Arkansas Surety Bonds Overview

When you apply for a business license in Arkansas, you will likely need to post a surety bond. In the same way, if you are a contractor and want to work on state construction projects, you will also need to post a surety bond.

What is the purpose of the surety bond?

The purpose of surety bonds is to serve as a guarantee that the bonded party will comply with certain requirements. For example, when you get a bond as part of the business licensing process, it guarantees that you will comply with those state laws that govern your business. Or, for contractors, that you will perform your work according to the conditions of your construction contract.

If a bonded party violates their bond agreement, those affected by the violation can file a claim against the bond. After investigating the claim, the surety that backs the bond may then extend compensation to claimants, up to the full bond amount.

To get a better picture of how bonds function, see our detailed 'What is a surety bond' page.

Continue reading to find out more about the different types of surety bonds, how you can get bonded in Arkansas, and how much it will cost. If you already know what you are looking for, just select the bond you need in the table below and follow the link to your application.

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".

Contractor License Performance & Payment (Local) Bond City of Marion (City of Marion, AR) Contractor License Bond Apply Now
Contractor License Performance & Payment (State) Bond Contractors Licensing Board Contractor's Bonds Apply Now
Contractor License Third Party Liability Bond Contractors Licensing Board Contractor License Apply Now
Collection Agency Bond State Board of Collection Agencies Collection Agency Apply Now
Professional Fund Raisers Bond Arkansas Attorney General Professional Fund Raisers Bond Apply Now
Insurance 3rd Party Administrator Bond Arkansas Insurance Dept. License Division Third Party Administrator Bond Apply Now
Mortgage Broker (1st & 2nd Mortgages) Bond Securities Dept Mortgage Broker or Mortgage Servicer Bond Apply Now
Mortgage Lender/Banker (1st & 2nd Mort.) Bond Securities Dept Mortgage Banker Apply Now
Auto & Mobile Home Dealers (New & Used) Bond Motor Vehicle Commission New Motor Vehicle Dealer Apply Now
Auto & Mobile Home Dealers (New & Used) Bond Arkansas Motor Vehicle Commission New Motorcycle, ATV, Scooter, Utility Vehicle or L Apply Now
Auto & Mobile Home Dealers (Used Only, No New) Bond State Police - Special Services Section Used Motor Vehicle Dealer Apply Now
Oil, Gas, Water or Mineral Wells or Leases Bond Department of Environmental Quality Oil, Gas, Water or Mineral Wells or Leases Bond Apply Now
Sport Permits Bond Arkansas Athletic Commission Combative Sports Bond Apply Now
Professional Licenses (All Other) Bond Appraiser Licensing and Certification Board Appraisal Management Company Apply Now
Professional Licenses (All Other) Bond State of Arkansas Athletic Commission Combative Sports Apply Now
Professional Licenses (All Other) Bond AK Attorney General Attn Tobacco Division Non-Participating Manufacturer or Importer Apply Now
Professional Licenses (All Other) Bond Arkansas Game and Fish Commission Fishing License & Equipment Consignment Bond Apply Now
Professional Licenses (All Other) Bond Arkansas State Plant Board Household Pest and Rodent Control Bond Apply Now
Professional Licenses (All Other) Bond Arkansas Insurance Department Service Contract Provider Bond Apply Now
Cigar/Cigarette & Tobacco Tax Bond Tobacco Control Board Coin Operated Cigaretter Machine Operators Bond Apply Now
Fuel Tax (All Others, Sellers & Users) Bond Motor Fuel Tax Section Motor Fuel Tax Bond Apply Now
Utility Deposit Bond PLWC Paragould Light Water and Cable Utility Bond Apply Now
Utility Deposit Bond Entergy Arkansas, Inc. Entergy Arkansas, Inc. Electric Service Bond Apply Now
Lottery Bond ARKANSAS SCHOLARSHIP LOTTERY Scholarship Lottery Bond Apply Now
Telemarketing/Phone Solicitor Bond Office of the Attorney General Telephonic Seller Apply Now

Types of Arkansas Bonds

What kind of Arkansas surety bond do you need? Is it a license and permit bond that will allow your Arkansas business to get licensed? Or do you need a contract bond so that you can begin working on an Arkansas-based construction project? Read more below about the different types of Arkansas surety bonds!

