--- title: "Arizona Contractor License Bonds" description: "Arizona contractor license bonds vary by license class and planned in-state work volume." canonical: "https://spot.insure/coverage/surety-bonds/arizona" page-type: "coverage-state-guide" updated-at: "2026-09-28" --- Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and insurance research. Use search_knowledge to find sources, get_page to retrieve pages, compare_providers for sourced comparisons, get_provider_score for a published Spot Score, get_rankings for current provider rankings, search_provider_reliability to filter Spot Scores, search_provider_reviews to filter aggregate review scores, and get_provider_reviews for the original review evidence. The server is read-only and requires no authentication. [Human-readable page](https://spot.insure/coverage/surety-bonds/arizona) # Arizona Contractor License Bonds Arizona’s Registrar of Contractors fixes contractor-license bond amounts by license classification and estimated annual in-state work volume, within statutory ranges. Contractors should match each license’s business volume and type to the prescribed bond or cash deposit; residential and dual-licensed contractors also must choose a separate $200,000 bond or participation in the residential recovery fund.[^1][^2] **Coverage:** [Surety bonds](/coverage/surety-bonds) · [Arizona](/coverage/states/arizona) ## What Is Surety Bonds? A surety bond guarantees that your business meets a specific obligation to a customer, contracting party or government agency. If a contract, license or permit requires one, get its exact form and amount; a bond is not insurance for your own losses. [Read the national Surety bonds guide](/coverage/surety-bonds). ## Arizona Requirements | Requirement | Details | | --- | --- | | License bond or cash deposit | A.R.S. § 32-1152 sets separate bond/deposit schedules by commercial or residential and general or specialty classification, adjusted for estimated annual volume. For example, general commercial ranges from $5,000–$100,000, specialty commercial from $2,500–$50,000, specialty residential from $1,000–$7,500 and general residential from $5,000–$15,000; ask the Registrar for each exact amount.[^1] | | Additional residential or dual-license choice | A residential or dual-licensed contractor must either furnish an additional $200,000 surety bond or cash deposit limited to eligible § 32-1132 claimants, or participate in the Residential Contractors’ Recovery Fund and pay its assessment.[^1][^2] | ## What to Watch for in Arizona ### Match each bond to license type and estimated volume The Registrar fixes each bond or deposit in the licensee’s name under separate schedules for general versus specialty and commercial versus residential contracting. Some commercial amounts depend on estimated annual volume, and statutory boundaries use precise greater-than/less-than terms. Obtain the Registrar’s exact classification, volume treatment and sum for every license, especially at a stated threshold.[^1] ### A license bond is not a project-completion guarantee The license bond secures the statutory claims described for its classification and is limited to its face amount. Section 32-1152 requires the surety to give the contractor and Registrar at least 30 days’ notice of cancellation; when a bond is cancelled and no replacement is on file, the contractor’s license is suspended by operation of law. Owners may separately require contract bonds.[^1] ### Residential and dual-licensed firms make a second security choice In addition to the base license bond, § 32-1152(C) requires residential and dual-licensed contractors either to post another $200,000 bond/deposit for § 32-1132 claimants or pay the residential recovery-fund assessment. That fund has its own claimant and residential-property rules, including owner or lessee primary-residence conditions and a $30,000 maximum individual award.[^1][^2][^3] ### Confirm whether the obligee wants a separate contract bond The statute says the license bonds are in addition to any bond an owner or contracting party requires on a contract. A license bond therefore should not be presented as a bid, performance or payment bond for a particular project; check the customer’s contract and tender instructions separately.