Why a Financially Responsible Officer Bond


Have you come across the term “Financially Responsible Officer Bond” while conducting your construction business activities in Florida?

Are you well acquainted with the facets of this term and its relevance to the construction industry?

Would you like to be further enlightened on the subject of Florida surety bonds, specifically Florida FRO bonds?

Read ahead for information about FROs and FRO bonds applicable to the construction industry in Florida.

What is a Financially Responsible Officer Bond?

If you own a construction business in Florida, the state Department of Business and Professional Regulation allows you or any other member within your organization to solely take on the responsibility of all the financial aspects of your business. The role assumed by this individual is referred to as a Financially Responsible Officer (FRO).

A Financial Responsible Officer Bond is a commercial license surety bond which requires the business to pay a $100,000 surety. The bond can be renewed annually and can be maintained as per the individual’s term of service as the FRO.

What does the Financially Responsible Officer Bond Entail?

A Financially Responsible Officer Bond provides a guarantee that all financial activities of the construction business are conducted in adherence to the laws and statutes applicable in Florida.

If any financial violations occur while conducting business practices in the construction industry, a claim on the FRO bond may arise. In cases where the validity of the claim has been positively established, the surety makes a payment to clear the unsatisfied claim amount and the penalty amount. The surety then collects this amount from the FRO, who is ultimately responsible for the amount paid on such a claim.

The FRO Bond, therefore, allows the Florida Construction Industry Licensing Board to recover fines and miscellaneous costs in accordance with the relevant Florida Administrative Code.

What is the Cost of an FRO Bond?

The rates of Florida FRO Bonds are based on the qualifications of the individuals applying for the bond. Factors such as credit and financial standing also contribute to the bond rate. To obtain an accurate quote, you can apply for a bond and request a quote for the same.

Are There Any Special Requirements to Apply for an FRO Bond?

The $100,000 bond amount is a standard amount required to apply for Florida Surety Bonds. There are no special requirements needed to fulfil your bond request; however, if any special requirement arises, you will be informed of the same.

How to Apply for an FRO Bond?

In order to apply for an FRO Bond in Florida, kindly get in touch with us through e-mail or give us a call and we will assist you with the application process. Our FRO Bond agents will go through the requirements of your FRO Bond with you and will also help you obtain the best possible quote for your bond request.

We offer all types of Florida Surety Bonds for small and large businesses and we are flexible enough to handle every type of construction company. We do not charge you for bid bonds and offer you free consultation while establishing your line of bonds. We conduct all our practices with strict confidentiality and you can rely on us for the best prices in the market while applying for your FRO Bond.

Florida Department of Business and Professional Regulation and Your FRO Bond



Financially Responsible Officers are required by the Florida Department of Business and Professional Regulation to insure financial obligations resulting from construction work. The bond is payable to the Construction Industry Licensing Board, in the amount of $100,000.

If you were previously registered as a Financially Responsible Officer prior to February 1, 2007, you will only be required to renew your existing $50,000 bond, unless you decide to submit a new application or updated bond.

If you’ve ever wondered about the necessity for construction industry bonding in Florida, it’s important to know that there are many different types of construction industry bonds you might need to apply to, depending on your exact situation.

Florida Department of Business and Professional Regulation administers these bonds in compliance with state law. The Financially Responsible Officer bond is payable to the Construction Industry Licensing Board.

Bob Barra Bonds in Coral Springs Florida can handle all of your bonding needs.

Financial Stability in the Construction Industry


Construction cranes in front of office building

© Ditto/Corbis

Think you’re stable? Do you have financial responsibility within the construction industry in Florida? Well, the State of Florida wants to know.

State law in Florida requires that a construction contractor must be financially stable prior to the receipt of a contractor’s license. Although the bond can sometimes be waived for qualified applicants, there is a requirement from the low end of $5,000 to the high end of $100,000.

Generally, all financially responsible officers in the Florida construction industry should have the Financially Responsible Officer (FRO) bond.

Financial Responsibilities of a Florida Corporate Officer: Construction Industry

If you work for a construction company, especially if you are a corporate officer and hold any type of financial responsibility, you need to read this.

You probably already know that certain corporate officers have liability on behalf of the corporation. And, if you’re in Florida, there are bonding requirements that need to be met.

The bottom line is that you are most likely required to provide a bond to back up a contract that protects yourself, your company and possible clients you deal with.

The situation can be confusing because there are many different types of Florida surety bonds. In Florida, the essential need is usually for a financially responsible officer bond, which maintains compliance with the regulations that are in place.

So, what does a Florida financially responsible officer surety bond do for you?

When receiving a bond, you are finishing and fulfilling your contract with the other person or company who is on the receiving end of your obligation. As the business providing a service, you are backing up “good faith” promises and intentions with what is a performance guarantee.

Although there are several different typesof contract bonds, the Florida financially responsible officer bond is something you should pursue.

Meanwhile, a bid bond guarantees that the contractor will accept the contract if the winning bid is received. A performance bond assures performance of the contract. A maintenance bond guarantees that repairs will be performed for a specified period of time.

There are other types of commercial surety bonds that have no real meaning in terms of completion of a contract.

FRO Bonds: Getting Started

Florida Financially Responsible Officers (FROs) must acquire a bond as a means of insurance to back financial obligations that could result from construction work. The bond is paid to the CILB (Construction Industry Licensing Board), in the amount of $100,000, but good credit allows for a bond at lower cost.

Bob Barra Bonds points out that FRO bonds are essentially a commercial license surety bond in the State of Florida. The State requires this bond and they are renewed every year.

A Financially Responsible Officer is personally responsible for all financial affairs related to the business. The FRO bond is intended to guarantee that the financial activities of the business are conducted in accordance with applicable state laws. The financially responsible officer is, in the end, responsible for amounts paid on a claim.

Insofar as the cost of acquiring this type of bond, the best approach is to simply apply for it, allow for an underwriter review, followed by a subsequent quote.

There are no specific or special requirements to apply for the financially responsible officer bond and the bond form is a standard one.Bob Barra Bonds will review your request and provide a timely, realistic quote based on your current needs.

Financially Responsible Officer Bonds: What You Should Know

The State of Florida requires that a bond is in place with applications for the financially responsible officer of an organization. But where do you start?

There are many situations that can create this need. Perhaps there is a change of ownership within an organization, the loss of a licensed qualifier, or a change of company principals. In either case, the requirement is the same.

The Florida Department of Business and Professional Regulation has a bonding requirement of $100,000. The requirement was lowered to allow for more officers and qualifiers to acquire the bond necessary for licensing.

An applicant in Florida needs to have a good credit score, and there is a requirement of no tax liens or bankruptcies. There is an excellent success rate in receiving this bond, and Bob Barra Bonds works within a high quality network of providers.

The Florida Financially Responsible Officer Bond (also known as the FRO Surety Bond) is intended to provide a way for the Florida Construction Industry Licensing Board to recoup fines and other costs in accordance with the Florida Administrative Code.

Bob Barra often points out to applicants that the standard rate for Florida Financially Responsible Officer Bonds is 2% for most applicants although lower rates are available for the most qualified of applicants.

Bob Barra Bonds in Coral Springs, Florida can provide further information at no obligation.