Birmingham Electrical Contractor Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Birmingham Electrical Contractor Bond
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: $10,000
- Who Needs it: All electrical contractors operating in Birmingham, Alabama
- Purpose: To ensure the public will receive compensation for any damages should the electrical contractor fail to comply with Birmingham Technical Code 111.9
- Who Regulates Electrical Contractors in Birmingham: The Birmingham Department of Planning, Engineering, and Permits
Background
Birmingham Technical Code 103.1.1 requires all electrical contractors operating in the city to obtain a permit before installing, altering, or repairing electrical systems. The Birmingham city council enacted the permitting laws and regulations to ensure that electrical contractors engage in ethical business practices. To provide financial security for the enforcement of the permitting law, electrical contractors must purchase and maintain a $10,000 surety bond before applying for an electrical permit.
What is the Purpose of the Birmingham Electrical Contractor Bond?
Birmingham requires electrical contractors in to purchase a surety bond as part of the application process to obtain an electrical permit. The bond ensures that the public will receive compensation for financial harm if the contractor fails to comply with the regulations set forth in Birmingham Technical Code 111.9. Specifically, the bond protects the public in the event the contractor fails to perform work they have been compensated for or does not return public utilities (streets, highways, etc.) to their original conditions. In short, the bond is a type of insurance that protects the public if the contractor violates the terms of their permit.
How Can an Insurance Agent Obtain a Birmingham Electrical Contractor Surety Bond?
BondExchange makes obtaining a Birmingham Electrical Contractor bond easy. Simply log in to your account and use our keyword search to find the “contractor” bond in our database. Don’t have a login? Gain access 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.
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Is a Credit Check Required for the Birmingham Electrical Contractor Bond?
No, a credit check is not required for the Birmingham Electrical Contractor bond. Because the bond is considered relatively low risk, the same low rate is offered to all electrical contractors operating in Birmingham regardless of their credit history.
How Much Does the Birmingham Electrical Contractor Bond Cost?
The Birmingham Electrical Contractor bond costs just $100 a year or $10 per month.
Who is Required to Purchase the Bond?
To paraphrase Birmingham Technical Code 111.3.1, an electrical contractor is a person that performs electrical construction work as an independent business.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How do Electrical Contractors Apply for a Permit in Birmingham?
Electrical contractors in Birmingham must navigate several steps to secure an electrical permit. Below are the general guidelines, but applicants should refer to the Birmingham Technical Code for details on the process.
Step 1 – Purchase a Surety Bond
Electrical contractors operating in Birmingham, Alabama must purchase and maintain a $10,000 surety bond
Step 2 – Obtain a State License
All electrical contractors operating in the state of Alabama must obtain a license from the Electrical Contractors Board. To apply for a license, contractors must mail a completed application to the following address:
State of Alabama
The Alabama Board of Electrical Contractors
2777 Zelda Road
Montgomery, AL 36106
Once the contractor’s application has been approved, they will need to pass an exam and pay a $165 fee.
Step 3 – Apply for an Electrician Registration
Electrical contractors must be registered in Birmingham prior to conducting business in the city. There are multiple registration classifications, as outlined below:
-
- Apprentice
- Journeyman (must have completed a minimum of 6,000 hours of apprentice training)
- Master (must have been a journeyman for a minimum of 2 years)
All Birmingham Electrician Registrations should be mailed or delivered to the following address:
City of Birmingham
Department of Planning, Engineering, and Permits
710-20th Street, North
Room 207, City Hall
Birmingham, Alabama 35203
Electrical contractors must employ at least one registered journeyman or master electrician who is present at all projects when electrical work is being performed.
Step 4 – Apply for a Business License
All businesses, electrical contractors included, conducting operating within the Birmingham city limits must obtain a local business license. To apply for a license, electrical contractors should visit the Tax and License Administration Division between the hours of 8:00 a.m. to 4:45 p.m. at the following address:
First Floor, City Hall
Room TL-100
710 North 20th Street
Birmingham, AL 35203
Step 5 – Complete the Permit Application
Electrical contractors must obtain a permit for each project they undertake. To apply for an electrical permit, contractors should mail or deliver their completed application, including all applicable fees, to the following address:
City of Birmingham
Department of Planning, Engineering, and Permits
710-20th Street, North
Room 207, City Hall
Birmingham, Alabama 35203
Do Birmingham Electrical Contractors Need to Renew Their Electrical Permits?
No, all Birmingham electrical permits are valid for the duration of the project and do not need to be renewed. However, electrical contractors must apply for a new permit every time they accept a job.
How Do Birmingham Electrical Contractors Renew Their Business Licenses and Registration?
Electrical contractors can renew their state license, issued through the Electrical Contractors Board, online here. Contractors can renew their local business in person by visiting the following address:
First Floor, City Hall
Room TL-100
710 North 20th Street
Birmingham, AL 35203
To renew their electrician registration, contractors should mail or deliver a $50 renewal fee to the following address:
City of Birmingham
Department of Planning, Engineering, and Permits
710-20th Street, North
Room 207, City Hall
Birmingham, Alabama 35203
Contractors must renew their licenses and registration annually.
What are the Insurance Requirements for Electrical Contractors in Birmingham?
Birmingham does not require electrical contractors to purchase liability insurance as a prerequisite to obtaining an electrical permit. Electrical contractors must purchase and maintain a $10,000 surety bond.
How Do Birmingham Electrical Contractors File Their Bond?
Electrical contractors should mail or deliver their completed bond form, including the power of attorney, to the Tax and License Administration Division at the following address:
First Floor, City Hall
Room TL-100
710 North 20th Street
Birmingham, AL 35203
The surety bond requires signatures from both the surety company that issues the bond and from the Electrical Contractor. The surety company should include the following information on the bond form:
- Legal name and of entity/individual(s) buying the bond
- Surety company’s name
- Date the bond is signed
What Can Birmingham Electrical Contractors Do to Avoid Claims Against Their Bonds?
To avoid claims on their bonds, electrical contractors in Birmingham must follow all provisions outlined in Birmingham Technical Code 111.9, including some of the most important issues below that tend to cause claims
- Adequately perform all work that has been paid for
- Return all public utilities (streets, highways, etc.) altered through the course of a project to their original conditions
- Ensure, for a period of 1 year, the safe conditions of all public utilities altered through the course of a project
What Other Insurance Products Can Agents Offer Electrical Contractors in Birmingham?
Most reputable electrical contractors will purchase liability insurance. 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 Birmingham Electrical Contractor Customers?
Birmingham unfortunately does not provide a public database to search for active electrical contractors in the city. We suggest contacting the Tax and License Administration Division to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.