Contractors working in the Green Valley, AZ area are required to purchase commercial bonds in order to legally do business in their chosen field, as it is a requisite for being issued a license. This provision provides homeowners and business owners with protection when hiring workers, as it provides surety for unfinished work, unpaid permits, damage done to property, and unpaid subcontracted work up to two years after the last services were performed. Contractor bonds can be purchased through your commercial insurance agency.
In Arizona, a professional must apply for a commercial bond amount that corresponds with his or her labor classification. In addition, the laborer will need to project their estimated gross volume for the year and must obtain commercial bonds for approximately that sum total. Bonds exist in several different types: payment bonds that ensure that subcontractors will be paid, performance bonds that provide surety for nonperformance, and bid bonds that protect project owners from successful bidders who choose not to come under contract.
Bonds are continuous, are without a termination date, and a contractor may be required to pay a premium periodically to the issuing insurance company. A company can cancel a bond, but they must provide 30 days notification, during which a contractor is required to find a substitute to keep from having their license suspended.
Insurance Center of Green Valley Can Assist You
If you need to purchase commercial bonds, the Insurance Center of Green Valley is here to answer all your questions. We are experienced in helping the residents of Green Valley, AZ with all their commercial insurance needs, and we consider it a privilege to work for you. Contact us to speak to one of our friendly representatives, and we will find the right commercial insurance package to meet all your needs.