What is a Financially Responsible Officer?
A Financially Responsible Officer is an owner of a construction company who is responsible for the finances of the company. Oftentimes, a Florida construction licensee is not an owner of the company they are qualifying and therefore, should not assume financial responsibility for the company. They are referred to as a qualifying agent. In this instance, the owner of the construction company will apply for and hold a Financially Responsible Officer License.
Who is Required to Purchase a Financially Responsible Officer Bond?
The state of Florida requires that Financially Responsible Officers complete an application with the state and obtain the required FRO bond in order to be licensed. This bond is separate from a Construction License Bond and must be paid for annually while the FRO License is active.
What is the purpose of the Financially Responsible Officer Bond?
The bond ensures that the general public will be reimbursed for any financial damage in the event that the construction company fails to adhere to the licensing regulations. In essence, the bond functions as a form of insurance that safeguards the public in case the construction company violates licensing laws.
In Florida, any construction company owner or officer who has to take on the financial responsibility of the business, needs to get licensed with the State of Florida Department of Business and Professional Regulation. As a part of the licensing, they need to provide a financially responsible officer bond. This ensures compliance with the 2014 Florida Statutes.
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