Dothan Commercial Refrigeration Contractor Bond: A Comprehensive Guide
April 18, 2022
This guide provides information for insurance agents to help their customers obtain a Dothan Commercial Refrigeration Contractor Bond
*Important Note: HVAC (mechanical) contractors operating in Alabama must purchase a $15,000 surety bond before obtaining a state license. This page focuses exclusively on the $5,000 bond required to operate in Dothan. These are two separate requirements and commercial refrigeration contractors must purchase both bonds before conducting business in Dothan. To learn about the $15,000 bond requirement, click here.
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $5,000
- Who Needs it: All commercial refrigeration contractors operating in Dothan, Alabama
- Purpose: To ensure the public will receive compensation for any damages should the contractor violate licensing law
- Who is Requiring the Bond: The City of Dothan
Dothan Municipal Code Sec. 14-41 requires all commercial refrigeration contractors operating in the city to obtain a business license. The Dothan city council enacted the licensing laws and regulations to ensure that commercial refrigeration contractors engage in ethical business practices. To provide financial security for the enforcement of the licensing law, commercial refrigeration contractors must purchase and maintain a $5,000 surety bond to be eligible for licensure.
What is the Purpose of the Dothan Commercial Refrigeration Contractor Surety Bond?
Dothan requires commercial refrigeration contractors 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 contractor fails to comply with the regulations set forth in Dothan Municipal Code 14-41. Specifically, the bond protects the public in the event the contractor engages in any acts of fraud or fails to return land altered during the course of a project to a safe condition. In short, the bond is a type of insurance that protects the public if the contractor breaks licensing laws.
How Can an Insurance Agent Obtain a Dothan Commercial Refrigeration Contractor Surety Bond?
BondExchange makes obtaining a Dothan Commercial Refrigeration 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? 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.
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Is a Credit Check Required for the Dothan Commercial Refrigeration Contractor Bond?
No, a credit check is not required for the Dothan Commercial Refrigeration Contractor bond. Because the bond is considered relatively low risk, the same low rate is offered to all commercial refrigeration contractors in Dothan, regardless of their credit history.
How Much Does the Dothan Commercial Refrigeration Contractor Bond Cost?
The Dothan Commercial Refrigeration Contractor Bond costs just $100 per year.
Who is Required to Purchase the Bond?
Dothan requires commercial refrigeration contractors to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Dothan Municipal Code 14-41, a commercial refrigeration contractor is a person that is licensed as a mechanical contractor and installs, repairs or maintains commercial cooling systems.
How do Commercial Refrigeration Contractors Apply for a License in Dothan?
Commercial refrigeration contractors in Dothan must obtain a city mechanical contractor license and must navigate several steps to do so. Below are the general guidelines, but applicants should refer to the city website’s licensing page, as well as the licensing statutes, for details on the process.
License Period – All Dothan Business Licenses expire annually and must be renewed before the expiration date
Step 1 – Obtain a State Certification
Commercial refrigeration contractors must obtain a state-wide certification from the Alabama Board of Heating, Air Conditioning, and Refrigeration (HVAC) Contractors. To obtain a certification, contractors must complete an application online here. Contractors must pay a $150 fee when submitting their applications.
After submitting their application, contractors must pass the required exam.
Step 2 – Purchase a Surety Bond
Commercial refrigeration contractors must purchase and maintain a $5,000 surety bond. Contractors must also purchase a $15,000 surety bond to obtain the required state registration
Step 3 – Complete the Application
Commercial refrigeration contractors are eligible to apply for a business license after purchasing a surety bond and obtaining a state registration. All Dothan Business License applications should be completed online or mailed to the following address:
City of Dothan
P.O. BOX 2128
Dothan, AL 36302
How Do Dothan Commercial Refrigeration Contractors Renew Their Business Licenses and State Registrations?
Contractors can renew their business licenses online here (see here for renewal instructions). Additionally, contractors can renew their state certifications online here. Both the Dothan Business License and Alabama HVAC Contractor Certification expires on December 31 of each year and must be renewed before the expiration date.
Do Dothan Commercial Refrigeration Contractors Need to Purchase Insurance?
Commercial refrigeration contractors are not required to purchase any form of liability insurance as a prerequisite to obtaining either a Dothan Business License or state registration. Commercial refrigeration contractors must purchase and maintain a $5,000 surety bond. Contractors must also purchase a $15,000 surety bond to obtain the required state registration.
How Do Dothan Commercial Refrigeration Contractors File Their Bonds?
Commercial refrigeration contractor should mail their completed bond forms, including the power of attorney, to the following address:
City of Dothan
P.O. BOX 2128
Dothan, AL 36302
The bond requires signatures from both the surety company that issues the bond and from the contractor. The surety company should include the following information on the bond form:
- Legal name and address of entity/individual(s) buying the bond
- Surety company’s name Bond amount
- Date the bond is signed
What Can Dothan Commercial Refrigeration Contractors Do to Avoid Claims Against Their Bond?
To avoid claims on their bonds, commercial refrigeration contractors in Dothan must follow all license regulations in the city, including some of the most important issues below that, tend to cause claims
- Do not engage in any acts of fraud
- Return land altered throughout the course of a project to a safe condition
- Ensure the safe conditions of all altered land for a period of 1 year after the completion of a project
What Other Insurance Products Can Agents Offer Commercial Refrigeration Contractors in Dothan?
Commercial refrigeration contractors are not required to purchase any form of liability insurance. However, most reputable contractors will purchase 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 Dothan Commercial Refrigeration Contractor Customers?
Dothan unfortunately does not provide a public database to search for active commercial refrigeration contractors 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.