Arkansas Service Contract Provider Bond |
AmeriPro Surety Bonds | 844-589-9732
Service Providers – Arkansas
The Arkansas Department of Insurance regulates and licenses contract service providers. The term ‘contract service provider’ also refers to extended warranty or extended service plan.
Applicants for this license will require a minimum $25,000 surety bond.
Qualifying and the Premium
The amount of your Arkansas service contractor provider bond is the greater amount of:
- A minimum of $25,000 surety bond;
- Or, 5% of the gross amount received from consumers, minus claims paid, on the sale of service contracts which have been issued and that are active.
Our agency can accept the application from you directly over the phone. You, of course, will need to tell us the bond amount you require. As part of the underwriting process, there is also a credit review, and an applicant will need good credit to qualify through our agency.
If you are approved for this bond, you will qualify at a premium rate 1 ½%. Therefore, a $25,000 contractor bond will cost you $375; a $50,000 bond will have a premium of $750; and a $100,000 surety bond will have a premium of $1500.
Surety Bond Duration
Once issued, the Arkansas service contractor bond will have a term of one year. Thereafter, the bond’s premium will need to be paid again. An active surety bond must be on file with the Arkansas Department of Insurance as a condition of maintaining your license.
In some cases, it is likely that you may likely require a different surety bond amount based upon the calculations above.
Purpose of Your Surety Bond Requirement
The contract service provider bond requirement is a financial guarantee which ensures your compliance with Arkansas Code Title 4, Chapter 114, and protects your customers from acts of fraud or other unlawful activity committed by a licensed and bonded service contract provider.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit surety bonds throughout Arkansas.
Our agency also provides surety bonds nationwide.
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