As a business owner, you know first-hand that there are many decisions and moving parts that make your company successful. And your insurance coverage is a key component of making your business prosper since it affects customer and employee perception of your company. That’s because most of your audiences are likely searching for a business that is licensed, bonded, and insured when they select a business to hire/work for.

One important type is bond insurance, which may be a legal requirement in your industry, but is always a smart investment. It can be a huge benefit for growing your customer base, especially during small business administration and acquiring leads you can follow up.

Bond Insurance Basics

Bonds guarantee your customers payment if your company does not meet conditions laid out in your contract’s terms. This business insurance agreement provides peace of mind to those who do business with you and helps establish trust in your relationship. Eventually, this can get the ball rolling for a long-term partnership if your teams continue to deliver the products and services you promise.

Many people confuse surety bonds with professional liability insurance (called E&O) and workers’ compensation insurance, which are not the same thing. Insurance carriers designed E&O to protect the insured like your business from losses while surety bonds safeguard third-party companies. Finally, workers’ comp will fund your employees in case of injuries they incure on the job.

We recommend opting for both plans if your business has the cash to afford them and bundling them together with your insurance company for a discount. Especially if your credit score is not high when applying for bond insurance, it is critical to save wherever possible.

How Bond Insurance Works for Your Business

It can be confusing when you stare at a surety bond contract for the first time. There are specific insurance terms denoting several involved parties you should know. They will help you understand how bond insurance works for and benefits your business with future leads and increased employee retention.

1. The first is the principal, which is your business that purchases the bond. Whatever hiring company you collaborate with may require a surety bond, or you may desire one because it guarantees your customers the deliverables you promise. John Maxwell says that you can build the trust of others, including your customer base, by maintaining integrity.
2. The obligee is the company or customer who hires your business. The surety bond protects the obligee from any fraudulant or severe work problems the principal (your business) causes. In these cases, they will receive compensation.
3. The third party is the surety company or the financial organization selling the bond to the principal (you). If your business does not live up to the terms and conditions in your contract with the obligee, the surety company will pay out to satisfy the claim. They will seek you for reimbursement afterward to cover the costs.

Benefits of Bond Insurance

Bond insurance certifies that your company will fulfill the terms of the contract. If you fail to do so, the obligee can file a claim with the surety against the bond to recover their losses. Although a surety bond protects the customer, your business receives strategic advantages from purchasing the bond.

Your company will receive more credibility in your industry for having this type of insurance and become a reliable and reputable name over time. Every successful business relationship in your customer base will compound on another, highlighting your brand as a name people can trust.

In the end, potential clients will be more comfortable beginning the process of working with you since they can receive reimbursement if there are performance issues. You provide a risk-free opportunity for them to experience your excellent products and services, and entice them to continue working with you.

What Does Bond Insurance Cover?

There seems to be an endless list of bond insurance choices in Arizona, including License & Permit Bonds, Bid Bonds, Environmental Bonds, and real estate broker bonds. Each surety bond type covers different industries and aspects of your business, so you need to educate yourself on them to know the policy that’s right for you.

1. Commercial or Performance Bonds ensure that your business performs the work your customer contracts you to provide.
2. Contract Bonds are another type of surety bond that the construction industry usually requires. For example, parties in this bond can specify the expected completion time, project materials, and various other deliverables. Contract bonds can also protect your customers from incomplete projects, covering them even if your company goes bankrupt before you complete the project.
3. There are also Fidelity Bonds, which refer to loyalty and reliability. A fidelity bond protects your business against employee theft, embezzlement, or other dishonest employee actions.

Arizona Insurance Experts

In every circumstance, you can only obtain a surety insurance bond from an insurance carrier. And you can worry about getting ripped off when you work with a single company and look at one quote. That’s why we offer personalized bond insurance policies that check 40+ carriers so you can obtain the cheapest, comprehensive plan.

We have proudly served the Casa Grande and now Maricopa Communities since 2004. Our professional agents will shop the nation’s top carriers to find you the absolute best insurance rates with the best coverage to meet your needs. Call or text us today at (520) 836-3244 to get more information on state requirements, insurance providers, and bond premiums.

We would love to get you started comparing policies so you can get your best rate!

Excise tax bonds can come into play in multiple industries and vary by state and county.  For instance, in Maricopa county ADOT has issued Transportation Excise Tax Bonds to help fund the design and/or construction of certain highways within Maricopa County. Excise tax bonds may also be used in liquor, state and fuel industries.

