(866) 332-8453 || Powered by iContractor.net ||










Arizona Contractor Bonds: Explained
Published October 20th, 2016

Are you a tradesman who has fine-tuned your line of work -- whether that be electrical work, plumbing, mechanic -- to the point where you are confident in your abilities to launch your own business? The truth is that you'll never get ahead financially working for someone else. If you're looking for information about starting your own company here in Arizona, read on!

What is a  Contractor Bond?

A bond is required to be licensed as a contractor in the state of Arizona, whatever your trade happens to be. Contractor license bonds offer protection for three different people: you (the contractor), the company who hired you, and the  state bond  issuing agency. When you get your contractor license bond, you basically ensuring that you will provide ethical and professional service. If someone who you perform work for is negatively affected by your actions, then they are allowed to file against the bond for financial compensation.

What does the Bond Cover?

The license bond covers work performed by the contractor (you). If the person or company that you perform the work for has an issue with your job, they can file against your bond. If it is determined that you were negligent or at fault, your bond company will then pay out according to the terms of your bond.

How much does the Bond Cost?

The bond that you'll need to purchase is based on your sales volume. Depending on the license classification the volumes are broken into tiers . The cost to purchase the bond can vary slightly depending on credit but a $5,000 commercial bond is usually less than $100.00 for one year.  

Do I need to have Good Credit in Order to get the Bond?

The good news is that you do  NOT  need good credit to get a bond. The not-so-good news is that having less-than-perfect credit will cost you a little more for the bond. This increased cost is typically referred to as a  premium.

You've worked hard to acquire the knowledge and experience that you have today. You could continue to let this work go toward making someone else rich, or you can  contact us  today: we will guide you along the way to starting your own business, and the financial freedom that comes with it!


No Comments have been posted yet