Get An Instant Quote on Florida – Construction License Bond Now
Florida – Construction License ($5,000) Bond | ![]() |
Florida – Construction License ($10,000) Bond | ![]() |
Florida – Construction License ($20,000) Bond | ![]() |
Florida Construction License Bonds are required for certain contractors in order to be licensed in the state of Florida.
According to the St. Louis Federal Reserve, there are over 612,000 contractors in the state of Florida. Contractors looking to be licensed or have their status changed in Florida will need to show financial responsibility to the state. To do this, they must submit a credit report from a national recognized credit agency to the Florida Construction Industry Licensing Board (The Board). A list of approved credit agencies can be found here. According to Florida Code 489:
“The credit report required for the initial applicant shall be considered the minimum evidence necessary to satisfy the board that he or she is financially responsible to be certified, has the necessary credit and business reputation to engage in contracting in the state, and has the minimum financial stability necessary to avoid the problem of financial mismanagement or misconduct.”
Contractors with Fico Credit Scores below 660 will need to provide a Florida Construction License Bond or other means to obtain a license.
Division I Certificate Holders require a Florida Construction License Bond of $20,000.
Division 2 Certificate Holders require a Florida Construction License Bond of $10,000.
Both Divisions can have the bond amount reduced by 50% for completing a 14 financial responsibility course approved by The Board. There are many companies offering these courses both online and in person.
Florida Contractor License Bonds can be purchased online instantly. These contractor license bonds do not require a credit check and can be purchased in minutes. A contractor will need the following information:
The contractor should also be prepared to select the term they want on the license bond.
Florida Construction License Bonds cost 1% of the bond amount per year for most contractors. For example, a $20,000 bond will cost $200 per year. Some bond companies do give discounts of up to 30% for purchasing multiple years in advance.
A Florida Construction License Bond guarantees that the contractor will:
The construction license bond must be in place until the contractor can show that their score has reached 660 or higher. Once that occurs, the contractor may submit to have their bond requirement removed and the bond can be canceled. However, the surety bond company’s liability does not cease for the time the company wrote the bond for the contractor, and claims could still be made for that period.
Contractors can find ways to boost their credit scores here.
Contractors should understand that Florida Construction License Bonds are not insurance. Should a claim occur against the bond, the surety bond company may seek reimbursement from the contractor under the indemnity agreement. Contractors can learn more about the differences between surety bonds and insurance here.
Most Florida contractor will also need other license and permit bonds. Many municipalities have their own license bond requirements. These bonds can also be purchased online at the Florida Surety Bond page.
Additionally, contractors performing commercial work may need contract bonds such as bid bonds, performance bonds, payment bonds and maintenance bonds. These bonds have very different guarantees, costs, and underwriting requirements than license bonds.
In Florida, Division 1 Contractors include the following:
In Florida, Division 2 Contractors include the following:
Axcess Surety is the premier provider of surety bonds nationally. We work individuals and businesses across the country to provide the best surety bond programs at the best price.
Address: 12288 S. Mullen Rd., Olathe, KS 66062