Dothan Gas System, Piping, or Appliance Installation Bond: A Comprehensive Guide

May 18, 2022

Dothan Gas System, Piping, or Appliance Installation Bond

This guide provides information for insurance agents to help their customers obtain a Dothan Gas System, Piping, or Appliance Installation bond.

At a Glance:

  • Average Cost: $100 per year
  • Bond Amount: $5,000
  • Who Needs it: All gasfitting 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

Background

Dothan Municipal Code Sec. 14-41. requires all gasfitting contractors operating in the city to obtain a business license. The Dothan city council enacted the licensing laws and regulations to ensure that contractors engage in ethical business practices. To provide financial security for the enforcement of the licensing law, gasfitting contractors must purchase and maintain a $5,000 surety bond to be eligible for licensure.

What is the Purpose of the Dothan Gas System, Piping, or Appliance Installation Bond?

Dothan requires gasfitting 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 gasfitter 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.

Dothan Gas System, Piping, or Appliance Installation Bond Form

Dothan Gas System, Piping, or Appliance Installation Bond Form

How Can an Insurance Agent Obtain a Dothan Gas System, Piping, or Appliance Installation Surety Bond?

BondExchange makes obtaining a Dothan Gas System, Piping, or Appliance Installation 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 Gas System, Piping, or Appliance Installation Bond?

No, a credit check is not required for the Dothan Gas System, Piping, or Appliance Installation Bond. Because the bond is considered relatively low risk, the same low rate is offered to all gas fitting contractors in Dothan, regardless of their credit history.

How Much Does the Dothan Gas System, Piping, or Appliance Installation Bond Cost?

The Dothan Gas System, Piping, or Appliance Installation Bond costs just $100 per year.

Who is Required to Purchase the Bond?

Dothan requires gasfitting contractors to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Alabama Statute 34-37-1, a gasfitting contractor is a person that, as an independent business, installs and maintains systems used to supply natural gas.

How Do Gasfitting Contractors Apply for a License in Dothan?

Gasfitting contractors in Dothan must navigate several steps to secure a license. Below are the general guidelines, but applicants should refer to the city’s licensing page as well as the licensing statutes for details on the process.

Step 1 – Obtain a State Certification

All gasfitting contractors operating in Alabama must obtain a statewide certification from the Plumbers and Gas Fitters Board. To apply for certification, contractors must mail a completed certification form to the following address:

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

Once the certification has been approved, contractors will need to pass an exam and pay the required fees.

Dothan requires either a certified master or journeyman gasfitter to be present whenever gasfitting work is being done.

Step 2 – Purchase a Surety Bond

Gasfitting contractors must purchase and maintain a $5,000 surety bond

Step 3 – Complete the Application

Gasfitting contractors are eligible to apply for a Dothan Business License after purchasing a surety bond and obtaining state certification. 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 Gas System, Piping, or Appliance Installers Renew Their Local License and State Certification?

Gasfitting 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 certification, issued through the Plumbers and Gas Fitters Board, online here. All local licenses and state gas certifications expire annually and must be renewed before the expiration date.

Do Dothan Gasfitting Contractors Need to Obtain a Permit?

Yes, gasfitting contractors must obtain a permit before beginning work on a project. To obtain a gas permit, gasfitters must submit an application online here. Gasfitting contractors do not need to renew their gas permits, as they are valid for the duration of the project. However, contractors must obtain a new permit for each project they undertake.

What are the Insurance Requirements for Gasfitting Contractors in Dothan?

Dothan does not require gasfitting contractors to purchase any form of liability insurance as a prerequisite to obtaining a business license. Gasfitting contractors must purchase and maintain a $5,000 surety bond.

How Do Dothan Gas System, Piping, or Appliance Installers File Their Bonds?

Gasfitting 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 Gasfitting Contractors Do to Avoid Claims Against Their Bonds?

To avoid claims on their bonds, gasfitting contractors in Dothan must follow all license regulations in the city, including some of the most critical issues below that tend to cause claim

  • 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 Gas Installers in Dothan?

Dothan does not require gasfitting 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 Alabama Gasfitting Contractor Customers?

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

2022-06-02T14:12:49-04:00