Financially Responsible Officer (FRO) Bonds

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Florida Financially Responsible Officer Bond – (also FRO Bond) is necessary by the Florida Construction Industry Licensing Board (CILB) when the Financially Responsible Officer takes on the financial responsibility and is accountable for all financial aspects of the business organization and is not designated as the Primary Qualifying Agent. This surety bond certifies that the financially responsible officer conducts all duties devotedly and honestly. State laws transfer liability of the license holder to all owners/ partners equally in the case where the Licensee/Primary Qualifying Agent is different from the Business Owner.

What is an FRO Bond?

The State of Florida $100,000 Financially Responsible Officer bond assures the loyal performance of the officer in charge of the organization.  If they fail in this capacity, the Surety is expected to step in and help correct the situation.  It is a lot like having a co-signor on a loan.

How much does one cost?

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Understandably, if you have good credit, you are looking at $2,000 per annum. Sureties are typically looking for the applicant’s personal credit score to be in the mid to high 600’s minimum to qualify for the above premium . There are sureties that are willing to issue FRO bonds when you have poor credit, but it is likely the premium will be greater.

Since each surety company has its own underwriting guidelines for a FRO bond, it would be impossible to list the requisite(s) needed by each surety company for this bond as there are hundreds of different surety companies, which will result in thousands of different scenarios.

FRO Bond Application

The application can be found in the “Forms” tab on the Home Page of our website. This one page form is relatively simple and quick to complete. Aside from applicant specific questions, there are only 4 “yes” or “no” background questions to address. Lastly, you will need to complete the General Agreement of Indemnity on behalf of the applicant, shareholders, and respective spouses.

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