The Six Most Common Types Of Florida Surety Bonds
Florida’s allure is much deeper than just the balmy weather and it’s beaches. Florida boasts one of most booming business-friendly environments in the United States. Florida also offers access to some of the largest and most diverse U.S. markets for services in the world. Therefore, Florida is also a great place to start a business. So, you’ll probably need to get one the many Florida surety bonds the state requires if you are going to start a business here.
Florida surety bonds provide protection for everyone involved in a deal. They provide a financial guarantee that businesses will follow relevant laws and ethical standards. Turbo Surety Bonds offers dozens of different types of Florida surety bonds to our customers. We offer fast and easy quotes. We also offer affordable premiums and friendly service.
In this article, we’ll give a quick summary of the six most popular Florida surety bonds.
Florida Surety Bonds For Building Contractors
Florida contractors are required to obtain a Florida contractor surety bond to get a contractor’s license. If a contractor has a FICO score below 660, they will first need to obtain a Florida contractor license surety bond. However, unlike most bonds in Florida, there is not a set penalty sum of the surety bond. Thus, the bond amount varies. A Division 1 is for general residential and commercial contractors. Whereas, a Division 2 contractor is for specialty contractors such as roofers and pool builders.
Many Florida counties and municipalities require additional surety bonds for contractors. Some these carry penalty sums of up to $25,000. Contractors with designated Financially Responsible Officers must also file Florida Financially Responsible Officer bonds.
Florida Surety Bonds For Public Insurance Adjusters
Public insurance adjusters prepare, file, and negotiate disputed insurance claims for their clients. To get a Florida public insurance adjuster license, an applicant must first obtain a Florida adjuster license bond. Additionally, applicants must take the Florida Certified Adjuster course. They must also pass the state exam. The adjuster must get a Florida surety bond that must cover a penalty sum of $50,000.
Florida Dealers License Surety Bonds
Florida motor vehicle dealerships are required to obtain a Florida motor vehicle dealer surety bond before the state will issue a Florida dealer license. The motor vehicle dealer surety bonds guarantee that a dealer will represent all vehicles’ condition accurately and pay all applicable taxes. In addition, the dealer will generally obey Florida vehicle sales laws.
Each different type of dealership requires a different bond. including. The state of Florida requires different bonds for different types of dealers:
- Independent used-vehicle dealerships.
- Mobile home and RV dealer bonds.
- Franchise dealership bonds, and
- Salvage dealership bonds.
The state of Florida requires that all dealer bonds to cover a penalty sum of $25,000.
Florida Yacht and Ship Broker Surety Bonds
Florida has over 8,000 miles of coastline. This means that there a lot of people that want to buy boats and yachts.
So it’s no surprise that boat and yacht sales are a popular business. As a result, the state of Florida wants to ensure that yacht and ship brokers follow the law. Therefore, any business that sells yachts or ships is required to apply for a Florida yacht and ship broker license.
As part of the licensing process, the broker must obtain a $25,000 Florida yacht and ship broker surety bond. Individual yacht salespeople may also be required to obtain a $25,000 Florida yacht salesperson bond.
Freight Broker (BMC-84) Surety Bonds
Florida’s proximity to Latin America also make it a logistics hub for international trade. That includes freight brokers. What are freight brokers? They are businesses that broker and coordinate cargo shipping through third-party logistics carriers.
The Federal Motor Carrier Safety Administration requires each freight broker to obtain a BMC-84 surety bond. BMC-84 surety bonds come with a penalty sum of $75,000.
This penalty sum is to ensure compliance with applicable federal laws. Alternatively, freight brokers may create a $75,000 BMC-85 trust through a financial institution. Yet, BMC-84 surety bonds remain a popular option due to their lower upfront cost.
Florida Seller of Travel Surety Bonds
The vacation and travel industry have long been among Florida’s biggest industries.
As a result, travel agents and any other businesses that sell pre-arranged tours or vacation packages must register with the state government each year. Therefore, they must also obtain a $25,000 Florida seller of travel surety bond.
For businesses that sell vacation certificates, the penalty sum is increased to $50,000. Florida also requires the business must pay an additional $100 fee when registering with the state.
Turbo Surety Group Is Here To Help You Get The Surety Bond You Need
The process for getting a surety bond in Florida can be simple and painless when your business works with Turbo Surety Bonds. Our experts are ready to answer your questions. You can also just call us at 1-833-436-7987 or email us today.