What Are Excise Tax Bonds?

“A special tax bond is a type of municipal bond that is repaid with revenues derived from taxation of a particular activity or asset. These bonds are repaid with either excise taxes or special assessment taxes, but not by ad valorem taxes” (https://www.investopedia.com/terms/s/specialtaxbond.asp). In layman’s terms a special tax bond is raised by a federal, state or local government entity. These funds are generally used for special projects such as improving highways, public schools, etc. Investors that purchase these bonds earn interest and then when the bond matures are paid back the principal.

Bonds are issued for a specific purpose and the funds can only be used for that purpose. Investors need to be paid interest on their investments which is where excise taxes come in. Excise taxes are implemented on a specific item to then pay the interest to the investors. For example, if a bond is issued to help fund cancer research, a tax may be levied against the sale of cigarettes to produce excise tax revenue.

Excise Tax Bonds in Maricopa County

Sales tax bonds or, excise tax bonds are types of surety bonds, which many businesses are legally required to have to operate in Casa Grande and Maricopa County. These types of tax bonds are typically required on “luxury” items such as cigarettes, alcohol, gambling, etc. The state of Arizona reserves the right to require businesses to post a bond to make sure that the business can pay the tax amount. In this manner, the state protects its potential revenue and earnings.

How Do These Bonds Work

There are three parties involved in these types of bonds.  There is the principal, the obligee and the surety. Here’s how each party is involved in the process:

The Principal: The principal purchases the bond to ensure the revenue is ultimately paid. If you need are required to provide a bond you would act as the principal.

The Obligee: The obligee is the government entity that is requiring the bond. The obligee is the entity that’s financial interests are protected by the bond.

The Surety: The surety is the bond company (us). We can issue the bond and provide financial security to the obligee. We can discuss your specific industry needs and ensure that you meet state and local bond requirements and bond amounts for the best price possible.

How Much Will Your Excise Tax Bonds Casa Grande Cost?

There are many different factors that go into determining the cost of your bond.

• Risk – Think of your surety company like an insurance company. If you don’t hold up your end of your financial and business obligations, the surety has to pay the bond to the government entity. The higher the risk that the surety has to pay out the bond, the higher the cost of the bond. 
• Credit Score – Credit scores are often used to determine your fiscal responsibility. Businesses with good credit are typically rewarded with lower rates and costs while lower credit scores may result in higher costs. 
• Previous History – If you have a strong track record of successfully meeting your businesses financial obligations you can often obtain better rates than a new or struggling business. 
• Bond Amount – The higher your required bond amount the higher your rates/cost. Conversely, the lower your bond amount the lower your rate/cost.

If you are looking to do business in Casa Grande or Maricopa County and think you need a bond, give our office a call. Our experienced staff can walk you through the process and requirements and make sure you get the bond you need so that you can focus on what’s important – running your business.

If you are in the energy business you are probably familiar with energy surety bonds. These types of permit bonds are regulated by government agencies and in most cases required by the state and/or county. As an operator of a type of energy business such as wind, solar, or oil drilling installation of new sites or operation of existing entities you will be required to follow a slew of laws and regulations.

Regulations:

This can include obtaining proper permits, following all compliance regulations and carrying the appropriate insurance to protect the state and/or county in the event you don’t meet your obligations.

For instance, if you want to install a gas pipeline, you are required by Maricopa county to obtain a permit. You must complete an application as well as payment and submit it to MCDOT for approval. Your application may be returned with comments or items that are required to be changed prior to being approved. When you are granted approval, and all your other obligations have been met you can begin work. Some projects will have inspections throughout and all projects should notify MCDOT upon completion. As you can see, the county has a vested interest in these types of undertakings and regulates them as such.

Surety Bonds:

Surety bonds are like a type of insurance for the state or county. You, as the principal of the project, are required to carry a surety bond for any new or ongoing energy activity in Casa Grande or Maricopa county. The surety bond protects the county financially in the event that you do not live up to your responsibilities and that lack of performance has a negative financial impact.

The Mechanics of Surety Bonds:

Insurance companies issue a surety bond to the principal, in this example you, and name the County as the obligee. As the principal, you are responsible for the cost of the bond. Then, if you fail to fulfill your obligations, the obligee can file a claim which the surety bond will pay. The bond company can then in turn recoup the money from you. There is typically an annual premium for the bond for the length of your project.

Which Bond is Right For You?

