What is an Arizona contractor license bond?
The state of Arizona requires all individuals and businesses that are commercial, residential, general, and specialty contractors to post a contractor license bond. Arizona determines the bond amount (between $2,500 and $100,000) based on the contractor’s license type and total annual revenue. The bond applicant pays a premium to obtain the bond, which is 0.5%-10% of the bond amount (depending on credit history). Specifically, the types of contractors are listed below with the average cost for premiums:
- Commercial contractors: 0.5% of the bond amount up to $50,000, no credit check needed. 1%-5% of the bond amount over $50,000, depending on the business owner’s credit.
- Residential contractors: 2% of the bond amount up to $4,250, no credit check needed. 3%-10% of the bond amount over $4250, depending on the business owner’s credit.
- Dual contractors: 1%-10% of the bond amount, depending on the business owner’s credit.
Get Your Arizona Contractor License Bond:
Arizona Contractor License Bond Types and Amounts
The contractor’s license type and estimated total annual revenue determine the bond limit. The following table from the Arizona ROC website details the bond limits for various contractor licenses:
License Type | Contemplated Gross Volume (Per License) | Bond Amount |
| Residential General Contractors | Less than $750,000 | $9,000 |
| $750,000 or more | $15,000 | |
| Residential Specialty Contractors | Less than $375,000 | $4,250 |
| $375,000 or more | $7,500 | |
| Commercial General Contractors (& General Engineering Contractors) | $150,000 or less | $5,000 |
| Over $150,000 but not more than $500,000 | $15,000 | |
| Over $500,000 but not more than one million | $25,000 | |
| Over one million but not more than five million | $50,000 | |
| Over five million but not more than ten million | $75,000 | |
| Over ten million | $100,000 | |
| Commercial Specialty Contractors | $150,000 or less | $2,500 |
| Over $150,000 but not more than $500,000 | $7,000 | |
| Over $500,000 but not more than one million | $17,500 | |
| Over one million but not more than five million | $25,000 | |
| Over five million but not more than ten million | $37,500 | |
| Over ten million | $50,000 |
Table 1.1 Arizona Contractor Bond Amounts
Get Your Contractor License Bond in Arizona
ZipBonds is the fastest and most secure option for getting bonded. Our all-digital platform is intuitive and straightforward. Apply for your contractor license bond online, email support@zipbonds.com, or call 888.435.4191 to speak with an agent directly.
About ZipBonds.com
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.