Florida Construction License Bond

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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. 

Who Needs a Florida Construction License Bond?

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.”

Minimum Acceptable Credit Score

This has a contractor standing next to a credit score of 660 showing the minimum score needed to avoid a Florida Construction License Bond Requirement.

Contractors with Fico Credit Scores below 660 will need to provide a Florida Construction License Bond or other means to obtain a license.

What is the Required Amount of a Florida Construction License Bond?

This chart shows the required Florida Construction License Bond amounts for each type of license. The bottom is an image of construction tools and the top a picture of a Florida beach.

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.

How to Obtain a Florida Construction License Bond

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:


  • Company Name
  • Type of Entity
  • Address
  • Business Owner Name
  • Phone Number
  • Email Address

The contractor should also be prepared to select the term they want on the license bond.

What Does a Florida Construction License Bond Cost?

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 grayscale image of a contractor working. In front is a bright green text box showing the cost of Florida Construction License Bonds.

What Does a Florida Construction License Bond Guarantee?

A Florida Construction License Bond guarantees that the contractor will:

  1. Keep all laws and regulations of the state of Florida.
  2. Keep books, records and make reports and payments to the Florida Treasurer as required by law.

Canceling a Florida Construction License Bond

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.

Not Insurance

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.

Other Bonds

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.

Florida Contractor Divisions

Who Are Division 1 Contractors?

In Florida, Division 1 Contractors include the following:

  • General Contractors – A Contractor who may perform any type of work, except as otherwise expressly provided in 489.113.
  • Building Contractors – A contractor whose services are limited to construction of commercial buildings and single-dwelling or multiple-dwelling residential buildings, which do not exceed three stories in height.
  • Residential Contractors – A contractor who is limited to building, repairing or remodeling one, two and three family building.

Who Are Division 2 Contractors?

In Florida, Division 2 Contractors include the following:

  • Sheet metal contractor
  • Roofing contractor
  • Class A air-conditioning contractor
  • Class B air-conditioning contractor
  • Class C air-conditioning contractor
  • Mechanical contractor
  • Commercial pool/spa contractor
  • Residential pool/spa contractor
  • Swimming pool/spa servicing contractor
  • Plumbing contractor
  • Underground utility and excavation contractor
  • Solar contractor
  • Pollutant storage systems contractor
  • Specialty contractor
Account Executive at Axcess Surety
Glenn is dedicated to helping contractors get surety bonds and support. Glenn specializes in the construction industry with expertise in bids bonds, performance bonds and payment bonds. Glenn regularly published articles and resources for all things surety bonds.
Glenn Allen
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