There is no one size fits all solution here. You want the type of surety bond required, for the amount of coverage you need without overpaying for coverage you don’t. Some items that will help determine the type and amount of the best bond for you include:

The type of project you are working on: if your project is potentially more expensive or complex, the cost to insure against financial loss may be greater.

The number of sites: Multiple locations/sites mean more complex projects and opportunities for things to go wrong. This typically increases the risk and expense of a bond.

Where you live: Your state and county will have specific bond minimums that will have to be met so your location is an important factor.

Your obligations (and the length of said obligations): Your financial obligations and the time frame of the project can both impact the cost of your bond. The longer your project and the more financial responsibility, the greater the potential risk.

Your credit: The bond company doesn’t want to deal with a claim against you or their bond. It acts like any other insurance company in that the lower the risk, the less expensive the fees. Your credit is taken into account when reviewing your bond application. If you have good credit, it can help lower your costs, while a lower credit score can do the opposite.

If you are navigating the world of surety and permit bonds, leave the heavy lifting to us so that you can invest your time in your project. Whether you want to install a new wind generator or are taking over existing oil wells we can get you through the bond process in no time at all. Our team of experts have years of experience making sure our customers meet their legal obligations and have the bond that they need. Give our office a call and give us the opportunity to earn your business today.

Oil wells, water wells and natural gas wells are like many other functional items in that they have a life cycle. After a well has been drilled and produced it must be “plugged and abandoned” for the safety of the environment and community around it. Plugging and abandonment are legal requirements, which can vary by county and state.

What is Well Plugging & Abandonment?

When a well has met the end of its life cycle it must be plugged. There are some important steps to effectively plug a well. It should be noted that you can hire a licensed specialist to help with this process. Their expertise in the area and with the local soil can be invaluable. First you must assess the depth and width of the well. Next, all debris and materials must be removed. Once the well has been emptied it should be cleaned and disinfected and as much casing has possible should be removed. Finally, the well must be plugged with approved materials. Depending on the type of well and state that your well is located in, you may need to submit plugging paperwork to local and/or federal agencies.

Well abandonment is a bit of a misleading term. It doesn’t mean the owner just walks away from the well. Instead, this term refers to a well that has been decommissioned. Properly decommissioning a well is a critical final step in the lifecycle of the well.

If you are the owner of a well in Maricopa County, you are legally required to carry a plugging and abandonment surety bond. The Arizona Department of Environmental Quality, Oil and Gas Conservation Commission handles the issuing of permits and is responsible for compliance of well operation. Your surety bond is required to help ensure the financial responsibilities of your well are met. If you do not meet your obligations, the Commission can file a claim against the surety bond. If the issuer of the bond pays the commission you, or the principal on the bond, will then be responsible for repaying the bond issuer for the claimed amount (https://suretygroup.com/surety-bond/arizona-oil-gas-well-permit-bond/).

Well surety bonds can be issued as individual well bonds or blanket performance bonds. Required bond amounts in Arizona are as follows:

“1. For individual wells, an operator shall provide a $10,000 bond for each well drilled to a total depth of 10,000 feet or less or a $20,000 bond for each well drilled deeper than 10,000 feet, 2. For multiple wells, an operator shall provide one of the following blanket bonds to cover all wells: a $25,000 for 10 or fewer wells; b. $50,000 for more than 10 but fewer than 50 wells; or c. $250,000 for 50 or more wells” (http://iogcc.ok.gov/Websites/iogcc/images/Financial_Assurances_FINAL_web.pdf).

This type of bond is issued for the drilling of a new well, transferring an existing well to a new owner, assuming ownership of an existing well or reactivating an abandoned well. It covers the actions of drilling a well, plugging or repairing a well and restoring the well site.

Cost of Plugging & Abandonment Bonds

The fees incurred for this type of bond depends on multiple factors including:

1. The number of wells that need to be insured: The more wells that you have to insure, the increased risk of an issue that could cost the insurer. This, in turn, can raise the cost of your bond. 
2. Your credit history: The bond issuer will offer lower rates to those with a strong history credit. Whereas a poor credit history may increase your costs. 
3. Prior claims or issues: If you have had issues with prior wells or bonds, the cost of a new bond may increase.

An important item to note: the surety bond is not automatically released if the property is transferred. If you have an existing bond and want to be released from it due to transferring your well, you need to notify the Arizona Oil and Gas commission in writing. The transferee also needs to contact the commission accepting responsibility for the well and finally, the commission must approve the transfer.

