Florida Contractor License Bond

The Florida Construction Industry License Board requires a contractor license bond depending on the contractor classification and their credit. Division I and Division II contractors must carry a bond if they cannot prove financial responsibility with a credit score of 660 or higher. The bond amount varies between $5,000, $10,000, and $20,000. In a case where the business has a Financially Responsible Officer (FRO), a $100,000 bond is required.

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At Jet, we streamline the bond process and provide a guide through the various license requirements in order to quickly and efficiently help contractors become licensed.

Bond Price

The contractor license bond rate can vary from 1.8% to 6.5%. The rate is based on a few underwriting factors including personal credit and license/bonding history. Fortunately, Florida provides contractors the opportunity to reduce the cost of the bond by taking a 14-hour financial responsibility class that cuts bond limits in half. Once the class is completed a Division I bond will cost $10,000 and Division II bond would be $5,000.

Preferred Rates
Bond Type Bond Amount Monthly | Annual
Bond Type: Division I Bond Amount: $20,000 Monthly | Annual:$32 | $376
Bond Type: Division I - Reduced Bond Amount: $10,000 Monthly | Annual:$16 | $188
Bond Type: Division II Bond Amount: $10,000 Monthly | Annual:$16 | $188
Bond Type: Division II - Reduced Bond Amount: $5,000 Monthly | Annual:$10 | $100
Bond Type: FRO Bond Bond Amount: $100,000 Monthly | Annual:$180 | $1000

Financially responsible officer bonds can range from 1% to 12.5%. This bond is based in part on personal credit.

Division I Contractor

Division I contractors include general contractors, building contractors, and residential contractors. Division I construction license bonds are in the amount of $20,000, or $10,000 if reduced through the board approved class.

Apply Now Division I - $20,000 Bond

Apply Now Division I - $10,000 Bond (Reduced)

Division II Contractor

Division II is comprised of roofing contractors, sheet metal contractors, and underground utility and excavation contractors. The limit for a Division II construction license bond is $10,000, or $5,000 if reduced through the board approved class.

Apply Now Division II - $10,000 Bond

Apply Now Division II - $5,000 Bond (Reduced)

Financially Responsible Officer Bond

Every license is required to have someone financially responsible for the license. This person assumes personal responsibility for all financial aspects of the business. The State of Florida assumes this is the primary qualifier. However, if the primary qualifier does not have financial authority then the business should appoint a Financially Responsible Officer (FRO). Licenses with a FRO are required to carry a $100,000 bond per the Rules 61G4-15.006 and 61G4-15.0021, Florida Administrative Code.

Apply Now Financially Responsible Officer (FRO) - $100,000 Bond

When Is a Bond Required?

Florida law obligates a contractor to prove fiscal responsibility before becoming licensed. During the application process, the state will perform a credit check. If the credit score is 660 or higher, the applicant has sufficient evidence that they are fiscally responsible and will not require a bond. However, the bond is required for Division I and Division II applicants whose credit score is lower than 660.

The $100,000 FRO bond is required for any license where the financially responsible officer is not the primary qualifier. If the primary qualifier is not financially responsible for all construction matters of the business, then the business must appoint someone from within to be the financially responsible officer, which will then require the $100,000 bond.

How to Reduce the Contractor License Bond Amount

Although the license bond ranges from $10,000 to $20,000, Florida provides a chance to lower these rates. Any applicant who needs a bond may take a 14-hour financial responsibility class to cut their bond limits in half. Once the class is completed a Division I bond will cost $10,000 and Division II $5,000.

What Purpose Does a Contractor License Bond Fill?

A contractor license bond is used to protect the public and prove fiscal responsibility. Should anything happen, the bond will provide payment to any parties suffering monetary loss. This covers customers right away, but the contractor will still need to repay the claim to the surety company.

What Other Insurances Are Required?

The Construction Industry Licensing Board requires licensed contractors to carry general liability insurance. General and building contractors must carry a minimum policy of $300,000 liability and $50,000 property damage. All other contractors are required to hold $100,000 liability and $25,000 property damage.

A contractor must file workers compensation if they have one or more employees. If they have no employees they must file for an exemption with the Division of Workers’ Compensation .