Dothan Fire Sprinkler Installer Bond: A Comprehensive Guide

June 13, 2022

Dothan Fire Sprinkler Installer Bond

This guide provides information for insurance agents to help their customers obtain a Dothan Fire Sprinkler Installer bond

*Important Note: This page focuses exclusively on the bonding requirements for fire sprinkler installation contractors in Dothan, Alabama. Contractors that also act as plumbing contractors must purchase a separate $5,000 bond in addition to their Fire Sprinkler Installer bond. To learn more about the Dothan Plumbing bond, contact BondExchange

At a Glance:

  • Average Cost: $100 per year
  • Bond Amount: $5,000
  • Who Needs it: All fire sprinkler installers operating in Dothan, Alabama
  • Purpose: To ensure the public will receive compensation for any damages should the contractor violate permitting law
  • Who Requires the Bond: The City of Dothan

Background

Dothan Municipal Code 38-7 requires all fire sprinkler installation contractors operating in the city to obtain a permit before beginning work on a job. The Dothan City Council enacted the permitting laws and regulations to ensure that fire sprinkler installations are conducted by qualified contractors in accordance with the city’s fire prevention code. To provide financial security for the enforcement of the permitting law, contractors must purchase and maintain a $5,000 surety bond to be eligible for a permit.

What is the Purpose of the Dothan Fire Sprinkler Installer Bond?

Dothan requires fire sprinkler installation contractors to purchase a surety bond as part of the application process to obtain a 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 Dothan Municipal Code Chapter 38. 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 violates the terms of their permit.

Dothan Fire Sprinkler Installer Bond Form

Dothan Fire Sprinkler Installer Bond Form

How Can an Insurance Agent Obtain a Dothan Fire Sprinkler Installer Surety Bond?

BondExchange makes obtaining a Dothan Fire Sprinkler Installer bond easy. Simply log in to your account and use our keyword search to find the “Dothan” 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 Fire Sprinkler Installer Bond?

No, a credit check is not required for the Dothan Fire Sprinkler Installer bond. Because the bond is considered relatively low risk, the same low rate is offered to all fire sprinkler installation contractors in Dothan, regardless of their credit history.

How Much Does the Dothan Fire Sprinkler Installer Bond Cost?

The Dothan Fire Sprinkler Installer bond costs just $100 per year.

Who is Required to Purchase the Bond?

Dothan requires fire sprinkler installation contractors to purchase a surety bond as a prerequisite to obtaining a permit. To paraphrase Alabama Statute 34-33-1, a fire sprinkler installation contractor is a person that, as an independent business, installs, repairs, or maintains fire protection sprinkler systems.

Exemptions to this definition include:

  • Local building officials
  • Fire inspectors
  • Insurance inspectors

How Do Fire Sprinkler Installation Contractors Apply for a Permit in Dothan?

Fire sprinkler installation contractors in Dothan must navigate several steps to secure a permit. Below are the general guidelines, but applicants should refer to the city’s permitting page for details on the process.

Step 1 – Obtain a State Certification

Fire sprinkler installation contractors must obtain a certification from the Alabama State Fire Marshall’s Office. To obtain a certification, contractors must first pass a competency test conducted by the National Institute for Certification in Engineering Technology (NICET) as a Fire Protection Layout Technician – Level III.

After passing the test, contractors should submit a certification application online here. Contractors must pay a $204 fee when submitting their applications.

Step 2 – Obtain a State Registration  (if applicable)

Fire sprinkler installation contractors that are also plumbing contractors must obtain a state registration from the Plumbers and Gas Fitters Board. To apply for registration, contractors must mail a completed application form, including a $25 fee, to the following address:

State of Alabama
Alabama Plumbers And Gas Fitters Examining Board
216 Aquarius Dr., Suite 319
Homewood, Al 35209

Contractors must employ at least one licensed master plumber. To obtain master certification, contractors should their completed application, including fees totaling $225, to the above address as well as pass the required exam.

Step 3 – Purchase a Surety Bond

Fire sprinkler installation contractors must purchase and maintain a $5,000 surety bond. Contractors that also act as plumbers must purchase an additional $5,000 bond.

Step 4 – Purchase Insurance

All fire sprinkler installation contractors must purchase liability insurance with a minimum limit of $1 million as well as errors and omissions and/or professional liability coverage.

Step 5 – Obtain a Dothan Business License

All businesses operating on Dothan must obtain a local business license. To apply for a license, contractors should complete an online application or mail a hard copy to the following address:

City of Dothan
P.O. BOX 2128
Dothan, AL 36302

Step 6 – Apply for a Permit

Fire installation contractors must obtain a permit before beginning work on a job. To apply for a Fire Protection System Permit, contactors must deliver a completed application to the city’s planning department in the 1st Floor Lobby of the Dothan Civic Center.

Do Dothan Fire Sprinkler Installation Contractors Need to Renew Their Permits?

No, fire sprinkler installation contractors in Dothan do not need to renew their permits as they will typically be valid for the duration of the job. However, contractors must apply for a separate permit for each project they undertake (contractors do not need to purchase a new bond for each permit).

How do Dothan Fire Sprinkler Installation Contractors Renew Their Licenses, Certifications, and Registrations?

Fire sprinkler installation 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, contractors can renew their state registrations, issued through the Plumbers and Gas Fitters Board, online here. All local licenses and state plumbing certifications expire annually and must be renewed before the expiration date.

To renew their certifications issued by the State Fire Marshall’s Office, fire sprinkler installation contractors must complete a renewal application online here. All state certifications expire on September 30 of each year.

What are the Insurance Requirements for Fire Sprinkler Installation Contractors in Dothan?

Dothan requires fire sprinkler installation contractors to purchase liability insurance with a minimum limit of $1 million as well as errors and omissions and/or professional liability coverage. Fire sprinkler installation contractors must purchase and maintain a $5,000 surety bond. Contractors that also act as plumbers must purchase an additional $5,000 bond.

How Do Dothan Fire Sprinkler Installation Contractors File Their Bonds?

Fire sprinkler installation contractors should submit 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 Fire Sprinkler Installation Contractors Do to Avoid Claims Against Their Bonds?

To avoid claims on their bonds, fire sprinkler installation contractors in Dothan must follow all permit regulations in the city, including some of the most critical 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 any excavated soil

What Other Insurance Products Can Agents Offer Fire Sprinkler Installation Contractors in Dothan?

Dothan requires fire sprinkler installation contractors to purchase liability insurance as well as E&O and/or professional liability coverage. 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 Fire Sprinkler Installation Contractor Customers?

Alabama conveniently provides a public database to search for active fire sprinkler installation contractors in the state. We also suggest contacting Dothan directly for a list of active fire sprinkler installation contractors within the city. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

2022-11-04T17:38:51-04:00