Arkansas Residential Roofing Bond: A Comprehensive Guide
November 19, 2021
This guide provides information for insurance agents to help their customers obtain an Arkansas Residential Roofing Bond
At a Glance:
- Average Cost: Between $113 to $750 per year based on the applicant’s credit
- Bond Amount: $15,000
- Who Needs it: All residential roofing contractors operating in Arkansas
- Purpose: To ensure the public will receive compensation for any damages should the contractor breach contracts made with consumers or fail to pay for labor and materials
- Who Regulates Residential Roofers in Arkansas: The Arkansas Contractors Licensing Board (CLB)
Arkansas Code 17-25-604 dictates that effective January 1, 2022, all residential roofing contractors operating in Arkansas must register with the CLB. Previously, residential roofing contractors were required to obtain a Home Improvement Roofing License. However, the CLB created a separate Residential Roofing Registration to better delineate between the broader home improvement contractors and roofers. To provide financial security to consumers if a roofer acts unethically, roofers must purchase and maintain a surety bond to be eligible for registration. Contractors who have a Residential Builders or Residential Remodelers License do not need to obtain a registration.
What is the Purpose of the Arkansas Residential Roofing Bond?
Arkansas requires residential roofers to purchase a surety bond as part of the application process to obtain a roofing registration. The bond ensures that the public will receive compensation for financial harm if the roofer fails to comply with the regulations set forth in Arkansas Code 17-25-604. Specifically, the bond protects the public in the event the roofer breaches any contracts made with consumers or fails to pay for materials and labor. In short, the bond is a type of insurance that protects the public if the roofer acts unethically.
How Can an Insurance Agent Obtain an Arkansas Residential Roofing Bond?
BondExchange makes obtaining an Arkansas Residential Roofing surety bond easy. Simply log in to your account and use our keyword search to find the “roof” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
Is a Credit Check Required for the Arkansas Residential Roofing Bond?
Surety companies will run a credit check on the residential roofing contractor to determine eligibility and pricing for the Arkansas Residential Roofing Bond. Contractors with excellent credit and work experience can expect to receive the best rates. Contractors with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the contractor’s credit.
How Much Does the Arkansas Residential Roofing Bond Cost?
The Arkansas Residential Roofing Surety Bond can cost anywhere between $113 to $750 per year. Insurance companies determine the rate based on a number of factors including your customer’s credit score and experience. The chart below offers a quick reference for the approximate bond cost on the $15,000 bond requirement.
$15,000 Residential Roofing Bond Cost
|Credit Score||Bond Cost (1 year)|
|625 – 799||$150|
|600 – 624||$375|
|575 – 599||$450|
|500 – 574||$750|
*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.
Who is Required to Purchase a Bond?
Arkansas requires all contractors who perform roofing, roof decks, and roofing sheet metal projects costing more than $2,000 to purchase a surety bond prior to obtaining a business registration. As mentioned above, contractors holding a Residential Building or Residential Remodelers License do not need to apply for a Residential Roofing Registration. However, contractors who have a Home Improvement License with a classification of either roofing, roof decks, or roofing sheet metal are required to obtain this registration and purchase a bond.
How Do Residential Roofers Apply for a Registration in Arkansas?
Residential roofers in Arkansas must navigate several steps to secure their registration. Below are the general guidelines, but roofers should refer to the application packet for details on the process.
Registration Period – The Arkansas Residential Roofing Registration expires annually and must be renewed before the expiration date
Step 1 – Purchase a Surety Bond
Residential roofing contractors must purchase and maintain a $15,000 surety bond
Step 2 – Purchase Workers’ Compensation Insurance
Contractors with one or more employees must purchase workers’ compensation insurance coverage
Step 3 – Complete the Application
All Arkansas Residential Roofing Registration applications should be mailed to the following address:
Contractors Licensing Board
4100 Richards Road
North Little Rock, Arkansas 72117
Contractors are required to complete the application in its entirety, and pay a $20 filing fee.
How Do Arkansas Residential Roofers Renew Their Registration?
Residential roofers can renew their registrations online here. The Arkansas Residential Roofing Registration expires annually and must be renewed before the expiration date.
What Are the Insurance Requirements for the Arkansas Residential Roofer Registration?
Arkansas requires all residential roofers with one or more employees to purchase workers’ compensation insurance coverage. Residential roofing contractors must purchase and maintain a $15,000 surety bond.
How Do Arkansas Residential Roofers File Their Bond?
Residential roofers should mail the completed bond form, including the power of attorney, to the following address:
Contractors Licensing Board
4100 Richards Road
North Little Rock, Arkansas 72117
The Arkansas Residential Roofing surety bond requires signatures from both the surety company that issues the bond and the contractor. The surety company should include the following information on the bond form:
- Legal name, address, phone number, and federal ID number of the entity/individual(s) buying the bond
- Surety company’s name, address, and phone number
- Date the bond is signed
- Date the bond goes into effect
What Can Arkansas Residential Roofers Do to Avoid Claims Against Their Bond?
To avoid claims against their bond, residential roofers in Arkansas must follow all registration regulations in the state, including some of the most important issues below that tend to cause claims:
- Do not breach any contracts made with consumers
- Pay all material vendors and laborers
What Other Insurance Products Can Agents Offer Residential Roofers in Arkansas?
Arkansas does not require residential roofers to obtain any form of liability insurance as a prerequisite to obtaining a business registration. However, most reputable contractors will seek to obtain this insurance anyway. Bonds are our only business at BondExchange, so we do not issue liability insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Arkansas Residential Roofer Customers?
Arkansas conveniently provides a public database to search for active residential roofers in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.