Florida Surety Bond
A Florida surety bond guarantees principal owners and the public that services will be performed with excellence and security. Florida legally requires a variety of contractors and organizations to secure bonds to conduct business across the public service industry. Absolute Surety is a leading Florida bonding company. Apply easily online and take advantage of lowest rates. Browse the most common types of FL surety bonds, or contact us for a full list.
What Surety Bonds Are Needed In Florida?
There are three broad categories of mandatory bonds in Florida:
- License & Permit Bonds are required in order for certain types of business and professionals to operate legally within the state. Proof of bonding must be provided in order to acquire a new license or permit or to renew an expiring one.
- Contractor Bonds, such as bid bonds or performance bonds, are required by certain cities and municipalities for contractors who want to work on public construction projects.
- Court Bonds are required for people involved in certain legal proceedings. These may be necessary in cases such as appealing a court decision or for those who have fiduciary responsibilities, such as serving as executor of an estate or as guardian of a minor.
Understand that you are responsible for obtaining and renewing any required bond and for repaying the surety company for any valid claims paid out against your bond.
Florida License & Permit Bonds
License and permit bonds are typically a statewide requirement imposed by a state agency, such as the:
- Florida Department of Highway Safety and Motor Vehicles, which requires a $25,000 surety bond for licensing as an independent motor vehicle dealer, wholesale motor vehicle dealer, motor vehicle auctioneer, or salvage motor vehicle dealer.
- Construction Industry Licensing Board (CILB), which issues both certified contractor licenses enabling contractors to work anywhere in Florida and registered licenses limiting contractors to working in specific local jurisdictions, and may require applicants to obtain a license bond.
- Florida Agency for Healthcare Administration (FAHA), which requires assisted living facilities and nursing homes to obtain surety bonds to protect against embezzlement or mishandling of residents’ income and funds.
A license and permit bond guarantees that you will conduct business in compliance with all relevant Florida regulations. Use our tool above to search for any bond(s) you need.
Florida Contractor Bonds
In addition to obtaining a license and permit bond, contractors may also be required by certain cities or municipalities to obtain a bid bond, performance bond, or other Florida contractor bond in order to bid, win, or work on public construction projects in that particular area.
Florida Court Bonds
The court with jurisdiction over any legal matter involving you will inform you of any Florida surety bond you may be required to obtain. Bonds are commonly required for those appealing a court decision or serving in a fiduciary capacity.
How Much Will A Surety Bond Cost Me In Florida?
The cost of a surety bond is calculated as a percentage of the required amount of the bond. This percentage is your bond premium rate. Bond premium rates typically are in the range of 1% to 15%, depending on the surety company’s underwriting rules and your personal credit history. The better your credit score, the lower your premium rate. Bond applications from people with bad credit aren’t necessarily rejected.
What Happens When A Claim Is Filed?
Uncontested claims must be paid by the surety company, and you will be responsible for repaying the amount paid out. Choose a surety company like Absolute Surety that will defend you, and be prepared to provide proof if the claim is not legitimate.