You can obtain a plugging and abandonment bond in just a few minutes. We make this process as easy and painless as possible. If you need help obtaining the right bond, please contact our office. Our experienced team can help you navigate the legal requirements and get the bond that you need for a price you can afford.

Surety bonds are issued as a commitment that assumes liability if another party fails or defaults on an obligation that they have made. A surety bond involves three parties who enter a contract based on the provisions within a surety bond agreement. They may be required by governmental entities, by owners of a specific project or to maintain compliance in certain occupations or business markets.

There are three distinct parties to these bond agreements. The principal is the party that must satisfy the bonding requirement. Without securing a surety bond, the principal would be unable to conduct business with an obligee. The obligee is the party that instituted the bonding requirement. This may be an individual, government entity or organization.

The surety company is the third party to the agreement that is assuming liability on behalf of the principal. Issuers of surety bonds in Arizona must have met the requirements specified by Arizona law.

Contract Surety Bonds

Surety bonds are broadly categorized as either contract or commercial bonds. A contract bond may be necessary for contractors that are seeking to obtain licensure or to become eligible to bid on specific construction projects. The bond serves as a safety measure if the contractor fails to satisfy an obligation.

A contract bond will allow for financial compensation for the project owner (principal) if the project is not completed or is not completed correctly based on the terms of the agreement. Financial compensation from these bonds also may be used to pay others involved, such as suppliers or subcontractors that were not compensated.

Commercial Surety Bonds

There are also many types of commercial surety bonds. Often they are a requirement from a governmental entity. Some of the more common commercial surety bonds include the following:

• Those conducting business in certain industries or working in some professions may need to secure license and permit bonds. Some of these bonds apply to freight or mortgage brokers, automobile dealers, and more.
• Judicial or court bonds may be required among parties involved in legal matters.
• Probate, trustee or fiduciary bonds may be legally required. These apply to someone assuming a fiduciary or “entrusted” role for the property or assets of others. This includes an administrator appointed to manage a family’s estate.
• Some public officials may require bonding. These include government officials that oversee important public assets. An example may include those managing the treasury.
• Miscellaneous bonds are simply those unable to be classified within other categories. They may be required by those who accrue fuel taxes or consume significant utility resources, and many more.

Who Issues Surety Bonds?

Surety bonds may be issued by an organization that specializes in these products or those who offer a variety of related products. Often sureties are issued by certain divisions of insurance companies or those operating in other financial product markets. In Arizona, these organizations must be licensed to do business by the Department of Insurance.

When issuing surety bonds, these organizations undertake a process that is similar to the underwriting process conducted by insurers. The issuer of the bond must make an assessment based on the potential risk involved. The issuer may review the buyer’s credit history, the base of assets, and other indicators related to financial stability.

Permit Bond Overview

Certain businesses are required by law to complete pre-licensing requirements. License and permit bonds are generally among the provisions that are necessary for legal operation. These bonds are part of the overall commitment that is made to adhere to laws and regulations required by federal, state, and local agencies. License and permit bonds also protect the customers of the business, which may include consumers and governmental entities.

License and permit bonds can be viewed as insurance the business pays for the protection of others. Those who honor their commitments and abide by the law rarely have any claims made against their bond. If a claim is made against the bond and paid by the surety company, the business is then responsible for repayment.

Why Might a Permit Be Required in Maricopa County?

One local agency that has permitting requirements is the Maricopa County Department of Transportation (MCDOT). They require that a permit be obtained for projects involving the roads, which generally require bonding. Examples include repairs or installations of sidewalks, curbs, and underground utility lines. In some cases, structural projects that involve “signs, mailboxes, fences, and landscaping” will require permits.

General Surety Bond Requirements in Maricopa County

Some of the general bonding provisions or conditions implemented by MCDOT include the following:

• Parties may not cancel a bond until related work is completed and approved by the County, thus “releasing” the bond
• The surety bond issuer may only be deemed liable up to the amount of the bond
• If a project is not completed within the specified time, the bond may need to be extended for a short period
• If the project is well behind the completion schedule, the principal may be deemed as in default and a claim against the bond may occur
• If a claim is made, the issuer of the bond may reach a monetary settlement agreement or have another contractor complete the work according to the original provisions
• In some instances, there may be some unforeseen changes required to complete the work. A new bond is not required or additional “add-on” bond coverage is only necessary when the cost of the changes exceeds 20%.

