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Is bonding a form of insurance?

Being bonded is not insurance. It can be a little confusing when the terms bond insurance, surety bond insurance are being used, but being bonded is still not the same as being insured.

Who needs to be bonded in Florida?

In Florida, a contractor surety bond is often referred to as a general contractors license bond. This type of construction bond is required if you alter or build any structure. Contractors in good financial standing can get the $25,000 bond coverage required by the state for an annual premium of $125.

How much does it cost to get licensed and bonded in Florida?

Florida Contractor License Bond Requirements The required amounts for the different Florida contractor license type are the following: Division I license - $20,000. Division II license - $10,000. Division II license after completing a board-approved financial responsibility course - $10,000.

How much does it cost to get bonded in Florida?

The exact cost will vary depending on the surety bond amount required by the Florida Department of Highway Safety and Motor Vehicles. Bond amounts up to $6,000 cost just $100. Bond amounts from $6,001 to $50,000 cost $15 for every $1,000 of coverage, starting at $100.

What is bonding in a contract?

A contract bond is a guarantee the terms of a contract are fulfilled. If the contracted party fails to fulfill its duties according to the agreed upon terms, the contract owner can claim against the bond to recover financial losses or a stated default provision.

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