A surety agent is the professional guiding you to obtain the appropriate bonding insurance for your needs. These bonding insurances can protect your project and the accompanying financial investment.
For example, there are Contractor Bonds, Pay-Performance Bonds, License Bonds, Permit Bonds and Surety Bonds.
In Arizona, a new contractor must file a Contractor’s Bond in the amount specified for that Contractor’s license classification, and estimated annual gross volume. Residential Contractors must provide a consumer protection bond. This bond covers the clients of a contractor in the state of Arizona for financial issues that can arise if the contractor does not produce the specified product as agreed. With a Phoenix Arizona contractor bond, you can comfortably go into contract or make a financial commitment as you are guaranteed to have recourse in the event that there is a default. The Arizona ROC requires that a new contractor has this bond before the contractor can obtain a license and new contractors are able to establish themselves in a secure relationship with their clients in short order as the client is in a protected position. Read more about Arizona Contractor Insurance.
- Architects, Engs & Construction
- Assisted & Independent Living Facilities, Skilled & Intermediate Care Facilities, Retirement Apartments & Continuing Care Retirement Communities
- Bonding Insurance
- Builders Risk/Cost of Construction Insurance
- Child Care Business Insurance
- General Liability Insurance For Business
- Umbrella Insurance For Business
- Contractors, All License Classes Insurance
- Cyber Liability Insurance
- Directors and Officers Coverage
- Employment Practices Liability Insurance
- Errors & Omissions Insurance
- Fidelity & Crime Policies
- Pollution Liability Insurance
- Product Liability Insurance
- Professional Liability Policies
- Property/Inland Marine Coverage
- Night Club And Bar Insurance
- Roofing Company Insurance
- Start-Up Insurance Coverage
- Workers’ Compensation Insurance
Bond any company that is doing work for you to insure that basic performance standards are met, protect yourself from deficient products, bankrupt companies, and criminal negligence with a performance bond that will compensate you in the event that a contractor or sub-contractor fails to deliver.
All new contractors must have a bond in order to obtain a license from the Arizona ROC. This bond provides financial coverage for the clients of the contractor in the event that the contractor fails to deliver the promised product and is a good way to establish trust with clients. It is far easier for a client to enter into an agreement or make a financial commitment knowing that there is recourse in the event of default.
On major builds and large commercial installations all work is governed by permits. An inability to obtain the necessary permits can result in large losses for the developer and his investors, through no fault of any contractor. In the event of such circumstances, a permit bond would work to compensate all parties for the financial losses brought about by inability to obtain a permit.
A Surety Bond is easier to manage for most Arizona Contractors than producing cash or making a cash deposit. Contractors obtain a Surety Bond from an Arizona resident insurance agent working with an insurance company authorized by the Arizona Department of Insurance to issue contractor’s license bonds, a type of Phoenix, AZ bonding insurance.
A surety bond must be continuous; there can be no termination date on the bond. The Contractor is responsible to keep the bond in force. The bonding company can cancel a surety bond after notifying the Contractor and the Arizona Registrar of Contractors thirty days prior to the cancellation date. In the event of a cancellation, the Contactor has to replace the bond or that Contractor’s license will be suspended.