License & Permit Bonds

To get your business licensed and operational in Arkansas, you may need to post a license and permit bond. These bonds, sometimes also referred to as commercial bonds, are often required by businesses in order for them to receive a license. Most license and permit bonds are specified in state regulations, though some of them are also required nationwide, as per federal regulations.

Some of the most popular bonds in the state include the auto dealer bond, the mortgage broker bond as well as the freight broker bond. While these are some of the most popular bonds in the state, many other businesses also require a bond to get licensed.

Start your surety bond application today! Why us?
  • Quick turnaround - just 1-2 business days
  • Tailor-made advice on building a strong application
  • Exclusive bad credit programs

Contract Bonds

State regulations often require that contractors working on public or federal construction projects obtain a set of contract bonds before they are allowed to begin work. Many private construction projects in Arkansas also require that contractors get bonded prior to commencing work.

These bonds are utilized in a number of instances. Bid bonds, for example, guarantee that if a contract is awarded, it will be executed at the bidding price. Performance bonds guarantee that the contractor will perform in accordance with the conditions and requirements of their contract. Payment bonds, on the other hand, serve to protect subcontractors and guarantee that general contractors pay them for the work they have performed.

In all of the above cases, and more, you can expect to be required to post a contract bond.

Court Bonds

Court bonds are usually requested by the court itself. Appellants are very likely to require a court bond before they can appeal a judgement and fiduciaries will also require a court bond when they assume the role and responsibility of being someone’s guardian.

These are the three main surety bond categories offered in Arkansas. If you’re still not sure which bond you need or have further questions prior to applying, just call us at (866)-450-3412.

Surety Bond Cost in Arkansas

The cost of your Arkansas surety bond depends on the amount of the surety bond you are applying for and on yourself as the applicant.

The surety bond amount is the total amount of coverage that a surety will extend to obligees in the case of a claim against the bond. The cost of your surety bond is a fraction or percentage of this amount. How high this percentage or your rate will be, depends on a number of financial and business-related factors that sureties take into account.

The most important among these is your personal credit score. It has the highest influence when sureties look at your application and determine your rate.

Sureties also take into account other factors when preparing your bond quote. These include:

  • The quality of your financial statements
  • The stability and health of your business
  • Your industry experience
  • Other financial factors

Applicants whose credit score is high, are usually offered a rate on their Arkansas surety bond which is between 1%-4% of the total bond amount, also known as a standard market rate.

Applicants who have no credit or a low credit score are usually considered higher risk applicants and are offered rates that are slightly higher - between 5%-15% of the total bond amount.

Want to get an estimate quote on your bond? Try our surety bond cost calculator below! Do you need to know more about bond cost before you get bonded? Our thorough surety bond cost page contains plenty of information about how cost is formed. Have a look!

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How to Get Bonded in Arkansas

Once you’re sure which bond you need, just follow the guidelines, fill in your application and send it to us.

License bond application

To get a license and permit bond, complete our online application form. When you submit your application we will review it and then come back to you with an entirely free quote on your bond. Depending on the type of license and permit bond you are applying for, we may have to request a number of additional documents before we underwrite your bond.

Start your surety bond application today! Why us?
  • The lowest possible rates
  • A 100% money-back guarantee
  • Access to specialty programs, not available to small agencies

Contract bond application

There are two possible options when applying for a contract surety bond.

If you are applying for a bond which is under $250,000 go ahead and use our Fast Track Program. If the contract bond you need to obtain is over $250,000 you will have to use our Full Bond Line Project application form. To apply for your contract bond, download the appropriate application form, fill in the details and just forward it to us. We will soon get back to you.

You can always call us at (866)-450-3412 if you want to know more or need help with your application. We will be happy to assist you and respond to any questions that require further clarification.


About the author:
Todd Bryant
Todd Bryant is a graduate of Germantown Academy and the University of Pittsburgh College of Business Administration Honors College. He has been President of Bryant Surety Bonds, Inc., an A+ rated Business with the Better Business Bureau, since 2007. Licensed as a producer with the Department of Insurance, he has been published in the National Association of Surety Bond Producers newsletter and on numerous authoritative publications such as The Washington Post, Entrepreneur.com, Azcentral.com and many more.