Right-of-Way Permit Bonds in Maricopa County

MCDOT will always require bonds unless the work is being conducted by a public entity with a net worth that exceeds $1 million. For very small projects requiring temporary access a nominal $2,500 bond is sufficient.

Bond Requirements for Oversize or Overweight Permit in Maricopa County

In the interest of public safety, a special permit and bond may be required to move oversized or overweight loads on the roads in Maricopa County. Often these moving projects are required to be completed at night and a bond of at least $10,000 must be secured.

Arizona Agency Provides Permit Bonds

The Gebhardt Insurance Group is an established independent agency that offers a truly comprehensive group of products. Examples include insurance that protects homes, vehicles, and businesses and a variety of surety bonds. We look forward to speaking with you and encourage you to contact us at (520) 836-3244.

Similar to an insurance policy, a surety bond is a commitment to satisfy a “debt, default, or failure” of another party. There are three parties involved in these agreements. The obligee is the party that is having some type of project completed and is often a governmental entity. The principal is the contractor or another service provider that will be performing the work. The surety is the third-party that is insuring or assuming financial liability to protect the project owner (obligee).

There are two general types of surety bonds. These include contract surety bonds and commercial or miscellaneous surety bonds. As the name implies, a contract bond is based on a formal agreement or contract. Commercial bonds are typically required according to legal statutes. Types of commercial bonds include permit or license bonds that are required by law in a given jurisdiction.

Contract Surety Bonds

A contract surety bond applies to most construction projects. The contractor purchases a bond from a surety company. If the contractor does not fulfill their obligations, the surety company will provide the compensation necessary to the project owner. Contract surety bonds may be classified as bid, performance, payment, or warranty bonds.

Bid Bond

Contractors that wish to bid on a contract may be required to complete a bond form and secure a bid bond. These are issued to protect the project owner in case the contractor who was awarded the contract does not follow through. The surety company will evaluate the credibility of a contractor, which may “screen out” bidders who are not qualified. A surety company will only issue a bid bond to those they deem as reputable and qualified.

Performance Bond

A performance bond protects the project owner if the contractor does not properly complete a project. It also applies if there is a failure to adhere to the contract’s details and specifications. The Arizona Revised Statutes state that bonds must be issued by a “surety company or companies holding a certificate of authority” in Arizona. The amount of a performance bond is based on the full value of the contract.

Payment Bond

A payment bond is usually issued in conjunction with a performance bond. Payment bonds are issued by a bonding company to ensure that the project is completed without any liens. Any suppliers of materials or subcontracted providers may be compensated by a payment bond if they are not paid. A “payment only” bond is rarely issued.

Warranty Bond

A warranty bond is sometimes referred to as a maintenance bond. These are issued for the protection of the project owner in case it is determined that poor workmanship or defective materials were used. This applies for the term of the defined warranty period where the warranty bond is viewed as collateral.

Arizona Contractor License Bonds

The State of Arizona Registrar of Contractors has a requirement that all contractors have a bond as part of licensing. The amount required varies based on the specific trade license classification and their estimated volume of work. This requirement allows for either a surety bond or the contractor to make a cash deposit bond. For a residential contractor, an additional bond or deposit amount of $200,000 is required for a state recovery fund.

Surety Bond Provisions in Arizona

Arizona law specifies that bond requirements are met before executing any contract for “construction, alteration, or repair” of the following: 

• Public buildings or structures
• Public works or improvements for any county, city, or town
• Projects involving drainage, irrigation, flooding, electric, power, and more
• Any “tax levying” improvements in a district 

Agency Provides Contract Surety Bonds in Arizona 

The Gebhardt Insurance Group in Casa Grande is an established independent agency that has been serving the region for many years. Our team of professionals effectively determines the specific needs regarding bonds and insurance to protect individuals, families, and businesses. Contact our office today by calling (520) 836-3244.

What are miscellaneous surety bonds? The term miscellaneous refers to something that is diverse or having various traits.

Surety bonds are defined by the National Association of Surety Bond Producers as a “promise to be liable for the debt, default, or failure” of another party. This involves a third-party that contracts to guarantee that a party will satisfy an obligation. Three parties exist in a surety bond agreement.

• Principal: This is the party that is required to obtain a bond. It is generally a business or individual that acquires a surety bond as a way to qualify to conduct business with an obligee.
• Obligee: The obligee is the party that has implemented a requirement that any potential principal makes this pledge or guarantee. 
• Surety Company: This is the party that is assuming responsibility for the performance of the principal. A surety company is a recognized entity that has satisfied requirements to function in this role within a jurisdiction. 

