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Obligee: Florida Department of Business and Professional Regulation Surety Bonds

Florida Statement of Bonding Limits Bond

Florida Statement of Bonding Limits ($25,000) In order to obtain a Certified Electrical, Alarm System or Specialty Contractors license in the State of Florida, the applicant must submit a “Statement of Bonding Limits” in the amount of $25,000 from a Surety company.

Florida Talent Agency Bond

Florida Talent Agency Bond ($5,000) Talent Agency Bond- After applying to the Department of Business and Professional Regulation for a license to operate as a talent agency ,in accordance with the laws of the State of Florida, the principal must obtain a Surety Bond that guarantees compliance with all the laws and regulations governing the acts of talent agencies in Florida.

Florida Statement of Bonding Limits Bond

Florida Statement of Bonding Limits ($10,000) In order to obtain a Certified Electrical, Alarm System or Specialty Contractors license in the State of Florida, the applicant must submit a “Statement of Bonding Limits” in the amount of $10,000 from a Surety company.

Florida Contractor License Bond (Credit Score Below 660)

Florida Construction License Bond In the State of Florida a Surety Bond is required, by the Florida Construction Industry Licensing Board, for any person(s) engaging in work as a Contractor. This Bond is considered an “adverse selection” Bond as it only pertains to contractors with a credit score under (660). This Bond states that the Contractor must faithfully and accurately keep their books, records, and reports and will make such known to the Department of Business and Professional Regulation. The Bond must stay in effect until the Principal (Applicant) can demonstrate a FICO score of 660 or above.

If you are a business owner in Florida, you may have heard of the term “surety bond” in relation to the Florida Department of Business and Professional Regulation (DBPR). But what exactly is a surety bond and why is it required by the DBPR? In this article, we will explore the purpose of a surety bond for the DBPR and how it can benefit your business.

What is a Surety Bond?

A surety bond is a type of contract between three parties: the principal (the business owner), the obligee (the DBPR), and the surety (the insurance company). The purpose of a surety bond is to provide a guarantee that the principal will fulfill their obligations to the obligee. In the case of the DBPR, the surety bond ensures that the business owner will comply with all laws and regulations set forth by the department.

How Does a Surety Bond Work?

 

When a business owner applies for a surety bond, the surety company will evaluate the business’s financial stability and creditworthiness. If the business is deemed financially stable and creditworthy, the surety company will issue a bond to the business owner. The bond will then be filed with the DBPR as a form of security for the business’s operations.

In the event that the business owner fails to comply with the laws and regulations set forth by the DBPR, a claim can be made against the surety bond. If the claim is found to be valid, the surety company will compensate the obligee for any damages incurred. The business owner is then responsible for reimbursing the surety company for the amount paid out.

Why is a Surety Bond Required by the DBPR?

The DBPR requires certain businesses to obtain a surety bond as a form of protection for consumers. The bond ensures that the business will operate in accordance with all laws and regulations set forth by the department. This is especially important for businesses that have a direct impact on the health, safety, and welfare of the public.

What Businesses Need a Surety Bond from the DBPR?

The DBPR requires a surety bond for a variety of businesses, including:

  • Contractors
  • Real estate brokers and sales associates
  • Talent agencies
  • Athlete agents
  • Home inspectors
  • Auctioneers
  • Motor vehicle repair shops
  • And more

If you are unsure if your business requires a surety bond from the DBPR, it is best to check with the department directly or consult with a licensed surety bond provider.

Benefits of a Surety Bond for the DBPR

Obtaining a surety bond from the DBPR can provide several benefits for your business, including:

Compliance with Laws and Regulations

 

By obtaining a surety bond, your business is ensuring compliance with all laws and regulations set forth by the DBPR. This not only protects the public but also protects your business from potential legal and financial consequences.

Increased Consumer Confidence

Consumers are more likely to trust and do business with a company that has a surety bond in place. This is because the bond provides a level of assurance that the business will operate ethically and in accordance with all laws and regulations.

Protection for Your Business

In the event that a claim is made against your surety bond, the surety company will handle the claim and provide compensation to the obligee. This protects your business from having to pay out of pocket for any damages incurred.

Competitive Advantage

Having a surety bond can give your business a competitive advantage over other businesses that do not have one. This is especially true in industries where a surety bond is required by the DBPR. Consumers may be more likely to choose a business with a surety bond over one without, as it provides an added layer of protection and trust.

How to Obtain a Surety Bond required by the DBPR

To obtain a surety bond for the DBPR, you will need to follow these steps:

1. Determine the Type of Bond You Need

The first step is to determine the type of bond required by the DBPR for your specific business. This information can be found on the DBPR website or by contacting the department directly.

2. Find a Licensed Surety Bond Provider

 

Once you know the type of bond you need, you will need to find a licensed surety bond provider. It is important to choose a reputable and experienced provider to ensure the bond is valid and meets all requirements set forth by the DBPR.

3. Apply for the Bond

After selecting a surety bond provider, you will need to complete an application for the bond. The provider will evaluate your business’s financial stability and creditworthiness before issuing the bond.

4. Pay the Premium

Once the bond is approved, you will need to pay the premium. The premium is a percentage of the total bond amount and is based on your business’s financial stability and creditworthiness.

5. File the Bond with the DBPR

After the bond is issued and the premium is paid, the bond will need to be filed with the DBPR. This can typically be done electronically through the department’s website.

Conclusion

A surety bond is a necessary requirement for certain businesses in Florida, as mandated by the DBPR. It provides a level of protection for consumers and ensures that businesses operate in accordance with all laws and regulations set forth by the department. By obtaining a surety bond, your business can gain a competitive advantage, increase consumer confidence, and protect itself from potential legal and financial consequences. If you are unsure if your business requires a surety bond, it is best to consult with the DBPR or a licensed surety bond provider.