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Common Surety Bonds in Florida

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How to Get a Surety Bond in Florida

Most people think of beaches, but there are many more interesting facts about this Sunshine State. For example, did you know that Florida is the third-largest state in terms of population? It’s true! The top five industries in Florida include tourism and hospitality, real estate development/construction, agriculture & fisheries production (especially citrus fruit), healthcare, and retail.

Florida is also home to over 100,000 businesses!

With so many different businesses in FL, it’s no question there’s a likely chance that you may need to be bonded.

A surety bond is an agreement between three parties: the surety company, your business, and a third party who needs protection (usually the state). It’s a type of insurance that provides financial security if your business fails to meet its contractual obligations.

A Florida bond is a financial instrument that guarantees the performance of a company or individual when they enter into an agreement with another entity. They can be used by businesses, individuals, and government agencies for many purposes.

There are several types of Florida surety bonds, and the bond type you need will depend on your business. Some bonds are Florida required by the state, but many more are optional. It’s important to understand exactly what required bond is needed for your industry before you apply so that you only have to get one.

What is a surety bond? How does a surety bond work?

It’s a type of contract that safeguards another party from financial loss. In the case of surety bonds, there are three parties:

  • Principal (the person or business which needs to secure their liability)
  • Surety (a third party, often an insurance company, who agrees to assume responsibility for the debt and acts as guarantor)
  • Obligee (the person or business for whom the surety bond is being issued)

To issue a Florida bond, both parties agree to the terms and conditions of a contract that carries an obligation to perform. These are usually written into an agreement that ensures compliance with state laws regarding bonds required in Florida. The details covered include:

1) Principal’s ability to perform a service and or repay a debt if necessary
2) Surety’s obligation should they become financially liable because the Principal fails to meet their obligations under the contract

The important thing about a surety bond agreement is that all Principals and the approved Surety insurance company in Florida act as guarantors; however, the bonding company will be responsible for payment due to defaults on contractual agreements under the bond. The bond allows the surety company to seek repayment from the Principal if a claim is valid.

What is a surety bond used for?

Whats a surety bond you ask? Well, it guarantees an agreement between three parties by securing the obligation in that it is used to:

– To secure performance on contracts;
– Guarantee compliance with contract specifications and standards;
– A warranty against defective products;
– Secure licensed professionals such as mortgage brokers

When do you need a surety bond?

Surety bonds are a form of performance security or financial guarantee issued by an insurance company. They are required for a variety of financial transactions, from government procurements to import and export. In the United States, bonds have been used since 1749 to guarantee that a party will fulfill its obligations under a contract or agreement.

Florida bonds work as an integral part of any business’s success! Typically a transaction, contract, or professional licensing requirement will indicate if a performance bond, payment bond, contract bond, license and permit bonds, or another type of bond is needed.

What are contract bonds?

The largest category of Florida surety bond is called contractor bonds, or bonds specific to the construction industry. FL contractor bonds are one of the largest markets in the state. Contractor surety bonds more commonly are performance bonds, bid bonds, and payment bonds. Construction bonds account for approximately 70% of all bonds written in the USA.

Required by residential and commercial contractors both big and small, general and across specialty trades. Florida surety bond requirements vary by municipality and ensure the protection of the public and consumers via performance bonds for public projects and various trade bonds.

Can I get a surety bond online?

Yes. At Simpli Surety, we have 1000’s of instant issue surety bonds available to our clients on-demand at low surety bond rates. Our surety bond experts are here to help.

If you are looking for surety bond cost, the good news is that it’s not as expensive as most people think. Across the industry, Surety bond costs can range depending on the type and terms of the bond. The fee is calculated, also called the surety bond premium, as a percent of the total coverage needed or bond amount, usually ranging anywhere from 1% to 3%. For instance, straightforward license and permit bonds tend to fall on the lower end of the spectrum even below 1%. While a more complex performance bond for a large construction project that carries a higher risk and bond amount, therefore, the surety bond cost can range higher between 1.5% to 2.5% on average. 

Surety bond costs could be higher or lower depending on your surety company, the type of work you are doing, and other factors. If you need help determining how much a surety bond will cost for your specific situation, use our search to find the instant issue bonds you need, and often the surety bond cost and bond amount are listed on the application.

At Simpli Surety, we have 1000’s of instant issue surety bonds available to our clients on-demand at a low surety bond rate. The application and approval process is completed quickly, so you can get back to your business. 

On the rare occasion, your bond application requires additional underwriting, our surety bond agents with over 40 years of experience will step in to help.

