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.