to cover damages for as much as the full amount of the bond.

In return, the bonded FRO will then need to reimburse the surety. It is a standard condition of every bond agreement that the surety is not liable for claims brought against the bonded party. Given the high amount of this bond, and the disruption that can be caused by a claim, the best course of action for a bonded FRO is to remain compliant with the bond agreement!

Apply For Your Bond!

Apply for your financially responsible officer bond here by completing the bond form. We will then provide you with a free quote on your bond and more details about getting bonded.

Start your surety bond application today! Why us?
  • The lowest possible rates
  • A 100% money-back guarantee
  • Access to specialty programs, not available to small agencies

If you need more information about the FRO bonding requirements in Florida, call us at (866)-450-3412!

Further Reading


About the author:
Todd Bryant
Todd Bryant is a graduate of Germantown Academy and the University of Pittsburgh College of Business Administration Honors College. He has been President of Bryant Surety Bonds, Inc., an A+ rated Business with the Better Business Bureau, since 2007. Licensed as a producer with the Department of Insurance, he has been published in the National Association of Surety Bond Producers newsletter and on numerous authoritative publications such as The Washington Post, Entrepreneur.com, Azcentral.com and many more.