Florida is also a popular place for retirees to move to because of the low crime rate and warm weather! It’s easy to see why this state has such a thriving economy and beautiful natural attractions. Other popular tourist destinations include Miami Beach, Daytona Speedway, Key West, and Busch Gardens Tampa Bay. Tourism isn’t all there is to do in Florida though! Some other popular industries include banking, healthcare, and pharmaceuticals. The main industry in Florida is tourism. The state has a wide variety of attractions that draw visitors from around the world, including Disney World and Universal Studios.

Large or small, many of these industries require companies to obtain bonds in order to operate. A Florida surety bond functions as a contract between your business and surety company that guarantees the fulfillment of obligations under specific conditions. This means that surety bonds provide protection against losses resulting from the inability to fulfill contractual agreements on time with customers, clients, or suppliers.

If you are looking for bonded protection, there are a few things to keep in mind. Surety bonds are not always one-size-fits-all. The bond cost and terms of a surety bond will vary depending on the risk involved with your business and industry.

Business owners in Florida can get bonded for their businesses to help protect the company’s assets and employees, as well as ensure that industry laws are upheld by all parties involved. Businesses need a certain amount of financial backing before they start operating; this is where surety bonds come into play.

Businesses that operate under the authority of federal or state law need a surety bond. These businesses include but are not limited to: banks and other financial institutions; securities brokers and dealers; insurance companies; investment advisors and planners; motor carriers (such as trucking companies); and business of public utilities.

Additionally, businesses who contract for construction work, including developers/builders; architects; professional engineers; contractors; subcontractors; suppliers of materials used in construction; and businesses involved in design-build projects all need a surety bond.

All in all, the industries of Florida are vast and diverse…if you’re looking for a surety bond required for your business there is no better place than Simpli Surety!

How do you get bonded in Florida?

In order to bond Florida businesses, you will need to contact surety bond companies that are licensed in the state, such as Simpli Surety. You will then be required to fill out a surety bond application and submit it along with all relevant documentation. Some applications may require additional documents like proof of business bank account balances or your articles of incorporation (bylaws), but Simpli Surety has many instant bonds available in minutes.

If you are approved for coverage, the surety bond company will issue you a policy and send it to you via email. The policy will outline the terms and conditions of your bond as well as the surety company’s responsibilities.

Why would I need a surety bond in Florida? You may need a surety bond in Florida for your business if you are opening up shop as an independent contractor or self-employed.

A surety bond in Florida is a common requirement for many types of businesses including cotton merchants, public adjusters, and mortgage companies.

Surety bonds are financial guarantees that you promise to abide by the terms of an agreement. Other reasons why businesses may require these include:

– To qualify for a license
– Government contracts
– Bonding construction projects
– Organizing as a corporation or limited liability company (LLC) in Florida

What surety bonds are common in Florida?

There are a few surety bonds Florida requires. The most common surety bond is the commercial surety bond. This type of bond is used for businesses that want to get a license, or for companies that need to show financial responsibility. There are also many types of performance bonds, including construction and contract bonds. Each type of bond has its own purpose and is required for different activities.

Another common surety bond in Florida are license and permit surety bonds. These may be required for a company that needs to get a business or professional license from the state of Florida, as well as any other type of permit. Some examples include contractors, financial institutions, utility companies, and public service corporations. The final category that is important for companies to understand in Florida is the court surety bond. These can be required when a company needs to appear before a court and present evidence, such as real estate agents and collection agencies.

The types of businesses that typically need surety bonds in Florida include:

– Securities brokers and dealers for financial and professional regulation compliance
– Insurance companies
– Investment advisors and planners
– Motor carriers (such as trucking companies)
– Business of public utilities
– Developers/builders
– Architects
– Professional engineers
– Contractors
– Subcontractors
– Freight Brokers
– Suppliers of materials used in construction

Is it easy to get a bond in Florida?

It actually is! The state of Florida has made it really simple and fast to apply. If you choose to get your bond online, the process can be completed within minutes!

What are the minimum bonding requirements in Florida?

The amount of money required as bonding needs in Florida ranges depending on the industry and type of contract or agreement you plan to enter. There is no minimum amount for this type of bond, but our surety expert partners have to be compensated for any losses they incur on your behalf, so the higher the bond amount – the better protection you get!

Which government agencies require surety bonds in Florida?

