Florida
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A Florida surety bond is a contract put in place to protect the government and its citizens from an individual or business that might try to cheat them out of a service that they owe.
For example, a contractor completing a construction project for a federal building would have to purchase a bond to ensure that they complete the project to the client's satisfaction. If the project is not completed, the client — in this case, the federal government — could file a claim with the surety who sold the bond to the contractor. The client would then be financially compensated according to the terms of the bond.
Buying a surety provides you with surety credit and lets your client know that your services will be legitimate. Working without a surety solution may require you to put up some of your assets as collateral, which will lower your liquid assets and leave you without any legal protection should a claim be filed against you. Even though purchasing a surety is required by law in many cases, it is still in your best interest to have one even when it is not.
Common Florida Surety Bonds
A Florida surety bond is a contract put in place to protect the government and its citizens from an individual or business that might try to cheat them out of a service that they owe.
For example, a contractor completing a construction project for a federal building would have to purchase a bond to ensure that they complete the project to the client's satisfaction. If the project is not completed, the client — in this case, the federal government — could file a claim with the surety who sold the bond to the contractor. The client would then be financially compensated according to the terms of the bond.
Buying a surety provides you with surety credit and lets your client know that your services will be legitimate. Working without a surety solution may require you to put up some of your assets as collateral, which will lower your liquid assets and leave you without any legal protection should a claim be filed against you. Even though purchasing a surety is required by law in many cases, it is still in your best interest to have one even when it is not.
Common Florida Surety Bonds
Contractors Bond
Auto Dealer Bond
Insurance Adjuster Bond
Telemarketing Bond
Farm Products Broker Bond
Auctioneer Bond
How do I purchase a Florida surety bond?
NFP, the nation's largest and most reliable surety company, is authorized to issue many different types of surety bonds in Florida. We can provide the best rates for your bond, as well as the fastest issuance, to get your business off and running.
Our short online application makes it easy. Click below to start the application process today.
Florida Surety Bond FAQs
A surety bond is basically a promise between three parties: You (the principal), the state or agency requiring the bond (the obligee), and a surety company that backs the bond.
In Florida, you might need a surety bond for all sorts of reasons: getting a contractor license, opening an auto dealership or registering as a public adjuster. The bond guarantees that you’ll follow state rules and regulations.
It depends on the type of bond and your credit score. Here are a few examples:
- A Florida contractor license bond (for Division II contractors) typically has a required amount of $10,000, but if your credit is poor, the state might require $20,000 instead.
- A Florida auto dealer bond requires $25,000.
- A Florida public adjuster bond requires $50,000.
- If you have great credit, you might only pay 1 to 3% of the bond amount. With lower credit, that could go up to 10 to 5%.
Some bonds are term-limited, like a notary bond, which is valid for four years, the same as the commission term. Others, like auto dealer bonds or contractors bonds, are often renewed annually.
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