The Florida Financially Responsible Officer (FRO) Surety Bond plays a critical role for individuals managing financial operations in construction companies. Whether you’re looking to become an FRO, understand bond costs, or renew your bond, this guide will cover all the details you need.

What Is a Financially Responsible Officer Bond?

A Financially Responsible Officer (FRO) Bond is a $100,000 surety bond required by the Florida Department of Business and Professional Regulation (DBPR). It ensures that the FRO fulfills financial obligations, including payments to subcontractors, suppliers, and state fees.

This bond protects the public and the state from financial losses caused by the officer’s failure to comply with financial responsibilities.

Why Do You Need an FRO Bond?

If you’re managing a company’s finances but are not the qualifying agent (the licensed contractor), Florida requires you to obtain an FRO Bond. This:

• • Protects the business and stakeholders from financial mismanagement.
  • Ensures compliance with Florida Statutes (Section 489.119).
  • Allows the company to continue operating legally under a construction license.

Who Needs a Financially Responsible Officer Bond?

This bond is required for:

• • Individuals appointed as Financially Responsible Officers in licensed construction businesses.
  • Any company where the qualifying agent delegates financial responsibilities to another person.

If you’re taking on this role, obtaining the bond is mandatory to secure your designation with the DBPR.

Financially Responsible Officer Bond Cost

The cost of the bond depends on several factors:

• • Premium Rates: Typically range between 1% and 5% of the $100,000 bond amount. For most applicants, this translates to an annual cost between $1,000 and $5,000.
  • Credit Score: Higher credit scores qualify for lower premiums.
  • Financial Stability: Personal and business financial statements can impact rates.

If you have less-than-perfect credit, don’t worry—bond providers often offer bad credit programs to help you qualify.

How to Become a Financially Responsible Officer

To become a Financially Responsible Officer in Florida, follow these steps:

1. 1. File an Application: Submit the required forms to the Florida DBPR.
   2. Obtain Your Bond: Purchase a $100,000 FRO Surety Bond.
   3. Complete a Credit Check: The DBPR requires a financial credit report.
   4. Submit Fingerprints: For a background check.
   5. Pay Fees: Application fees apply when submitting documents to the DBPR.

Once approved, you will officially serve as the FRO for the business.

Renewal Procedure for FRO Bonds

The Financially Responsible Officer Bond must be renewed annually to remain active. Renewal involves:

1. 1. Reassessing Bond Costs: Premium rates may change based on updated financial information or credit scores.
   2. Submitting Updated Documents: Ensure compliance with the DBPR’s renewal requirements.
   3. Timely Payment: Avoid any lapse in coverage by renewing before your bond’s expiration date.

Failure to renew the bond could result in suspension of your designation and penalties for the company.

Why Choose Innovative Bonding Service?

At Innovative Bonding Service, we make obtaining your FRO Bond quick, simple, and stress-free. Here’s why clients trust us:

• • Competitive Rates: Low premiums, even for applicants with credit challenges.
  • Fast Approvals: Get bonded in as little as 24 hours.
  • Expert Guidance: Our team walks you through every step of the process, ensuring compliance with Florida requirements.
  • Reliable Support: We provide annual renewal reminders and seamless renewals to keep your bond active.