[^1] ### A residential-fund claimant must address any existing bond A claimant seeking administrative recovery from the Residential Contractors’ Recovery Fund must show that the claimant proceeded against any existing bond covering the contractor. The fund is limited to eligible residential-property claims and is not a commercial-property bond.[^4][^3] ## Who Regulates Insurance in Arizona **Arizona Department of Insurance and Financial Institutions.** Arizona DIFI regulates insurance companies and insurance professionals, including producers and surplus-lines brokers. Its license search covers both individual or business licensees and insurance companies, and its complaint page explains how to file with the Department.[^5][^6][^7] - [Regulator website](https://difi.az.gov/) - [License lookup](https://difi.az.gov/license-search) - [File a complaint](https://difi.az.gov/file-a-complaint) - Phone: (800) 544-2378 ### Surplus-Lines Tax and Stamping Office **Reported tax rate:** 3% of gross premium and taxable policy fees, less returns; stamping fee rate not verified When Arizona is the insured’s home state, the tax is 3% of gross premium and taxable policy fees, less returned premium; the statute excludes stamping fees from that tax base. For a multistate risk, Arizona’s share is allocated by exposure under the statute. Arizona's surplus-lines policy notice says these policies do not receive guaranty-fund protection. Current stamping-fee amount was not independently confirmed from readable current evidence and is omitted.[^8][^10][^12][^13] [The Surplus Line Association of Arizona](https://www.sla-az.org/) **Arizona has an exempt-commercial-purchaser search exception:** A surplus-lines broker generally must make diligent effort to place an Arizona risk in the admitted market. For an exempt commercial purchaser, federal law removes that search only after the broker discloses the admitted-market protection difference and the purchaser then asks in writing for nonadmitted coverage.[^9][^11] ## Providers With Documented State Licenses These providers publish a national listing for Surety bonds; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm that the product is available in Arizona; [check the regulator’s license lookup](https://difi.az.gov/license-search) and confirm state availability for your business when requesting a quote. - [TechInsurance](/insurance-providers/techinsurance) — **Entity:** Specialty Program Group LLC; **role:** Insurance producer; **checked:** 2026-09-28. **Scope:** TechInsurance’s current licensing page names Specialty Program Group LLC / SPG Insurance Solutions and lists state license numbers, but labels Rhode Island “Individual licenses” rather than identifying a license for the named agency. RI is omitted because this disclosure does not establish agency authority there; this is a search limitation, not an assertion that the company is unlicensed. The remaining state entries are company-reported and are not an insurance product availability map.[^20] ## Questions to Ask Before You Buy in Arizona 1. Does the proposed bond reflect the exact Arizona license category and estimated in-state work volume, including the Registrar’s treatment of any amount exactly at a statutory band boundary and any combined amount for a dual license? 2. Has the bond been filed with the Registrar, and what effective and cancellation dates apply? 3. For residential work, is the contractor using the Recovery Fund or the separate $200,000 bond/cash option? 4. What indemnity and financial documents does the surety require, and how would a bond claim affect the contractor’s licensing status? ## Surety Bonds in Arizona: FAQ ### Does Arizona set one bond amount for every contractor? No. A.R.S. § 32-1152 uses classification and estimated annual work volume to set bond/deposit ranges. Get the Registrar’s amount for the exact license categories and volumes rather than relying on a generic amount.