1. Introduction
In Florida’s competitive construction industry, financial integrity is paramount. The Financially Responsible Officer (FRO) ensures payroll, tax remittances, and vendor payments are managed properly. To demonstrate this commitment, Florida law requires every licensed contractor to designate an FRO and post an FRO Bond before the Department of Business and Professional Regulation (DBPR) will issue or renew a license. This post explains the essentials of FRO Bonds, who needs one, the requirements under Florida law, and how Lexington National Insurance simplifies the process.
2. What Is an FRO Bond?
An FRO Bond is a three-party surety agreement among:
- Principal: the individual appointed as FRO
- Obligee: the Florida Construction Industry Licensing Board (under DBPR)
- Surety: the bond issuer (Lexington National Insurance)
By posting this bond, the Principal guarantees compliance with both Chapter 455 of the Florida Statutes and Chapter 489 of the Florida Statutes. This legal framework underpins professional licensing (Ch. 455) and contracting regulations, including bonding requirements (Ch. 489).
3. Why Florida Requires FRO Bonds
- Safeguarding Subcontractors & Vendors
Ensures that those who perform work or supply materials receive payment even if the contractor faces cash-flow issues.
- Protecting Public Revenues
Guarantees timely remittance of state and local taxes related to construction activities.
- Maintaining Professional Separation
Separates financial oversight (FRO) from technical and field supervision (Primary Qualifying Agent), promoting clear accountability.
4. Who Must Post an FRO Bond?
- Contractors with a Designated FRO
Any contractor who appoints an FRO must secure the bond before DBPR approves or renews the license application.
- Bond Amount Tiers
- $100,000: Standard requirement for appointments on or after February 1, 2007
- $50,000: Grandfathered rate for FROs appointed prior to February 1, 2007
- No Dual Roles
An FRO may not simultaneously serve as the Primary Qualifying Agent, ensuring a clear separation between financial responsibility and technical licensure.
5. Key Bond Requirements
| Requirement | Details |
|---|---|
| Amount | $100,000 (or $50,000 if appointed pre-Feb 1, 2007) |
| Term | Continuous—remains in effect while the officer holds the FRO role |
| Filing | Original signed bond (Form CILB-8) submitted via DBPR’s Application Center before license issuance |
6. Streamlining Your FRO Bond with Lexington National
- Efficient Application
Our streamlined online form and indemnity agreement eliminate unnecessary paperwork.
- Rapid Turnaround
Most bonds are bound and delivered within 24–48 hours of approval.
- Dedicated Support
A single point of contact guides you through DBPR’s portal, ensuring your bond and application are error-free and compliant.
- Expertise & Reliability
Backed by our A-rated balance sheet and deep surety knowledge, Lexington National delivers dependable bonding solutions tailored to your firm’s profile.
7. Next Steps & Contact Information
Ready to secure your FRO Bond? Contact Lexington National Insurance today:
- Phone: (516) 314-3637
- Email: Jake@lnic.com
Disclaimer: This blog post is for informational purposes only and does not constitute legal or professional advice. For guidance specific to your situation, please consult a qualified attorney or licensed surety professional.