Auburn Plumber Bond: A Comprehensive Guide
March 16, 2022
This guide provides information for insurance agents to help their customers obtain an Auburn Plumber Bond
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $5,000
- Who Needs it: All individuals and businesses that act as plumbing contractors in the City of Auburn, Alabama
- Purpose: To ensure the public will receive compensation for any damages should the contractor fail to comply with contractor licensing law
- Who Regulates Plumbers in Auburn: The Auburn Finance Department
Auburn municipal code 12-18 requires all plumbers operating in the city to obtain a license with the Finance Department. The Auburn city council enacted the licensing laws and regulations to ensure that plumbers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, plumbers must purchase and maintain a $5,000 surety bond to be eligible for licensure.
What is the Purpose of the Auburn Plumber Bond?
Auburn requires plumbers to purchase a surety bond as part of the application process to obtain a business license. The bond ensures that the public will receive compensation for financial harm if the plumber fails to comply with the regulations set forth in Auburn municipal code 12-18. Specifically, the bond protects the public in the event the plumber fails to safely maintain all ditches and excavation sites or does not pay any required taxes and fees. In short, the bond is a type of insurance that protects the public if the plumber breaks licensing laws.
How Can an Insurance Agent Obtain an Auburn Plumber Surety Bond?
BondExchange makes obtaining an Auburn Plumber bond easy. Simply log in to your account and use our keyword search to find the “plumber” 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 Auburn Plumber Bond?
No, a credit check is not required for the Auburn Plumber bond. Because the bond is considered relatively low risk, the same low rate is offered to all plumbers operating in the city, regardless of their credit history.
How Much Does the Auburn Plumber Bond Cost?
The $5,000 Auburn Plumber bond costs just $100 per year.
Who is Required to Purchase the Bond?
Auburn requires plumbers to be bonded as a prerequisite to obtaining a business license. To paraphrase Auburn municipal code 12-18, a plumber is an independent business that installs and/or repairs pipes and fittings of water supply.
How do Plumbers Apply for a Business License in Auburn?
Plumbers in Auburn must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the application form for details on the process.
Licensing Period – All Auburn Plumber Licenses expire on December 31 of each year and must be renewed before the expiration date
Step 1 – Purchase a Surety Bond
Plumbers operating in Auburn, Alabama must purchase and maintain a $5,000 surety bond
Step 2 – Complete the Application
All Auburn Plumber License applications should be mailed or delivered to the following address:
City of Auburn, AL
144 Tichenor Avenue, Suite 6
Auburn, AL 36830
Plumbers must complete the application in its entirety, and submit the following items:
- Zoning Certificate or Home Occupation Permit issued by the city’s Planning Department
- Evidence of completion of the fire/life/safety inspection or a Certificate of Occupancy issued by the city’s Codes Department
- $155 application fee ($105 if the plumber is strictly a sub-contractor
Contractors that are licensed by an Alabama State Licensure Board must submit proof of licensure with their application.
How Do Auburn Plumbers Renew Their Business License?
Plumbers can renew their business licenses online here. All Auburn Plumber Licenses expire on December 31 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Plumbers in Auburn?
Auburn does not require plumbers to purchase any form of liability insurance as a prerequisite to obtaining a business license. Plumbers must purchase and maintain a $5,000 surety bond.
How Do Auburn Plumbers File Their Bond?
Plumbers should mail the completed bond form, including the power of attorney, to the following address:
City of Auburn, AL
144 Tichenor Avenue, Suite 6
Auburn, AL 36830
The bond requires signatures from both the surety company that issues the bond and from the plumber. The surety company should include the following information on the bond form:
- Legal name entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Date the bond is signed
What Can Auburn Plumbers Do to Avoid Claims Against Their Bonds?
To avoid claims on their bonds, plumbers in Auburn must follow all city licensing regulations, including some of the most important issues below that tend to cause claims:
- Do not engage in any acts of fraud
- Pay all required taxes and fees
- Safely maintain all created ditches and excavations for a period of 1 year
- Replace all excavated materials
What Other Insurance Products Can Agents Offer Plumbers in Auburn?
Auburn does not require plumbers to purchase any form of liability insurance as a prerequisite to obtaining a business license. However, most reputable plumbers will 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 Auburn Plumber Customers?
Auburn unfortunately does not provide a public database to search for active plumbers in the city. We suggest contacting the city directly to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.