A Florida bond is required by a number of government agencies, including the:

– State Board of Administration
– Department of Agriculture and Consumer Services (Division of Corporations)
– Commission on Independent Education
– Department of Financial Services
– Department of Health
– Department of Highway Safety and Motor Vehicles
– Department of Management Services
– Department of Revenue
– Florida Fish and Wildlife Conservation Commission
– Secretary of State
– Florida Department of Agriculture
– Veterinary Medicine Board
– The Department of Insurance (for insurance companies)
– Florida Gaming Board

The types of surety bonds that are required vary depending on the agency. There are surety bond requirements for other government agencies in Florida, but the above are some of the most common. Be sure to check with your specific agency to find out their specific bonding requirements.

What are the most popular types of surety bonds in Florida?

There are three main types of Florida surety bonds: performance, payment, and indemnity. A performance bond guarantees that the contractor will complete the project as specified in the contract. A payment bond guarantees that subcontractors, specialty contractors and suppliers will be paid for their work on the project. An indemnity bond protects the owner of a property from any third-party claims arising from the contractor’s work on a project.

Florida surety bonds are required for many different types of projects. Some examples include:

– Construction or repair work at schools, colleges and universities
– Any public works project that requires a bid process in Florida
– Contractor’s licenses
– Fidelity Bonds (Fid Bond or Court bonds) – Protects businesses from financial loss or damage caused by employees’ dishonesty or failure to perform their job duties.
– Bid Bonds – Protects the state or other public agencies from financial loss if a contractor fails to complete work as contracted.
– License and Permit Bonds (Permit Bond) – Required by local governments in Florida that issue licenses, permits, etc., for various types of business activity

Most popular surety bonds include:

– Florida Notary Bond
– Florida Title Agent Bonds
– Florida Insurance Producer Bonds
– Florida Recreational Vehicle Dealer Bonds
– Florida Mortgage Broker Bonds
– Florida Court Bonds or Fidelity Bond
– Florida Auto Dealers Bond
– Florida License bond

Florida has a major construction industry that requires performance guarantees in the form of surety bonds to protect against failing to meet deadlines. There are also many contractors who require bond protection for their employees – especially when they’re working on bridges, tunnels, or other public works and public construction projects.

What other surety bonds are common?

Common across all states is the forever mainstay Construction industry. As a large and populous state, contracting is big business. Required by residential and commercial contractors both big and small, general and across specialty trades. Florida’s bonding requirement varies by municipality and trade but all ensure the protection of the public and consumers via performance bonds for public projects.

The best surety company in Florida is us! SimpiSurety has all of these bonds and more FL surety bonds available instantly. Search for your bond and apply online in minutes.

Although, whomever you choose, be sure they are a licensed surety bond agency in Florida that can help you get bonded for the right bond amount. All surety companies are not the same, so choose wisely when choosing your Florida bonding agent.

Contractor license surety bonds aren’t only state mandated bonds for businesses. In fact many industries and professions that require licensing or the proprietor to register their business with a state commission or regulatory body require a surety bond, including:

  • FL – Mobile Home Dealer ($25,000) – The Mobile Home Dealer Bond guarantees purchasers that the mobile home dealer will be trustworthy and deliver high-quality services. The bond assures clients that the mobile home dealer is competent to offer excellent service and compliance with law, as well as payment of tax and, in some circumstances, judgments. Buy Now
  • FL – Title Agent ($35,000) – All title agencies that conduct operations such as title insurance, title searches, and others must have a Florida Title Agency Surety Bond. The Florida Title Agency Surety Bond protects the title agency from acting in violation of any of its agency contracts or state laws. Buy Now
  • Florida Motor Vehicle Dealer (New or Franchise) ($25,000) – In order to operate a business of acquiring, selling, or dealing in motor vehicles or displaying vehicles for sale, the Florida Department of Highway Safety and Motor Vehicles Division of Motorist Services requires auto dealers (both used/independent dealers and franchise/new dealers) to post a surety bond. Buy Now
  • FL – Recreational Vehicle Dealer – A $10,000 surety bond is needed to obtain recreational vehicle dealer licensure in Florida, single dealers with four or fewer supplementary licenses must post this security. Buy Now
  • Florida – Construction License ($20,000) – A surety bond for an auctioneer is a government-mandated license and permit bond that individuals seeking to obtain an auctioneer’s license must post. The bonds guarantee the individual will follow appropriate business practices and protect the public from fraud or unlawful conduct by allowing them to pursue legal action if they have been unfairly treated. Buy Now
  • Florida – Agricultural Products Dealer– The Department of Agriculture and Consumer Services’ Animal and Plant Health Inspection Service (APHIS) mandates agricultural dealer bonds, which ensure that farmers who produce agricultural goods are correctly compensated. All persons who buy, sell, get, solicit, handle, or negotiate agricultural commodities from or for Florida producers in the state must procure this bond. Buy Now
  • Florida – Auction Business ($25,000)– A surety bond for an auctioneer is a government-mandated license and permit bond that individuals seeking to obtain an auctioneer’s license must post. The bonds guarantee the individual will follow appropriate business practices and protect the public from fraud or unlawful conduct by allowing them to pursue legal action if they have been unfairly treated. Buy Now
  • Florida Seller of Travel Bond– The FTC requires that any seller of travel with a business location in Florida or who sells travel-related services to individuals in Florida comply with the law and procure this bond. A vendor of travel is defined by the State of Florida Division of Consumer Services as “any resident or nonresident person, firm, corporation, or business entity who offers for sale, directly or indirectly. Buy Now

