We specialize in AZ Contractor Bonds of all types: AZ License Bonds, AZ Taxpayer Bonds, Bid/Performance Bonds, Payment Bonds. Although we bond many types of businesses, the construction industry and the contractors working in it are our main focus.
Why Should You Choose BondingAmerica.com?
Surety companies are NOT created equal. There are three things you should consider about a bond company before purchasing a bond. You should look at the Indemnity Agreement, the price and the credit requirements.
*Indemnity Agreement: found on the bond application, this agreement is between the bonding company, the contractor and the Arizona Registrar of Contractors. The indemnification agreement for most companies are very different. Many bonding companies have inserted clauses that require a contractor to PAY IN FULL UPON DEMAND an amount equal to 125% of the face value (penalty) of the bond. Some bonding companies even require posting an amount equal to 125% of the face value of the bond if the company is exposed to a contingent liability or claim. To add insult to injury, some indemnification clauses require the contractor to pay 125% of the face value of the bond if a judgment is entered against them when the judgment is granted. ALL BONDS ARE NOT THE SAME AND THE CHEAPEST BONDS MAY HAVE SEVERE BACKEND PENALTIES YOU SHOULD AVOID! Our indemnity agreements are always easy to read and straight forward. If the bonding company pays a claim, you pay it back. Please, carefully read the Indemnification Agreement of any bond you purchase!
*Price: We strive to keep our prices the lowest in the industry. In fact, we have not changed our prices in 13 years. All of our bonds are written through an A+ rated surety company which means you are buying the best quality bond money can buy and at a great price.
*Credit: Most bond companies use your credit score to determine your bond premium. They quote you a price based on perfect credit which is difficult in these economic times. All of our license bonds are done with no credit check and guaranteed low prices. Our prices with NO credit check beat the competitors best credit price!
What is a BOND?
In essence, the license bond in a loose interpretation is a "loan" to the principal or indemnitor (the one who signs the bond and becomes financially responsible for repaying the bonding company if the bond is claimed). A bond is a promise equal to the title of the bond which states that you either fulfill the promise or you pay the penalty of the bond.