Two General Categories of Surety Bonds

Contract bonds are contractor license bonds or bid bonds required to be eligible for construction projects. This bond is used for financial compensation in case the contractor fails to complete the project or to complete it properly. Bond funds may also be used in case of default to compensate material suppliers or subcontractors.

Commercial surety bonds are the type that include miscellaneous surety bonds. These bonds are often required by government statute, ordinance, or other provisions. Commercial surety bonds are generally classified among the following five categories.

• License and permit bonds apply to many different professions or industries as business service bonds. Examples may include automobile dealers, mortgage brokers, and more.
• Court bonds or judicial bonds may be a requirement for parties in judicial matters. Examples may include injunction bonds, appeal bonds, and more.
• Fiduciary or probate bonds may be required for those who are assigned or appointed to represent a trust or estate. Examples may include trustee bonds and executor bonds.
• Public official bonds are often a statutory requirement that acts as a protection for the public. They may apply if a government official commits wrongful actions. Examples may include treasurer bonds, notary bonds, and more.
• Miscellaneous bonds are any type of bonds that do not fit under the other four classifications. Examples may include fuel tax bonds, utility bonds, and more. 

Miscellaneous Surety Bonds

Bonds that do not have similar characteristics are categorized as miscellaneous. These are a form of commercial bonds. Examples may include warehouse bonds, title bonds, Airlines Reporting bonds, union wage and welfare bonds, and more. Those who operate in this realm are generally regulated by the same state agency that oversees the insurance market.

What is a Surety Bonding Company?

Surety bonds are commonly issued by affiliates or designated divisions of insurance companies or financial product providers. These entities will typically need to satisfy eligibility requirements that demonstrate financial strength. There are some similarities between surety bonds and traditional insurance products. One critical difference is that surety bonds are agreements between three parties instead of two.

Companies that issue surety bonds underwrite their bonds similarly to lenders and insurers.  A surety may evaluate a contractor’s credit history, assets, and overall character. These are variables used in determining whether a party is likely to satisfy their obligations. The surety companies use contracts called general agreements of indemnity for their protection before issuing bonds.

Surety Bonds for Telecommunications Licensing in the City of Phoenix

These are local bonds license and permit bonds that specifically apply to telecommunication providers in the City of Phoenix. New licensees must establish a $100,000 bond during the implementation phase. This requirement is later reduced to $50,000 for the duration of the lease. In addition to bond guarantees, licensees may be required to keep $40,000 in a qualifying account to further secure their obligations.

Surety Bonds for the Administration of Probate and Wills in Arizona

These are the types of bonds required by the state for personal representatives to an estate.  This requirement is waived if specified in the will. A bond is not required for representatives of a “national banking association” or those with a bank permit. This also applies to a title insurance company or certified trust business representatives.

Parties with an interest in an estate may petition for a bond. Courts may require bonds if they have “reasonable proof” that the estate administrator may be placing the petitioner at risk. The same applies to a trustee. A bond may be put in place to “secure the performance of the trustee’s duty.”

When the terms of a will do not specify the bond amount, a “best estimate” may be made. This may involve a need for appraisals to be made for assets such as real estate. The amount of the bond may be lowered if estate assets are placed into a secured account approved by the court.

Arizona IFTA Bonds

The Arizona Department of Transportation may require a bond that ensures a supplier of fuel will pay all applicable taxes. This bond is called an International Fuel Tax Agreement (IFTA) that protects the state. The rate may be up to a maximum of 15%, which is based on the credit history of the applicant.

Commercial Utility Agreement Bonds

The City of Mesa requires that commercial entities maintain a surety bond for utilities in addition to a commercial security deposit. The amount required is based on city estimates that equal 2.5 times the company’s maximum monthly billings. This requirement may be evaluated and potentially eliminated after thirty-six months. To qualify, their payment history must show all payments have been made promptly.

Independent Agency for Business Insurance and Surety Bonds in Arizona

The Gebhardt Insurance Group is an established insurance agency that works with individuals, families, and businesses to create customized insurance solutions. Our team of experienced professionals will identify the specific types of coverage you need. As an independent agency, we can compare options from dozens of carriers to find the best overall value. We look forward to speaking with you. Contact our office today at (520) 836-3244!