FOR ALL YOUR SURETY BOND NEEDS.
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. Single Source Insurance 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.
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Florida regulates the licensing of construction contractors and the way they conduct business in an effort to protect the state and its consumers. You can become licensed as a general contractor at the state level, which allows you to operate anywhere in the state, or you can obtain a local general contractor�s license that will allow you to do business in that specific jurisdiction.
Whether you opt for a state license or a local one, the licensing process is handled by the�Florida Construction Industry Licensing Board, which is part of the Florida Department of Business and Professional Regulation (DBPR). For contractors with a FICO score below 660, the licensing process involves the purchase of a contractor license bond as a guarantee that you will abide by all applicable laws, rules, and regulations, and uphold construction industry standards.
Florida contractors� licenses are divided into Division I for general building and residential contractors and Division II for specialty contractors. They are further designated as either:
Other types of construction bonds (e,g,�bid bonds, performance bonds, payment bonds) may be required, usually at the municipal level, for contractors who want to work on publicly-funded projects. These bonds, like a license bond, guarantee that you will operate in a lawful and ethical manner, for the protection of the project owner and taxpayers.
If your FICO score is less than 660, you will be asked to purchase a contractor license bond (or irrevocable letter of credit) as a condition for licensing. You can obtain detailed information on the specific requirements that apply to you by visiting DBPR�s�Financial Responsibility and Stability or by speaking with an Single Source Insurance agent. The required bond amount is $20,000 for Division I contractors and $10,000 for Division II contractors.
If you�re bidding on a public works project in a specific local jurisdiction, you�ll be informed as to what construction bonds you�ll need to obtain and in what amount.
If you violate any of the terms and conditions of any type of Florida construction bond, the party that required you to obtain the bond (the obligee in the surety bond agreement) can file a claim against your bond. As the principal in the bond agreement, you are legally responsible for paying claims. However, the company that issues the bond (the surety), upon determining that a claim is valid, may pay it in advance on your behalf. You are then required to reimburse the surety for the amount paid out on the claim.
The annual premium for a surety bond is calculated as a small percentage of the required bond amount, which varies from bond to bond. This premium rate is based on your personal credit score and personal and business financial strength and stability. For those with good credit, you may be assigned a premium rate anywhere between 1% and 3% of the required bond amount.
Our experts are well versed in the complexities of Florida construction bonding and will get you the bonds you need at the best possible rate. Request a quote online today!
