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Arizona contractor bond

need an Arizona
bond? here’s
how it works.

Find your amount in the ROC table, and see what the bond does.

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the short answer

Every Arizona contractor license needs a bond or cash deposit under A.R.S. §32-1152. The Registrar of Contractors sets the amount from a table by license type and yearly volume, from $2,500 for a small commercial specialty license to $100,000 for the largest commercial general contractors.

find your bond.

Tap your license type to see the amounts in the ROC table.

License type

residential specialty.

$4,250 if you expect less than $375,000 a year in volume, or $7,500 at $375,000 or more.

Who asks: Residential trade licenses, like R‑37 plumbing, R‑39 air conditioning or R‑11 electrical.

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what the bond does.

It isn’t insurance for you. It’s a promise to the people you work for.

Who it protects: The public. If a licensed contractor fails to perform or pay what the license law requires, a claim can be paid from the bond.
If a claim is paid: The bond company pays, up to the bond amount, then looks to you to pay it back. That’s the difference from insurance.
Bond or cash: Arizona accepts a cash deposit, or a certificate of deposit from a bank in Arizona, in the same amount. Cash stays with the state until two years after the license ends.
Keeping it active: The bond has to stay in force. If the bond company cancels, you and the Registrar get notice first, and the license is suspended unless you replace it.
When you grow: Crossing into the next volume band changes the amount. You can raise the bond any time, and lower it only at renewal.
Recovery fund: Residential contractors also pay into the Residential Contractors’ Recovery Fund or post a separate bond for it.
The law: Required for the license under A.R.S. §32-1152.

Sources: A.R.S. §32-1152, Arizona Registrar of Contractors bond information and license classifications. Last reviewed September 2026.

good to know.

Straight answers on Arizona contractor bonds.

How much is an Arizona contractor bond?

It depends on your license type and the yearly volume you expect. The Registrar of Contractors publishes a table: residential or commercial, specialty or general, each with volume bands. Your license type and your volume pick one amount, and a dual license adds the residential and commercial amounts together. The trade itself doesn’t change it.

Is the Arizona license bond the same as insurance?

No. The bond is a promise to the public that you’ll perform and pay what the license law requires. When a claim is paid from it, the bond company looks to you to pay it back. General liability protects you when your work damages property or hurts someone. A customer asking if you’re bonded and insured is asking two questions.

Can I post cash instead of a bond in Arizona?

Yes. Arizona accepts a cash deposit with the state, or a certificate of deposit from a bank in Arizona, in the same amount as the bond. The cash stays with the state until two years after the license ends. A bond costs a yearly premium instead and leaves that cash in your business.

Sources: Arizona Registrar of Contractors, A.R.S. §32-1152. Last reviewed September 2026.

Insurance words, in plain English: license and permit bond · performance and payment bond · bonding capacity