Arizona Surety Bonds

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Surety Bond Professionals is a family owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your Arizona surety bond needs.
Continue reading below to learn more about common Arizona bonding requirements, or use our online form to request a quote now.

Required Surety Bonds in Arizona

Typical Arizona bonds include (click on any for more info):

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Required Surety Bonds in Arizona

There are three broad classes of Arizona surety bonds: license bonds, contract bonds, and court bonds.

Arizona Construction & Contractor Bonds

Contract bonds may be required at the state level for Arizona contractors working on public works projects, even though there is no statewide licensing of contractors. Contract bonds are also required by a number of Arizona municipalities. These can include bid bonds, performance bonds, payments bonds, maintenance bonds, and more.

Arizona License Bonds

License bonds are often required as a prerequisite for becoming licensed in a given profession or business field. Many licenses are issued at the state level. For example, collection agencies and mortgage brokers are licensed by the Arizona Department of Financial Institutions and motor vehicle dealers by the Arizona Motor Vehicle Division.
A number of municipalities also require license bonds for professionals operating within their jurisdictions. For example, these may be required for businesses like funeral homes, money transmitters, alcohol sellers, health clubs, and contractors.

Arizona Court Bonds

Court bonds are sometimes required by Arizona courts for such purposes as appealing a court decision or serving as executor of an estate or in another fiduciary capacity.

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Whether you need an Arizona license bond, contract bond, or court bond, our experienced surety agents are here to help you. Apply now!

Frequently Asked Questions

There are three parties to every surety bond agreement, which is a legally binding contract:

  • The “obligee” is the state or local agency requiring the surety bond.
  • The “principal” is the party required to purchase the bond.
  • The “surety” is the company underwriting and issuing the bond.
  • The obligee sets the required amount of the bond, which is the maximum amount that will be paid out on a claim. The obligee also spells out the conduct required of the principal in order to avoid claims against the surety bond.

Any party who suffers a financial loss because the principal has violated the terms of the bond has the right to file a claim against the bond. The principal is solely responsible for paying all valid claims.

However, the surety will often pay a claim and wait to be reimbursed by the principal. This ensures timely settlement of the claim and gives the principal some time to gather the necessary funds.

What the principal in a bond agreement actually pays for a surety bond is a small percentage of the required bond amount established by the obligee. That percentage, known as the premium rate, is determined by the surety company based on the applicant’s credit score and other indicators of the likelihood of claims being filed against the bond. Those with good credit can expect a rate of 1-3%. Those with poorer credit may pay a higher premium.
No claim against a bond will be paid until the surety company has investigated and determined that it is valid. After making payment to a claimant, the surety company will demand reimbursement from the principal.