Dothan Electrical Contractor Bond: A Comprehensive Guide
April 25, 2022
This guide provides information for insurance agents to help their customers obtain a Dothan Electrical Contractor Bond
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $5,000
- Who Needs it: All electrical contractors operating in Dothan, Alabama
- Purpose: To ensure the public will receive compensation for any damages should the contractor violate licensing law
- Who Requires the Bond: The City of Dothan
Dothan Municipal Code Sec. 14-56 requires all electrical contractors operating in the city to obtain a business license. The Dothan city council enacted the licensing laws and regulations to ensure that electrical contractors engage in ethical business practices. To provide financial security for the enforcement of the licensing law, electrical contractors must purchase and maintain a $5,000 surety bond to be eligible for licensure.
What is the Purpose of the Dothan Electrical Contractor Bond?
Dothan requires electrical 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 Sec. 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 throughout 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 Electrical Contractor Surety Bond?
BondExchange makes obtaining a Dothan 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? 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 Electrical Contractor Bond?
No, a credit check is not required for the Dothan Electrical Contractor bond. Because the bond is considered relatively low risk, the same low rate is offered to all electrical contractors in Dothan, regardless of their credit history.
How Much Does the Dothan Electrical Contractor Bond Cost?
The Dothan Electrical Contractor bond costs just $100 per year.
Who is Required to Purchase the Bond?
Dothan requires electrical contractors to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Dothan Municipal Code Sec. 14-41, an electrical contractor is a person that provides electrical construction work as an independent business.
How do Electrical Contractors Apply for a License in Dothan?
Electrical contractors in Dothan must navigate several steps to secure their license. Below are the general guidelines, but applicants should refer to the city website’s licensing page, as well as the licensing statutes.
License Period – All Dothan Electrical Contractor Licenses expire annually and must be renewed before the expiration date
Step 1 – 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 2 – Purchase a Surety Bond
Electrical Contractors must purchase and maintain a $5,000 surety bond
Step 3 – Complete the Application
Electrical contractors are eligible to apply for a Dothan business license after purchasing a surety bond and obtaining a state license. 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 Electrical Contractors Renew Their Local and State Licenses?
Electrical contractors can renew their local business license online or in person at the Customer Service Center, which is located on the first floor of the Dothan Civic Center. Additionally, electrical contractors can renew their state license, issued through the Electrical Contractors Board, online here. All local and state electrical contractor licenses expire annually and must be renewed before the expiration date.
Do Dothan Electrical Contractors Need to Obtain a Permit?
Yes, electrical contractors must obtain a permit before beginning work on a project. To obtain an electrical permit, contractors must submit an application online here. Contractors do not need their electrical permits. However, they must obtain a permit for each project they undertake.
What are the Insurance Requirements for Electrical Contractors in Dothan?
Dothan does not require electrical contractors to purchase any form of liability insurance as a prerequisite to obtaining a business license. Electrical Contractors must purchase and maintain a $5,000 surety bond.
How Do Dothan Electrical Contractors File Their Bonds?
Electrical contractors should mail their completed bonds form, 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
- Date the bond is signed
What Can Dothan Electrical Contractors Do to Avoid Claims Against Their Bonds?
To avoid claims on their bonds, electrical 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
- Replace all excavated soil
What Other Insurance Products Can Agents Offer Electrical Contractors in Dothan?
Dothan does not require electrical contractors to purchase liability insurance as a prerequisite to obtaining a business license. However, most reputable contractors 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 Dothan Electrical Contractor Customers?
Dothan unfortunately does not provide a public database to search for active electrical 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.