Dothan Tree Cutting Bond: A Comprehensive Guide
June 15, 2022
This guide provides information for insurance agents to help their customers obtain a Dothan Tree Cutting bond
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $1,000
- Who Needs it: All persons that cut trees for profit (tree cutters) 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 18-228 requires all tree cutters operating in the city to obtain a permit before beginning work on a project. The Dothan City Council enacted the permitting requirement to ensure that tree cutters engage in ethical business practices. To provide financial security for the enforcement of the permitting law, tree cutters must purchase and maintain a $1,000 surety bond to be eligible for a permit.
What is the Purpose of the Dothan Tree Cutting Bond?
Dothan requires tree cutters 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 tree cutter fails to comply with the regulations set forth in Dothan Municipal Code 18-226. Specifically, the bond protects the public in the event the tree cutter engages in any acts of fraud or fails to remove all debris after the completion of a project. In short, the bond is a type of insurance that protects the public if the tree cutter violates the terms of their permit.
How Can an Insurance Agent Obtain a Dothan Tree Cutting Surety Bond?
BondExchange makes obtaining a Dothan Tree Cutting 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.
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Is a Credit Check Required for the Dothan Tree Cutting Bond?
No, a credit check is not required for the Dothan Tree Cutting bond. Because the bond is considered relatively low risk, the same low rate is offered to all tree cutters in Dothan, regardless of their credit history.
How Much Does the Dothan Tree Cutting Bond Cost?
The Dothan Tree Cutting bond costs just $100 per year.
Who is Required to Purchase the Bond?
Dothan requires tree cutters to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Dothan Municipal Code 18-228, a tree cutter is a person that, as an independent business, charges a fee to remove trees for consumers.
How Do Tree Cutters Apply for a Permit in Dothan?
Tree cutters in Dothan must navigate several steps to secure a permit. Below are the general guidelines, but applicants should refer to the permitting statutes and/or contact the city at (334) 615-3000 for details on the process.
Permit Period – All Dothan Tree Cutting Permits are valid for 30 days
Step 1 – Purchase a Surety Bond
Tree cutters must purchase and maintain a $1,000 surety bond
Step 2 – Purchase Liability Insurance
Dothan requires tree cutters to purchase liability insurance with a minimum limit of $50,000 and file the policy with the city clerk
Step 3 – Register with the Secretary of State
All Alabama businesses must register with the Secretary of State (SOS)
Step 4 – Apply for a Business License
Tree cutters must obtain a Dothan Business License before applying for a permit. To apply for a license, tree cutters must complete an application and submit it online or mail it to the following address:
City of Dothan
P.O. BOX 2128
Dothan, AL 36302
All Dothan Business Licenses expire annually and must be renewed before the expiration date.
Step 5 – Contact the City
Tree cutters are eligible to apply for a permit after obtaining a business license and purchasing both a surety bond and liability insurance. To apply for a permit, tree cutters should call the city at (334) 615-3000 or visit the city’s Customer Service Center, located in the 1st Floor Lobby of the Dothan Civic Center. Tree cutters must pay a $5 fee when submitting their permit application.
Do Dothan Tree Cutters Need to Renew Their Permits?
No, Dothan tree cutters do not need to renew their permits. However, tree cutters must apply for a new permit for every job they undertake. All Dothan Tree Cutting Permits are valid for 30 days and issued for a single location.
How Do Dothan Tree Cutters Renew Their Business Licenses?
Tree cutters 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. All Dothan business licenses and state tree cutter licenses expire annually and must be renewed before the expiration date.
What are the Insurance Requirements for Tree Cutters in Dothan?
Dothan requires tree cutters to purchase both a $1,000 surety bond as well as liability insurance with a minimum limit of $50,000.
Persons who engage solely in tree stump grinding are exempt from the liability insurance requirement.
How Do Dothan Tree Cutters File Their Bonds?
Tree cutters 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 tree cutter. 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 Tree Cutters Do to Avoid Claims Against Their Bonds?
To avoid claims on their bonds, tree cutters in Dothan must ensure that they remove all debris after completing a job.
What Other Insurance Products Can Agents Offer Tree Cutters in Dothan?
Tree cutters in Dothan are required to 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 for Dothan Tree Cutter Customers?
Dothan unfortunately does not provide a public database of active tree cutters 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.