Florida Contractor License Bonds

February 18, 2021

Contractor license bonds protect the public from financial harm resulting from violations of licensing law committed by the contractor and their employees.

The State of Florida requires contractors to obtain specific surety bonds correlating with their license type. We have compiled comprehensive guides on these bonds to assist insurance agents in obtaining Florida contractor license bonds for their customers. Below are all of the contractor licensing bonds required by the State of Florida:

• Florida Construction Contractor 

  • Average Cost:
    • $5,000 bond amount: $100 – $400 per year, based on the license holder’s credit
    • $10,000 bond amount: $188 – $700 per year, based on the license holder’s credit
    • $20,000 bond amount: $376 – $1,000 per year, based on the license holder’s credit
  • Bond Amount:
    • $5,000 for select Division 2 Contractors (more on this topic below)
    • $10,000 for Division 2 Contractors
    • $20,000 for Division 1 Contractors
  • Who Needs It: All individuals and businesses that act as construction contractors in the State of Florida and who have a credit score of 660 or lower

• Florida Financially Responsible Officer

  • Average Cost: $750 – $1,000 per year, based on the applicant’s personal credit standing
  • Bond Amount: $100,000
  • Who Needs It: All individuals that act as a Financially Responsible Officer (“FRO”) for a construction company in the State of Florida

How Can an Insurance Agent Obtain a Surety Bond for Their Customer?

BondExchange makes obtaining a surety bond easy. Simply login to your account and use our keyword search to find the “contractor” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.

At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

What Other Insurance Products Can Agents Offer Contractors in Florida?

Florida does not require contractors to obtain any form of liability insurance. However, most reputable contractors will consider obtaining liability insurance anyway. Bonds are our only business at BondExchange, so we do not issue any form of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.