For all Florida Surety Bonds and Federal Bonds, use the search atop this page or Click for More Bonds below.

  • Freight Broker Bondsoften referred to as BMC-84 bonds, are a Federal as opposed to state mandate made by the Federal Motor Carrier Safety Commission to conduct business as transportation brokers. Coverage to $75,000. Buy Now
  • Durable Medical Equipment Provider Bonds – often referred to as DMEPOS bonds are required of suppliers of prosthetics, orthotics, and durable medical equipment. A federal mandate per the Centers for Medicare and Medicaid Services to mitigate Medicate billing fraud. Min bond requirement of $50,000 per National Provider Identifier needing Medicate billing authorization. Buy Now
  • Performance Bonds – this bond covers general performance obligations related to a contract but most often ensures the satisfactory completion of performance by a contractor. The bond penalty is tied to contract value and can be mandated at federal, state, or municipal levels. Buy Now
  • Bid Bonds – a construction bond that protects the developer or project owner of a construction project during the bidding process. It guarantees them that if the bidder can or will not honor the terms of the bid, the owner will be compensated. Bid bonds are commonly required on projects that also involve performance bids and payment bonds. Buy Now
  • Payment Bonds – these surety bonds are often paired with performance bonds ensuring prompt payment to suppliers and subcontractors on the project. This signals to the owner, supplier, and sub that the contractor will be compliant in working with them to completion and paying on time. Buy Now
For all Federal and Florida Surety Bonds, use the search atop this page or Click for More Bonds below.

What is a surety bond? 

A surety bond is an agreement between 3 parties, the principal applying for the bond, the Obligee who benefits from the bond and the Surety, the provider of the bond. A licensed surety agency like Simpli Surety is required to act on behalf of the 3 parties to facilitate the bond issuance. 

The bond itself ensures the principal will carry out its obligations to the Obligee that acquires their services, in accordance with the conditions of a contract. 

The surety company steps in to financially back the Obligee in the event the principal defaults, violates terms or fails to fulfill its obligation. If the surety pays a claim, it seeks reimbursement from the principal. 

How do I get a bond? 

At Simpli Surety, we’ve taken the sometimes antiquated surety bonding process and made it…well…simple. What takes many brokers and online agencies days, we’ve automated to get your bond fast. From search to submission to getting a bond in your inbox in less time than finishing a cup of coffee. 

  1. 1) Use our Search tool to find your bond. 
  2. 2) Enter the key information and click submit. 
  3. 3) A decision is rendered within minutes. 
  4. If approved, you’ll be sent a payment link and documents to sign electronically. If not approved, our underwriters will alert you of next steps. Sometimes we just need a few more pieces of info to complete the analysis but in most cases, its automated and effortless. 
  5. Your bonds are emailed to your and the Obligee. It’s that fast…and simple. 

Why Simpli Surety? 

Simpli Surety is a licensed surety bond agency. Our bond professionals have been in the industry for over 40 years. Most online surety bond agencies only provide a quote range, then needing to shop various surety carriers for the bond. This makes the surety bonding process longer and tedious. 

Simpli Surety requires basic underwriting information and as soon as you click submit, in most cases we render a decision right away. If approved, simply purchase with a credit card and you’ll have your bond emailed to you and the obligee (beneficiary or regulatory authority) in minutes. 

Our instant issue rates are the most competitive in the business. And for more complex bonding situations, our experts will step in and provide a bespoke solution. 

Click here for our information center to learn more, or link to more FAQs.

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