Arkansas Utility Deposit Bond Overview
- Purpose: To guarantee payment for utility services
- Who Needs It: Certain high volume utilities customers in Arkansas
- Bond Amount: Determined by the utility company based on usage
- Minimum Price: Typically 1% of the bond amount
What Is an Arkansas Utility Deposit Bond?
Arkansas utility deposit bonds help ensure that customers pay their utility bills in full and on time. Some utility companies require or offer surety bonds in place of a cash security deposit.
If a bonded client fails to pay a utility bill, the company can make a claim on the bond. If the claim is validated and paid by the surety, the client would be required to reimburse the surety company.
Who Needs a Utility Deposit Bond?
In Arkansas, the following providers may require a surety bond for electric, water or other utilities customers:
- Entergy Arkansas LLC
- Central Arkansas Water
- North Little Rock Utility
- Woodruff Electric Cooperative
- Carroll Electric Cooperative Corporation
- Centerpoint Energy
If you need a bond from a provider not listed here, please give us a call at 1 (800) 308-4358 for help.
How Much Do Utility Deposit Bonds Cost in Arkansas?
Once you verify your bond amount, you can apply for a bond quote. Typically, applicants pay 1–10% of the total coverage amount for their Arkansas utility bond.
Exact rates vary based on personal credit score. Get your personalized rate now.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does an Arkansas Utility Bond Work?
A utility deposit bond creates a legally-binding contract between a principal (you), obligee and surety provider (us).
| Bond Party | Description |
|---|---|
| Principal | The utilities customer filing the bond |
| Obligee | The utility company requiring the bond |
| Surety | The issuing surety provider |
Arkansas utility bonds are financial guarantees that customers of utility companies will pay their bills on time and in full.
If you fall behind on payments, the bond protects the utility company from loss up to the full bond amount. The surety provider backs your obligation to the utility service.
How Do I Get My Bond?
We make the utility deposit bond application process quick and easy. Follow these three steps to get bonded:
- Apply: Fill out a quick online application form.
- Quote: Receive your free quote within one business day.
- Pay: Complete the purchase online or over the phone.
We’ll typically email you the bond unless the utility provider requires the original bond form. Remember to file the bond with the utilities provider as instructed.
How Do I Renew My Bond?
If you need to renew your utility bond for another year, we’ll send you reminders in advance. Make sure the coverage amount is still correct. If so, simply pay the renewal invoice to extend coverage for another term.
If you need to update your bond, contact us at [email protected] with the new information.
