To be approved for, and to maintain, licensure as a Financially Responsible Officer (FRO) in the State of Florida, the Construction Industry Licensing Board requires a $100,000 Financially Responsible Officer Bond of the applicant. Financially Responsible Officers (FRO) are designated by construction companies to do exactly what it sounds like—oversee the financial responsibility of the business.
Jet Insurance Company provides the Financially Responsible Officer Bond to act as a form of financial assurance for the Board that the FRO will uphold all applicable state regulations, and if a violation occurs, payment is guaranteed to cover any damages.
It’s a little ironic that the Financially Responsible Officer has to further prove their financial responsibility through a surety bond, but this additional requirement simply ensures that the FRO will be held liable for the company’s actions and damages will be covered by the provider (Jet) regardless of the FRO’s lack of funds…and judgment.
At Jet, approved rates for a Financially Responsible Officer Bond are a small percentage of the $100,000 limit and are based on the personal credit score of the applicant. Prices start at $750 for a one-year bond term or just $75 a month.
Further pricing at various bond terms can be found in the chart below.
If you are looking for convenience when it comes to purchasing and maintaining a surety bond, Jet’s monthly and multi-year payment selections are great options to choose from. Specifically, the monthly term, as your bond will remain active with the Board as long as payments are fulfilled or until cancellation is sought.
Jet’s application for the Financially Responsible Officer Bond may be completed online. To begin, some general information is needed such as your contact details, social security number for a soft credit check (this won’t have an impact on your score), and the name of the construction company you will be acting as a FRO for.
Once submitted, you’ll receive an approved rate that is ready for immediate purchase. Simply choose the bond term that works best for you and fulfill the payment. You’ll then receive a copy of your receipt and bond form via email instantly. It’s that easy!
The signed and sealed Financially Responsible Officer Bond form, along with the License Application for Financially Responsible Officer, must be submitted to the Florida Construction Industry Licensing Board through the Department of Business and Professional Regulation’s Application Center. You are expected by the Board to hold onto the original form for your personal records (following your purchase with Jet, you’ll receive the original signed and sealed bond form in the mail).
If you have any questions or concerns regarding the FRO application process, the Board’s mailing address and contact details can be found listed below.
Division of Professions
Construction Industry Licensing Board
2601 Blair Stone Road
Tallahassee, FL 32399
It is important to note that if you are planning on acting as a FRO for more than one construction company, a separate Financially Responsible Officer Bond and license application is needed for each business.
According to Title XXXII, Chapters 455 and 489 of the Florida Statutes, a Financially Responsible Officer is expected to take on all financial aspects of the construction business, which includes final authority over contracts, payroll, account records, lawful reporting, and general payments regardless of the form of payment (i.e. checks, direct deposits, digital payments, cash, etc.).
If the Financially Responsible Officer commits a license violation, such as not paying an employee for their work or failing to pay all taxes due to the state, a claim may be filed upon the Financially Responsible Officer Bond.
Official complaints are reviewed and investigated by the Construction Industry Licensing Board, and if found to be justified, the Board may file a claim against the bond on behalf of the damaged claimant. However, this will only occur if the FRO is unable or unwilling to fix the violation.
If a claim is officially filed, Jet should receive notice of such in the mail. Once received, the Jet team will immediately contact the FRO for all available information on the alleged violation and Board proceedings. These details are used for our own review and investigation into the claim.
Per the Financially Responsible Officer Bond form, valid claims are paid up to the bond’s limit (claim payouts will never exceed the total liability covered by the bond). The FRO will then be expected to reimburse Jet for the claim that was paid on behalf of their license violation (as all surety providers require).
Surety bonds are often confused with insurance, while they are more like a line of credit. Jet provided the FRO a $100,000 line of credit with the hopes that the licensee would not have to use it, but once they did, it is expected of them to refill that line of credit back up. Failure to do so will lead to future difficulties in obtaining a surety bond which is often required to work in various fields of the construction industry.
If you are working in the construction industry as a licensed contractor, you may need a Construction License Bond.