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.