Surety Bonds for Arkansas Public Construction

Arkansas public construction can require separate bid security and a statutory payment bond. For State-agency construction covered by § 19-4-1405, the 2025 act says bid security is not required at or below the § 22-9-203 amount ($50,000); above it, the statute specifies a cashier’s check or corporate bid bond with the agent’s power of attorney and caps bid-security liability at 5% of the bid. The older § 22-9-203 text uses different wording at exactly $50,000, so confirm the agency’s applicable provision. The separate public payment-bond trigger is above $50,000.

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.

Arkansas Surety Bonds Requirements

Requirement	Details
Public-construction payment bond	A public construction contract exceeding $50,000 requires a payment bond equal to the contract amount. Act 986 specifies covered labor and material claims and requires filing with the county circuit clerk before work begins. ¹
State-agency bid security	For State-agency construction under § 19-4-1405 (excluding the State Highway Commission and Arkansas Department of Transportation), the 2025 act says bid security is not required for projects under or equal to the § 22-9-203 amount ($50,000). Above $50,000, each bid needs a cashier’s check or corporate bid bond and the agent’s power of attorney; liability is limited to 5% of the bid. The 2021 § 22-9-203 text separately excepts only projects under $50,000 from its check-or-bond clause while saying no bid bond is required at or below $50,000. Confirm with the agency how it applies those overlapping clauses at exactly $50,000. ^2,⁴

Requirement

Details

Public-construction payment bond

A public construction contract exceeding $50,000 requires a payment bond equal to the contract amount. Act 986 specifies covered labor and material claims and requires filing with the county circuit clerk before work begins. ¹

State-agency bid security

For State-agency construction under § 19-4-1405 (excluding the State Highway Commission and Arkansas Department of Transportation), the 2025 act says bid security is not required for projects under or equal to the § 22-9-203 amount ($50,000). Above $50,000, each bid needs a cashier’s check or corporate bid bond and the agent’s power of attorney; liability is limited to 5% of the bid. The 2021 § 22-9-203 text separately excepts only projects under $50,000 from its check-or-bond clause while saying no bid bond is required at or below $50,000. Confirm with the agency how it applies those overlapping clauses at exactly $50,000. ^2,⁴

What Should You Watch for With Surety Bonds in Arkansas?

Do not confuse bid security with the payment bond
Bid security addresses a bidder’s failure to execute the contract and required bonds after award; the later payment bond protects specified labor and material claimants. For covered State-agency construction, 2025 § 19-4-1405 explicitly says no bid security is required at or below $50,000; above that amount it specifies a cashier’s check or corporate bid bond and agent’s power of attorney, with liability capped at 5% of the bid. The older § 22-9-203 text separately says no bid bond is required at or below $50,000 but excepts only projects under $50,000 from its check-or-bid-bond clause. Do not treat “no bid bond” alone as “no bid security”; confirm the agency’s applicable rule at exactly $50,000. ^2,^1,^3,⁴
Plan for county filing before mobilization
Act 986 requires the contractor to file the payment bond with the circuit clerk in the county where work occurs before construction starts and provide the letting party a file-marked copy. If it is not filed, the owner need not pay until those steps occur. ¹
Check the owner and project type
The $50,000 trigger is for public construction contracts with the State, subdivisions, counties, municipalities, school districts and other local taxing units. Act 986 separately addresses church, religious-organization and charitable-institution projects above $20,000; those are not public-owner projects and have a distinct bond rule. ¹
A payment bond has defined beneficiaries
The amended statute lists labor and material costs that can fall within the public payment bond, including wages, temporary facilities, equipment rental, permits, testing fees, fuel and certain project-related premiums and taxes. Confirm the statutory bond form and identify the bond number and county filing before supplying the job. ¹

Which Surety Bonds Providers Have Arkansas License Records?

These providers publish a national listing for Surety bonds; the license records below name the licensed entities and roles. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Arkansas. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

TechInsurance
Insurance producer · checked 2026-09-28
Specialty Program Group LLC
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. ¹⁷
TechInsurance arranges surety bonds for small businesses.

Who Regulates Insurance in Arkansas?

