The Arizona Registrar of Contractors (AZ ROC) has a 10-step process to becoming a licensed contractor in the Grand Canyon State. The good news? It does not require you to get a sponsor or talk about your feelings. It does require you to find and work with an insurance agent. I’m here to help.
The Ten Steps to Getting Licensed with the Arizona ROC Are:
1. Form a Legal Entity with the Arizona Corporation Commission
2. Choose Your Classification
3. Pass Your Exams
4. Submit All Background Checks
5. Submit Copies of Government Issued IDs
6. Complete Bonds*
7. Pay Fees
8. Complete Your Application*
9. Application Review by AZ ROC
10. Notification Upon Approval
There are two possible times when you will need to work with an insurance professional during the application process. Your first interaction is triggered by step six, Complete Bonds. I’ll tackle the second trigger, Complete Your Application, in a future blog post.
What is a contractor’s bond and why is it required? A construction bond is a form of protection for the owner against non-payment, lack of performance, company default, and warranty issues. Construction bonds are also known as contract bonds because they guarantee that the bondholder (you) will fulfill the terms of the contract.
These contractor’s license bonds will be continuous throughout the lifetime of your business. They will renew every two to three years depending on where you obtain your bond. The amount of your bond depends on what ROC license you are applying for and your estimated gross volume or sales. Credit scores will influence bond premiums.
In addition to your contractor’s license bond, Arizona requires you to obtain a surety bond for $200,000 if you are a residential contractor. If you need to purchase bonds as part of your application process, Wilson Insurance can help. The turnaround time for bonds is quick.
If you are new to Wilson Insurance, we have been helping Arizona contractors with their insurance since 1987. We are a second-generation, family-owned insurance agency in Mesa that is independent by design. Over the past ten years, many independent agencies have been purchased by private equity firms and conglomerates who decentralized their local footprint in favor of service centers and generalized appetites. This has led to widespread disruption in relationships between customers and their agents. As an alternative, Wilson Insurance’s niche focus and steady presence in The Valley have allowed for deep specialization and high-value relationships with customers and key carrier partners alike.
Your service team is designed with your experience in mind. That is why every call is answered by a live person, a designated COI specialist manages all certificates of insurance requests, we do not apply servicing thresholds to accounts by premium size, and you have access to both your producer and account manager at all times. We exist to serve you at Wilson Insurance.
Let’s connect and show you what Wilson Insurance can do for your business today!
Justin Chappell
VP Business Development
480-964-2400
justin@wilsoninsuranceaz.com