1688 W. Adams Street, Phoenix, Arizona 85007
E: email@example.com l P: 602.542.3578 l F: 602-542-0466
Douglas A. Ducey l Governor
Mark W. Killian l Director
roof of Financial Security
Please Reference Arizona Revised Statute 3-3615 for specific details.
The Arizona Department of Agriculture (AZDA) - Pest Management Division (PMD) will only accept the
Proof of Financial Security document located on the AZDA website (https://agriculture.az.gov/download-forms).
No other Certificates of Insurance will be accepted (i.e. Acord Certificate of Liability Insurance form).
A Business Licensee is required to provide proof of financial security in an amount no less than
$500,000.00 at all times during the licensing period.
General Aggregate – this is the maximum the insurance company will pay out.
The Proof of Financial Security must provide the deductible amount of the policy: If an insurance
policy provides for a deductible, the deductible amount shall not exceed one per cent of the total financial
security for each occurrence. If the deductible amount is in excess of one per cent of the total financial
security for each occurrence, the business licensee shall provide other security as provided in this subsection
or other evidence of financial security for the excess deductible amount.
Example: If your General Aggregate is $2,500,000.00; your deductible cannot exceed $25,000.00
If certified in the Wood-Destroying Organism Treatment & Inspection Category: the Business Licensee is
required to have an endorsement with a minimum of $100,000.00 pursuant to A.R.S. § 3-3615 (3)(b) for
Termite Damage due to Negligent Treatment.
If certified in the Wood-Destroying Organism Treatment & Inspection or Wood-Destroying Insect
Inspection Category, and performs Wood-Destroying Insect Inspection Reports (WDIIR): the Business
Licensee is required to have an endorsement with a minimum of $100,000.00 for errors and omissions (E & O)
contained in the reports pursuant to A.R.S. § 3-3615 (3)(c). Business Licensees that do not provide Wood-
Destroying Insect Inspection Reports are not required to have this endorsement.
If financial security is in the form of liability insurance, a licensee shall maintain a coverage endorsement
for pesticides and herbicides, fumigation, care, custody and control, rights-of-way, wood-destroying insect
inspection report errors and omissions, and pollution transit for its applicable license categories.
(1) Industrial and Institutional: pest management in or about a residential or other structure excluding anti-
microbial pest management, fungi inspection, or pest management covered by another certification category.
This includes public health pest management such as adult mosquitoes.
(2A) Wood-destroying organism inspection & treatment: inspecting for the presence or absence of wood-
destroying organisms and treating for wood-destroying organisms in or about a residential or other structure by
a means other than use of a fumigant.
(2B) Wood-destroying insect inspection: inspecting for the presence or absence of wood-destroying insects
only and excluding preparing treatment proposals.
(3) Ornamental & Turf: pest management, including weeds, in the maintenance of ornamental trees, shrubs,
flowers, and turf by a means other than use of a fumigant.
(4) Right-of-Way: pest management, including weeds, in the maintenance of public roads, electric powerlines,
pipelines, railway rights-of-way or other similar areas by means other than use of a fumigant.
(5) Aquatic: pest management, including weeds and mosquito larvae, in standing or running water.
(6) Fumigation: pest management using fumigants.
(7) Wood preservation: application of pesticides directly to structural components of wood or wood products,
which are not part of an existing structure normally habitable by persons, to prevent or manage wood
degradation by wood-destroying organisms including fungi and bacteria.