An Arizona utility bond helps a utility company recover from its losses when someone fails to pay their utility bill. Utility companies will often require people considered high-risk to obtain one of these surety bonds before they're given access to utilities.
When someone fails to pay their utility bills and begins to accrue a substantial debt to a utility company, the company may file a claim against the Arizona utility deposit bond for compensation equal to the unpaid bills. The surety agency that backs the bond guarantees payment for valid claims, meaning utility companies always have a way to get compensation for unpaid bills. The bond holder (eg. the person with unpaid bills) must pay the surety back for any settled claims.
The utility companies decide who needs a surety bond and for what reason. Those reasons typically fall into two categories. First, a person may need a bond because they have a history of unpaid utility bills. Second, a business may need a bond if it expects to consume large amounts of electricity, gas, or water (a beverage factory, for example). When Arizona utility bond requirements exist, someone can't get utilities activated until they prove they have a bond - so get one ASAP. Viking Bond Service can return you a quote for a bond within just 24 hours!
It's an easy process: Complete a bond application, submit to a credit check, supply a copy of the utility bond requirements, and, if necessary, turn over any additional documentation the surety agency asks for. The surety will create a quote for the bond price based on the application information. Pay the quoted price, and the bond activates immediately.
Bond prices (called premiums) depend on a few factors. The utility company decides how large the bond must be, referring to the total amount the bond will pay in claims. The bond company decides the size of the premium. Expect it to be a small percentage of the bond total. The applicant's credit determines the final amount, with higher credit scores meriting lower bond prices. If you're worried about bad credit hurting your chances of getting a bond, work with Viking Bond Service.
You're focused on getting utilities turned on. The bond requirement is just a formality, and probably an unwanted one at that. We pledge to make the bond process fast and easy, and to find you a competitive price for your bond. Count on us to deliver the highest caliber of service and support - starting with your first contact!
Request a quote for a bond at your convenience. If you have questions about utility bonds specifically or surety bonds generally, our team is here to help. Contact us here or call us at 1-888-278-7389.
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