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Florida Bonds

Bond Quote Request
Florida Bonds

Most people don’t get a bond unless somebody requires them to. This is because it typically benefits that person and involves a third party guarantor (the Surety company). In that way, it is very different from insurance and require a special skill set and experience apart from standard insurance agent work.

Bonds are essentially a prequalification process where relationships are highly valuable and deeply important in the success of all parties. They are built on trust and experience, making a bond agent a highly valuable resource in reaching work that is unobtainable to others who were less willing to put in the effort.

Florida Bonds fall into three main categories-

  • Contract- guarantee completion of a contract, often a construction contract
    • Typical starting rates for these are 3% of the contract costs. Over time, a bond program can be established to improve those rates or create a tower-like structure based on contract size
    • Qualifying for a contract bond can be an in-depth process but many programs now offer eligibility for smaller bonds (up to $1million) based on personal credit. Larger programs will get more involved in analyzing the business on Character, Capital, and Capacity.
  • Commercial- guarantee of a requirement such as license issued by a state or municipality. A large variety of bonds, thousands spread across the country, fall into this category.
    • These are typically a flat rate annually based on credit, often between $100 - $1000
    • Some voluntary bonds can fall into this, called “business services” bonds. Plumbers, Cleaners, and others may have this bond
  • Fiduciary – guarantees proper handling of funds. An example is the sponsor of a retirement plan who gets an ERISA bond for money related to the plan.
    • These again typically a flat rate based on credit

A small handful of agents in the country have the experience we have with bonds. In the 80’s we pioneered a bond program helping small businesses expand into larger projects. Coupled with this existing experience, our owner worked in the corporate arena providing bonds to contractors doing hundred-million-dollar projects. We can help you navigate this difficult field and help take your business to the next level of growth.

Serving Florida with all your bond insurance needs

Florida bonds are designed to provide guarantees for work or services to be performed. The agents at Norton Insurance of Florida can provide a wide range of bonds to find the right fit for your business. Contact us to find out more about surety bonds in Fort Walton Beach Florida including the Crestview, Destin, Miramar Beach, Niceville, and Santa Rosa Beach areas.