Arizona Surety Bonds

Arizona Surety Bonds Overview

When you apply for a business license in Arizona, you are likely to be required to obtain a surety bond. This bond serves as a guarantee that you will comply with your obligations and responsibilities as they are defined in state law.

Contractors who wish to perform on state construction projects are also frequently required to post a bond before they can begin work. These bonds guarantee their performance in accordance with contract conditions.

Why is a bond required?

Bonds function as protection for the state and its public. They are agreements between the following three parties:

• The surety bond obligee - the party that requests the bond
• The surety bond principal - the party that gets bonded
• The bond company - the party which issues the bond and backs it financially

Every bond agreement lists various conditions which bond principals must comply with. These usually include compliance with state laws and the faithful execution of obligations and responsibilities. In other words, the bond agreement functions as a guarantee that the principal will conduct business in accordance with legal requirements.

If a principal violates the bond agreement, causing losses or damages, this can give rise to a claim against their bond. In this way, the bond provides protection to obligees and guarantees compensation.

Want to know more about how bonds work? See our detailed 'What is a surety bond' guide!

Are you ready to apply for your bond? Find the bond you need in the table below and follow the application link!

If you are still not sure what kind of Arizona surety bond you need to obtain, see the sections below!

Types of Surety Bonds in Arizona

The following three general types of bonds are most commonly required in the state:

• License and permit
• Contract bonds
• Court bonds

Find out more about all of these different surety bonds in the sections below!

License & Permit Bonds

License and permit bonds are a common requirement during the business licensing process. The main purpose of this type of bond is to guarantee that licensed businesses will comply with state laws.

Some of the most frequently acquired bonds in the state include the auto dealer bond, the mortgage broker bond as well as freight broker bonds. These are only some of the bonds that are required of businesses in the state.

To find out more about the cost of surety bonds, and about the difference between bond amount and bond cost, check the section below on surety bond cost.

Contract Bonds

Contract bonds are almost always required of contractors who wish to perform work on a construction project. For example, in order to submit a bid, a contractor may need to post a bid bond first. Similarly, when a contractor is awarded a construction contract, they may need to submit a performance bond before they can begin work.

The function of these bonds is to protect project owners, which may be the public and the state, as well as private owners. They guarantee that the contractor will comply with the various responsibilities they have when performing work. In this way, they protect project owners from losses due to contractor default and other violations.

Court Bonds

When an individual wants to appeal the decision of a court, they may be asked to present a court bond first. Similarly, when a court appoints anyone as a guardian or fiduciary, that person may need to submit a bond in order to assume this role.

If you have any questions about these bonds or need more information about the bond you require, call us at 866.450.3412!

What's The Cost of a Surety Bond in Arizona?

Surety bond cost is determined by sureties, on the basis of a bond’s amount. The bond amount is the penal sum of the bond - i.e. the maximum amount of compensation that a surety will extend to obligees in the case of a legitimate claim against the bond.

The cost, or premium, of a bond is almost always a percentage of the total bond amount. So how high or low is this percentage? When assessing surety bond applicants, sureties take several financial factors into account.

Factors that determine the cost of your bond

The foremost criteria that sureties use in determining the rate for a bond is your personal credit score. The higher your score, the lower the cost of your bond will be. To get a better picture, sureties may also look at other financial factors such as:

• Personal financial statements
• Business financial statements
• Industry experience
• Other financially-related factors

Typically, rates for applicants who have a stellar or high credit score are between 1%-4% of the total bond amount. How much exactly depends on the particularities of every bond and application.

Applicants with a low credit score or scant credit record, on the other hand, typically need to pay somewhat higher rates to get bonded. This is because sureties perceive such applicants as presenting a higher risk. Rates for such applicants are typically between 5%-15% of the total amount. But by improving their credit and other financials, all such applicants can improve their bond rates significantly over time.

Want to know what your surety bond premium might look like? Use our surety bond cost calculator to get an estimate of the cost of your bond.

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Surety Bond Cost Calculator

Bond Type Select Your Required Bond Auto Dealer BondCollection Agency BondContractor License BondDebt Collector BondFreight Broker BondMedicare/Medicaid BondMortgage Broker BondRetail & Professional Services BondSchool BondSmall Loan Company BondSports Permit BondTax & Utility BondTelemarketing BondTravel Agent BondAll Other License Bonds

State Requiring the Bond Select Your StateAlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWashington D.C.West VirginiaWisconsinWyoming

Surety Bond Amount ($)

Select Your Credit Score Please select Above 700 650 - 699 600 - 649 550 - 599 549 and under

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Our surety bond cost page is also a great resource for you to consider! It contains everything you need to know about how premiums are determined and how applicants can lower their rates over time.

How to Get Bonded in Arizona

Want to get an Arizona surety bond? Depending on the type of bond you are applying for, you will have to choose one of the two following options.

License bond application

To apply for a license and permit bond, complete our simple online application. Most license bonds are reviewed and approved fairly quickly, so you can expect your free surety bond quote within a short amount of time.

Contract bond application

To apply for a contract bond, complete the appropriate online application form and send it to us. Contract bonds usually take a bit more time to review but we’ll contact you with a free quote on your bond and more information as soon as we have processed your application.

If you have any questions about getting bonded in Arizona, call us at 866.450.3412 anytime. We will be happy to provide you with further information and assistance.

Further Reading

About us:

Bryant Surety Bonds

Bryant Surety Bonds, Inc. is a surety bond agency based in Pennsylvania. Licensed in all 50 states and with access to over 20 T-listed, A-Rated bonding companies, we have the contacts, expertise, and top service to provide you with a hassle-free experience, all while offering competitive rates for your surety bond.