What Is a Financially Responsible Officer?

What Is a Financially Responsible Officer?

“Financially responsible officer” means a person other than the primary qualifying agent who with the approval of the board assumes personal responsibility for all financial aspects of the business organization.

A financially responsible officer is someone that does not hold a contractors license in that specific scope of work and who is responsible for 100% of the financial responsibilities of that said construction entity.

Since that person does not hold a contractors license they must post a $100,000 bond which does not cost $100,000. Depending on his or her credit score and financial capability, the bonding company will post a bond typically for a cost of $500 to $3000 per year, unless their credit is very bad which it could go up.  This is different than the financial responsibility bond which is when your credit as a contractor is less than 660. No matter what your credit score is you will still have to post $100,000 bond Because you are not a licensed contractor. this was put in place to protect the consumer from any harm by an unqualified individual, meaning not a license holder.

Contact us to get a quote for a FRO Bond

Call 954-331-4468