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What is a Financially Responsible Officer Surety Bond or FRO Bond?

A Financially Responsible Officer Bond or FRO Surety Bond is required by Florida Administrative Code 61G4-15.00.21 of all designated financially responsible officers of a construction company in Florida.  The code states that the financially responsible officer “shall comply with the requirements of Rule 61G4-15.006, F.A.C., except that the financially responsible officer shall also demonstrate a personal or business organization net worth of at least $10,000 regardless of the category of contractor’s license held by any other qualifier for the business organization, $10,000 cash and a Financially Responsible Officer Bond or FRO Bond in a form acceptable to the Board’s Executive Director made payable to the Board, for fines and costs, in the amount of $100,000.”

Do I need a Financially Responsible Officer Surety Bond?

Generally, most construction company owners need an FRO Bond if they are using another Florida contractor’s license to qualify their company.  This is because some contractors who use their license to qualify another business do not want to be financially responsible for the actions of the company they are qualifying.  In many cases the qualifying contractor doesn’t have much to do with the day-to-day business of the construction company and does not want to be responsible for paying fines and fees incurred by the company he or she is qualifying.  The financially responsible officer bond allows the qualifying contractor to shift the financial responsibility of the qualified company back to the individual which in many cases is the owner or president.

What Financially Responsible Officer Surety Bond or FRO Bond amount do I need?

The required Financially Responsible Officer Bond or FRO Surety Bond needed for financially responsible officers registering after February 1st, 2007 is $100,000.  However, those financially responsible officers who registered prior to February 1st, 2007 are “grandfathered” in and need only to provide a Financially Responsible Officer Bond or FRO Bond in the amount of $50,000.

How much does a Financially Responsible Officer Surety Bond or FRO Bond cost?

As with most surety bonds, the Financially Responsible Officer Bond or FRO Surety Bond cost is based on your personal credit score.  Individuals with excellent credit can expect to receive a quote for $900 or 0.9% of the $100,000 surety bond amount.  Individuals with less than perfect credit can expect to receive a quote starting at $1,000 or 1% of the $100,000 surety bond amount.  For those financially responsible officers who qualify for the $50,000 bond amount, a quote of $500 is expected for individuals with excellent credit and a quote of up to $1,000 is expected for those individuals needing a bad credit surety bond.

How do I apply for a Financially Responsible Officer Bond or FRO Bond?

  1. Complete our online Financially Responsible Officer Bond or FRO Bond application, or
  2. Download and complete our printable Financially Responsible Officer Bond or FRO Bond application, and
  3. Receive your surety bond quote in minutes!

Apply now