Arkansas Insurance Department

The Arkansas Insurance Department licenses resident and nonresident producers and business entities, accepts insurance complaints, and provides links to company and producer license searches. It operates as a division of the Arkansas Department of Commerce. ^5,^6,^10,⁷

Website: Regulator website
License lookup: Search licensed producers
Complaints: File a complaint
Phone: (800) 852-5494

Surplus-Lines Tax and Stamping Office in Arkansas

Reported tax rate. 4% when Arkansas is the insured's home state ^8,^9,¹¹

Arkansas's broker filing instructions set a 4% surplus-lines tax. Federal law assigns nonadmitted-insurance regulation and tax to the insured’s home state; for a multistate policy, ask your broker to show the home state and the premium allocation used for the Arkansas filing. Arkansas law requires the contract to disclose that the state's property-and-casualty guaranty protection does not apply.

What Should You Ask Before Buying Surety Bonds in Arkansas?

Is this State-agency construction under § 19-4-1405, or a State Highway Commission/ADOT project or local public-owner contract under a different procurement rule?
At the $50,000 boundary, which bid-security provision does the awarding agency apply, and what form, amount, and deadline does the solicitation specify?
Who is the obligee and what county circuit clerk will receive the bond before work begins?
What indemnity agreement and collateral does the surety require, and who in the business must sign it?

Surety Bonds in Arkansas: Frequently Asked Questions

Is Arkansas bid security the same as a public payment bond?

No. Bid security addresses failure to sign the contract and furnish required bonds after award. The payment bond secures specified labor and material claims under the construction contract. ^2,^1,³

Does Arkansas automatically require a statutory payment bond for every private job?

The cited $50,000 rule covers public construction contracts. Act 986 separately authorizes a private real-estate owner to require payment and performance bonds by contract; it is not a blanket statutory bond mandate for all private work. ¹

Who are the principal and obligee on an Arkansas public payment bond?

The contractor awarded the contract is the principal and furnishes the bond to the party letting the public construction contract. The surety guarantees the payment obligation for statutory labor and material claimants, while bid security protects the public against a bidder’s failure to sign and furnish the required bonds. ^1,^2,³

Sources for Surety Bonds in Arkansas

1
Act 986 of 2021, HB 1855. Arkansas General Assembly; Sections 2 and 7, amending Ark. Code §§ 18-44-503 and 18-44-508; §§ 18-44-506–507 on bond conditions and filing. Accessed 2026-09-28.
2
Act 440 of 2021 (SB 305), amending Arkansas Code § 22-9-203. Arkansas General Assembly; Sections 5–6, pp. 2–3; § 22-9-203(a), (c)(2)(A)(ii)–(iii); approved 2021-03-24. Accessed 2026-09-28.
3
Arkansas Code § 22-9-203, archived agency copy. Arkansas Department of Education, Division of Elementary and Secondary Education; Subsection (c)(2)(B), bid-security purpose only; copy states current through 2019. Not used for the current threshold or any current amount cap. Accessed 2026-09-28.
4
Act 419 of 2025 (HB 1508), Title 19 recodification. Arkansas General Assembly; §§ 1, 2, 373, 374 and 376; recodified Ark. Code §§ 19-4-1403 and 19-4-1405(a), (d)(1)(A)–(B); 2025-03-25 approval; effective 2025-07-01. Accessed 2026-09-28.
5
Arkansas Insurance Department. Arkansas Insurance Department; Official agency homepage. Accessed 2026-09-28.
6
Licensing. Arkansas Insurance Department; Licensing Division guidance and state-based systems lookup for Arkansas agent and agency licensees. Accessed 2026-09-28.
7
File A Complaint. Arkansas Insurance Department; Online complaint filing for insurance providers, including agents and companies. Accessed 2026-09-28.
8
Surplus Lines Brokers Filing. Arkansas Insurance Department; Current broker filing instructions state that 4% broker tax must be remitted. Accessed 2026-09-28.
9
23 CAR § 201-104: Endorsement of contract. Arkansas Code of Rules; Required surplus-lines contract disclosure: no Arkansas P&C Guaranty Act protection and 4% tax collected from insured. Accessed 2026-09-28.
10
Property and Casualty Insurers. Arkansas Insurance Department; Company Search verifies whether an insurer is licensed in Arkansas. Accessed 2026-09-28.
11
15 U.S.C. § 8202: Regulation of nonadmitted insurance by insured's home State. 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.
12
Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
13
Licenses and Carriers. 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.
14
Insurance Producer 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.
15
About Hiscox US 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.
16
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.
17
Insurance Licenses by State. 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.
18
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.

Surety Bonds for Arkansas Public Construction

What Is Surety Bonds?

Arkansas Surety Bonds Requirements

What Should You Watch for With Surety Bonds in Arkansas?

Do not confuse bid security with the payment bond

Plan for county filing before mobilization

Check the owner and project type

A payment bond has defined beneficiaries