[^1] ### Does Arizona’s recovery-fund or license bond guarantee completion of a project? No. Statutory eligibility is limited. The residential fund covers defined residential claimants and property, with a $30,000 individual award cap; a license bond is also limited by its penal sum and statutory beneficiary rules.[^1][^2][^3] ### Who is the principal and who may claim on an Arizona license bond? The contractor executes the license bond as principal. A.R.S. § 32-1152 defines eligible claimants by license category; it does not make the bond a project owner’s full contract guarantee. Confirm the form’s obligee and each statutory beneficiary before filing.[^1] ## Surety Bonds in Other States - [Alabama](/coverage/surety-bonds/alabama) - [Alaska](/coverage/surety-bonds/alaska) - [Arkansas](/coverage/surety-bonds/arkansas) - [California](/coverage/surety-bonds/california) - [Colorado](/coverage/surety-bonds/colorado) - [Connecticut](/coverage/surety-bonds/connecticut) - [Delaware](/coverage/surety-bonds/delaware) - [District of Columbia](/coverage/surety-bonds/district-of-columbia) - [Florida](/coverage/surety-bonds/florida) - [Georgia](/coverage/surety-bonds/georgia) - [Hawaii](/coverage/surety-bonds/hawaii) - [Idaho](/coverage/surety-bonds/idaho) - [Illinois](/coverage/surety-bonds/illinois) - [Indiana](/coverage/surety-bonds/indiana) - [Iowa](/coverage/surety-bonds/iowa) - [Kansas](/coverage/surety-bonds/kansas) - [Kentucky](/coverage/surety-bonds/kentucky) - [Louisiana](/coverage/surety-bonds/louisiana) - [Maine](/coverage/surety-bonds/maine) - [Maryland](/coverage/surety-bonds/maryland) - [Massachusetts](/coverage/surety-bonds/massachusetts) - [Michigan](/coverage/surety-bonds/michigan) - [Minnesota](/coverage/surety-bonds/minnesota) - [Mississippi](/coverage/surety-bonds/mississippi) - [Missouri](/coverage/surety-bonds/missouri) - [Montana](/coverage/surety-bonds/montana) - [Nebraska](/coverage/surety-bonds/nebraska) - [Nevada](/coverage/surety-bonds/nevada) - [New Hampshire](/coverage/surety-bonds/new-hampshire) - [New Jersey](/coverage/surety-bonds/new-jersey) - [New Mexico](/coverage/surety-bonds/new-mexico) - [New York](/coverage/surety-bonds/new-york) - [North Carolina](/coverage/surety-bonds/north-carolina) - [North Dakota](/coverage/surety-bonds/north-dakota) - [Ohio](/coverage/surety-bonds/ohio) - [Oklahoma](/coverage/surety-bonds/oklahoma) - [Oregon](/coverage/surety-bonds/oregon) - [Pennsylvania](/coverage/surety-bonds/pennsylvania) - [Rhode Island](/coverage/surety-bonds/rhode-island) - [South Carolina](/coverage/surety-bonds/south-carolina) - [South Dakota](/coverage/surety-bonds/south-dakota) - [Tennessee](/coverage/surety-bonds/tennessee) - [Texas](/coverage/surety-bonds/texas) - [Utah](/coverage/surety-bonds/utah) - [Vermont](/coverage/surety-bonds/vermont) - [Virginia](/coverage/surety-bonds/virginia) - [Washington](/coverage/surety-bonds/washington) - [West Virginia](/coverage/surety-bonds/west-virginia) - [Wisconsin](/coverage/surety-bonds/wisconsin) - [Wyoming](/coverage/surety-bonds/wyoming) [Other Coverage in Arizona](/coverage/states/arizona) ## Sources [^1]: [Arizona Revised Statutes § 32-1152, Bonds](https://www.azleg.gov/ars/32/01152.htm) — Arizona State Legislature; Subsections (A)–(H), bond schedules, residential additional bond/recovery-fund choice, beneficiaries, cancellation and disciplinary bonds. Accessed 2026-09-28. [^2]: [Arizona Revised Statutes § 32-1132, Residential Contractors’ Recovery Fund; Claimants; Eligibility](https://www.azleg.gov/ars/32/01132.htm) — Arizona State Legislature; Subsections (A)–(D), eligible classes and primary-residence/licensing conditions. Accessed 2026-09-28. [^3]: [Arizona Revised Statutes § 32-1132.01, Actual Damages; Fund; Limitations](https://www.azleg.gov/ars/32/01132-01.htm) — Arizona State Legislature; Subsections (A)–(H), residential-property scope and $30,000 individual maximum award. Accessed 2026-09-28. [^4]: [Arizona Revised Statutes § 32-1133.01, Administrative Recovery; Statute of Limitations](https://www.azleg.gov/ars/32/01133-01.htm) — Arizona State Legislature; Subsection (F), applicant must show proceedings against an existing residential contractor bond. Accessed 2026-09-28. [^5]: [Arizona Department of Insurance and Financial Institutions](https://difi.az.gov/) — Arizona Department of Insurance and Financial Institutions; Official agency homepage. Accessed 2026-09-28. [^6]: [License Search](https://difi.az.gov/license-search) — Arizona Department of Insurance and Financial Institutions; Search for individual or business licensees and insurance companies; insurer surplus-lines eligibility links. Accessed 2026-09-28. [^7]: [File a Complaint](https://difi.az.gov/file-a-complaint) — Arizona Department of Insurance and Financial Institutions; Department complaint information and filing destinations. Accessed 2026-09-28. [^8]: [A.R.S. § 20-416: Tax on surplus lines](https://www.azleg.gov/ars/20/00416.htm) — Arizona State Legislature; Subsection C sets the surplus-lines tax at 3% of gross premiums and requires the broker to collect it from the insured. Accessed 2026-09-28. [^9]: [License Search](https://difi.az.gov/license-search) — Arizona Department of Insurance and Financial Institutions; Department guidance on surplus-lines eligibility and diligent-effort requirement under A.R.S. § 20-407. Accessed 2026-09-28. [^10]: [Arizona House Bill 2111, Chapter 38](https://www.azleg.gov/legtext/52leg/2r/laws/0038.htm) — Arizona Legislature; Arizona House Bill 2111 (amending § 20-408) and current A.R.S. § 20-410 policy notice; see statutory notice. Accessed 2026-09-28. [^11]: [15 U.S.C. § 8205: Streamlined application for commercial purchasers](https://uscode.house.gov/view.xhtml?req=%28title%3A15+section%3A8205+edition%3Aprelim%29) — U.S. House of Representatives, Office of the Law Revision Counsel; Broker's due-diligence search exception for an exempt commercial purchaser requires prior disclosure that admitted-market insurance may offer greater protection/regulatory oversight and the purchaser's subsequent written request for nonadmitted placement. Accessed 2026-09-28. [^12]: [A.R.S. § 20-410: Validity, disclosure, policy fees](https://www.azleg.gov/ars/20/00410.htm) — Arizona State Legislature; Subsection B requires surplus-lines notices to state insureds/claimants are ineligible for Arizona guaranty-fund protection for both foreign and domestic surplus-lines insurers; subsection C says taxes under § 20-416 apply to broker service fees. Accessed 2026-09-28. [^13]: [15 U.S.C. § 8202: Regulation of nonadmitted insurance by insured's home State](https://uscode.house.gov/view.xhtml?req=%28title%3A15+section%3A8202+edition%3Aprelim%29) — U.S. House of Representatives, Office of the Law Revision Counsel; § 8202(a): nonadmitted placement is subject solely to insured's home-State requirements, except as otherwise provided; § 8201 addresses exclusive home-State tax authority. Accessed 2026-09-28. [^14]: [Licenses](https://www.at-bay.com/licenses/) — At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21. [^15]: [Licenses and Carriers](https://www.coalitioninc.com/legal/licenses) — Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535.. Accessed 2026-09-22. [^16]: [Insurance Producer Licenses](https://www.corgi.insure/broker-licenses) — Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown.. Accessed 2026-09-28. [^17]: [About Hiscox US Insurance](https://www.hiscox.com/about-hiscox-insurance) — Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16. [^18]: [Licenses](https://www.nextinsurance.com/insurance-licenses/) — ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885.. Accessed 2026-09-28. [^19]: [About Risklytics](https://www.risklytics.ai/about/) — Risklytics; What we do; Who we insure; Licensing; Agency licenses table dated 2026-09-10. Accessed 2026-09-16. [^20]: [Insurance Licenses by State](https://www.techinsurance.com/legal/licenses) — TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number.. Accessed 2026-09-28. [^21]: [Licenses](https://www.vouch.us/legal/licenses) — Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict.. Accessed 2026-09-15. Updated 2026-09-28. This guide is informational and does not determine whether a policy is available or meets your needs. [Editorial policy](/editorial-policy). 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