Overview of Arizona Sports Promoter Bond Requirements
To become a sports promoter in Arizona, you need to apply for a license at the state Boxing and MMA Commission.
As part of the licensing process, you will be required to post a $20,000 sports promoter bond to the Department of Insurance.
What is the purpose of this bond?
You need to post a bond as a guarantee that you will comply with the requirements of the state statutes that govern your professional obligations as a promoter.
If you violate the provisions of the statutes and cause damage to, for example, a contestant or a consumer, these may bring an action against your bond to secure compensation.
The surety that has issued the bond must then evaluate the claim and determine the extent to which to compensate a claimant. If warranted, the amount of compensation may even be as high as the full penal sum of the bond.
To learn more about surety bonds and why they are required, see our ‘What is a surety bond' guide!
To find out more about the cost of this bond, how the bond claims process unfolds, and how you can obtain your bond, see the sections that follow!
If, instead, you would prefer to speak to one of our bond professionals personally, call us at 866.450.3412!
What Is The Cost of The Arizona Sports Promoter Bond?
The cost of your bond, also known as your surety bond premium, is equal to a percentage of the total amount of your bond.
Your surety determines that percentage by reviewing your application and the financial information that you share.
Factors that determine your bond premium
The main item in your application that sureties consider is your personal credit score.
Credit score is commonly held to be a reliable indicator of the likelihood of claims against a bond being filed. A high credit score means a low likelihood.
For this reason, applicants with an excellent score, 700 FICO and more, are typically bonded at a rate between .75% and 1.5% of the total bond amount. Applicants who have good scores can expect to be offered a slightly higher rate, one between 1.5% and 5%. Applicants who have a low score at the time of applying for a bond can expect to be offered a rate from 5% of 15%.
On top of your credit score, and in order to determine your rate more accurately, your surety will likely also request to review your:
- Personal and business financial statements
- Fixed and liquid assets
- Work experience and record
Find out how much approximately your bond will cost by reviewing the table below!
|Arizona Sports Promoter Bond Cost Based on Credit Score|
|Above 700||650-699||600-649||Below 599|
|Arizona sports promoter||$20,000||$150-$300||$200-$500||$500-$1,000||$1,000-$1,500|
What May Trigger a Bond Claim?
The bond required of sports promoters in Arizona is intended to guarantee their compliance with the provisions of Title 5, Chapter 2 of the ARS. This includes faithfully performing all their obligations as defined by the ARS.
If a promoter violates these provisions and causes losses to a contestant or anyone else who they have obligations towards, a claim can be filed against their bond.
When action is brought against the bond, the surety that has issued it must evaluate the claim and determine the appropriate amount of compensation to extend to claimants. Once it compensates claimants, this concludes the claims process for them.
For promoters, though, the claims process concludes only after they have reimbursed the surety in full for any compensation it has extended. This is a typical condition of all bond agreements - that it is the bond principal who is liable for claims against their bond.
Dealing with a bond claim can be complicated and costly, and it may even reduce your chances to get bonded in the future. For this reason, it is always advised that you comply closely with all conditions of your bond, so as to avoid claims.
How Can I Get Bonded?
You can begin the application process by clicking on the banner below and completing our brief bond form. We will then contact you to provide you with a free quote and further information about the process.
If you have any additional questions about the bond required of sports promoters in Arizona, call us at 866.450.3412 anytime!