Do Florida contractors need a license bond?
Two different bonds get called a "Florida contractor license bond," and you may need one, both, or neither:
We issue most of these the same day.
Fastest way to your bond
Email adolfo@nextguardinsurance.com with: your license number and type (certified or registered), the county or city asking for the bond (or the DBPR letter), the business legal name and FEIN, and the owner's name and home address for the credit check. If you also need GL or workers' comp for the same license, send your current dec page and 3-year loss runs and we quote everything together.
| Bond | Who requires it | Amount | When you need it |
|---|---|---|---|
| Local contractor bond | County or city building department | Up to $5,000 | Before pulling permits in that jurisdiction; filed where you pull permits |
| Financial responsibility bond, Division I | Florida DBPR / CILB | $20,000 ($10,000 with course) | General, building or residential contractor with credit below 660 |
| Financial responsibility bond, Division II | Florida DBPR / CILB | $10,000 ($5,000 with course) | Roofing, plumbing, HVAC, pool and other Division II trades with credit below 660 |
| Bid, performance & payment bonds | Public owners and some private owners | Based on contract value | Public jobs over $100,000 generally require performance and payment bonds (§ 255.05, F.S.) |
The local bond protects homeowners: claims are payable to the Florida Homeowners' Construction Recovery Fund, and once you file it in one jurisdiction, state law grants reciprocity statewide. A contractor who provides a third-party insured warranty on a new building is exempt from the local bond for that building.
If your credit later rises to 660 or above, you can ask DBPR to release the financial responsibility bond requirement.
You pay a premium, not the bond amount. Local $5,000 bonds are usually a flat small premium. Financial responsibility bonds are priced on credit:
| Owner credit score | $5,000 local bond (per year) | $10,000 FR bond (per year) | $20,000 FR bond (per year) |
|---|---|---|---|
| 700+ | ~$100 – $150 | Not required | Not required |
| 650 – 659 | ~$100 – $150 | ~$180 – $250 | ~$360 – $500 |
| 600 – 649 | ~$100 – $175 | ~$300 – $400 | ~$600 – $800 |
| 550 – 599 | ~$125 – $200 | ~$400 – $500 | ~$800 – $1,000 |
| Under 550 | ~$150 – $250 | ~$600 – $800 | ~$1,200 – $1,600 |
Estimated annual premiums based on published Florida surety rates as of October 2026. Not a quote. Liens, judgments, bankruptcies and years licensed also affect the rate.
A license bond protects the public and the jurisdiction, not you. If a claim is paid, the surety will ask you to pay it back. To protect your business on the job you still need general liability and workers' comp: Florida general and building contractors must carry at least $300,000 public liability and $50,000 property damage to keep the license active, and construction employers need workers' comp from the first employee.
Notary bonds, auto dealer bonds, public adjuster bonds, mortgage broker bonds, freight broker bonds (BMC-84), and bid, performance and payment bonds for public and private projects.
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Local county and city contractor bonds are capped at $5,000 by state law and usually cost about $100 to $150 a year. DBPR financial responsibility bonds are $20,000 for Division I and $10,000 for Division II (half that with the approved course) and cost roughly 1.8% to 8% of the bond amount a year depending on credit.
Only in one situation: if the person responsible for the company's finances has a credit score below 660, DBPR requires a financial responsibility bond (or cash deposit) to license or keep licensing the contractor. Otherwise the bond requirement comes from local counties and cities, not the state.
Florida's Construction Industry Licensing Board requires applicants whose financially responsible officer scores below 660 to post a $20,000 bond (Division I) or $10,000 bond (Division II). Completing the board-approved financial responsibility course cuts the amount in half. If the score later rises to 660 or more, the requirement can be released.
Yes. Local $5,000 bonds are written for almost any credit, and financial responsibility bonds exist precisely for contractors under 660. Lower credit means a higher premium and sometimes a personal indemnity agreement, but most files are approved the same day.
Florida law grants bond reciprocity statewide for the local bond under § 489.131(3)(e), but each county or city may still ask you to file it with them before issuing permits. Ask the building department how they want it filed.
No. The bond protects homeowners and the jurisdiction, and the surety will seek repayment of any claim. General liability protects your business. Florida general and building contractors must carry at least $300,000 public liability and $50,000 property damage to keep the license active.
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