Arkansas 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 Arkansas surety bond needs.
Continue reading below to learn more about common Arkansas bonding requirements, or use our online form to request a quote now.

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Required Surety Bonds in Arkansas

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

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Required Surety Bonds in Arkansas

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

Arkansas License & Permit Bonds

License bonds are often required at the state or local level (or both) as a condition for obtaining a license or permit to operate a business or practice a profession.
For example, collection agencies are licensed by the Arkansas Board of Collection Agencies, contractors by the state’s Contractors Licensing Board, and new car dealers by the Arkansas Motor Vehicle Commission.
Some individual municipalities require bonding for businesses and professionals operating within their jurisdiction as well.

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Arkansas Construction & Contractor Bonds

Contractor bonds—including bid bonds, performance bonds, payment bonds, etc.—may be required for contractors who want to become involved in public works projects at the state level and in certain cities and counties.

Arkansas Court Bonds

Court bonds are generally classified as appeal bonds, probate bonds, and guardianship bonds.

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If you’ve been informed that you need to purchase an Arkansas surety bond, call us today, or request an online quote for the bond you need.

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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.