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!
Find the Bond You Need
The table below contains a list of only the most popular surety bonds. If you can't find yours, fill out our online application and select "Not in the list".
|Freight Broker Bond (BMC-84)||FMCSA||N/A||Apply Now|
|Contractor License Performance & Payment (State) Bond||The Registrar of Contractors||Contractor License||Apply Now|
|Contractor License Performance & Payment (State) Bond||City of Phoenix||Right of Way Performance Bond||Apply Now|
|Collection Agency Bond||Dept of Financial Institutions||Collection Agency||Apply Now|
|Collection Agency Bond||Collection Agency Bond||Apply Now|
|Debt Consolidators Bond||Arizona State Government Management Services Div.||Credit Repair Services Bond||Apply Now|
|Professional Fund Raisers Bond||AZ Secretary of State||Contracted Fundraiser||Apply Now|
|Insurance Agents/Brokers Bond||Director of Insurance||Insurance Broker||Apply Now|
|Insurance Agents/Brokers Bond||State of Arizona||Department of Insurance Administrator Bond||Apply Now|
|Insurance Agents/Brokers Bond||State of Arizona, Department of Treasury||Health Care Card Provider Bond||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Dept of Financial Institutions||Mortgage Surety Bond||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Superintendent, Dept of Financial Institutions||Mortgage Banker Bond||Apply Now|
|Real Estate Agents/Brokers Bond||Department of Real Estate||Real Estate Salesperson's/Broker's License Bond||Apply Now|
|Title Insurance Agents & Escrow Officers Bond||Arizona Dept of Financial Institutions||Escrow Agent Bond||Apply Now|
|Defective Title Bond||Motor Vehicle Division||Highway Department Defective Title Bond||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||Motor Vehicle Division||Vehicle Dealer Bond||Apply Now|
|Auto & Mobile Home Dealers (Used Only, No New) Bond||Motor Vehicle Division||Vehicle Dealer Bond||Apply Now|
|Motor Vehicle (Non-Dealer, Not Listed) Bond||State of Arizona, Office of Administration||License / Mobile Home Dealer Bond||Apply Now|
|Motor Vehicle (Non-Dealer, Not Listed) Bond||Motor Vehicle Division||Electronic Records Access||Apply Now|
|Sport Permits Bond||AZ State Boxing Commission||Boxing Performance||Apply Now|
|Detectives Bond||Arizona Dept of Public Safety||Private Investigators License||Apply Now|
|Employment Agencies Bond||The Industrial Commission of Arizona||Employment Agency Bond||Apply Now|
|Professional Licenses (All Other) Bond||Board of Appraisals||Appraisal Management Company||Apply Now|
|Professional Licenses (All Other) Bond||Department of Insurance||Service Company Bond||Apply Now|
|Professional Licenses (All Other) Bond||City of Chandler||Peddler's Permit Bond||Apply Now|
|Professional Licenses (All Other) Bond||Arizona State Board of Pharmacy||Prescription-Only Drug Wholesaler License Bond||Apply Now|
|Professional Licenses (All Other) Bond||City Of Mesa||Peddler, Solicitor, Canvasser or Transient Merchan||Apply Now|
|Schools (All) Bond||Arizona State Board for Postsecondary Education||Private Postsecondary Education Bond||Apply Now|
|Schools (All) Bond||Arizona State Board of Cosmetology||Cosmetology School Bond||Apply Now|
|Contractors Tax (Blanket Contracts) Bond||Arizona Department of Revenue||Taxpayer Bond for Contractor 42-5006||Apply Now|
|Fuel Tax (All Others, Sellers & Users) Bond||MOTOR CARRIER TAX & SERVICES (MVD)||Motor Fuel Supplier Bond||Apply Now|
|Fuel Tax (All Others, Sellers & Users) Bond||Motor Vehicle Division||IFTA||Apply Now|
|Miscellaneous Taxes Bond||Arizona Dept Of Revenue: Taxpayer Information||Taxpayer Bond for Contractor||Apply Now|
|Compliance 3rd Party Bond||Arizona Corporation Commission||Utility Users Bond||Apply Now|
|Utility Deposit Bond||Arizona Public Service||APS Electric Service Bond||Apply Now|
|Utility Deposit Bond||Salt River Project - Commercial Credit Dept.||Salt River Project Utility Deposit||Apply Now|
|Utility Deposit Bond||Tucson Electric||Utility Deposit||Apply Now|
|Utility Deposit Bond||Corporation Commission||Bond for Utility Users||Apply Now|
|Utility Deposit Bond||SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE INC||Sulphur Springs Valley Electric Utility Deposit Bo||Apply Now|
|Utility Deposit Bond||City of Mesa: Attention Credit Services||Payment of Utility Services Bond||Apply Now|
|Financial Guarantee (All Other) Bond||PrePass / HELP||Financial Guarantee Bond||Apply Now|
|Money Transmitter Bond||State Of Arizona||Money Transmitter Application||Apply Now|
|Telemarketing/Phone Solicitor Bond||Attorney General||Telephone Solicitation||Apply Now|
|Non-Construction Performance Bond||Arizona Corporate Commission||License Bond||Apply Now|
|Non-Construction Performance Bond||Arizona Corporation Commissions||Telecommunications Business License Bond||Apply Now|
|Appraisal Management||Arizona Board of Appraisal||Appraisal Management Company Bond||Apply Now|
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 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.
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.
Surety Bond Cost Calculator
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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.