Gillette Contractor License Bond: A Comprehensive Guide

April 4, 2022

Gillette Contractor License Bond

This guide provides information for insurance agents to help their customers obtain a Gillette Contractor License Bond

At a Glance:

  • Average Cost: $100 per year
  • Bond Amount: $5,000
  • Who Needs it: All contractors operating in Gillette, Wyoming
  • Purpose: To ensure the public will receive compensation for any damages should the contractor violate licensing law
  • Who Regulates Contractors in Gillette: The Gillette Building Inspection Division

Background

Gillette Municipal Code 5-III-1 requires all contractors operating in the city to obtain a business license. The Gillette city council enacted the licensing requirement to ensure that contractors engage in ethical business practices. To provide financial security for the enforcement of the licensing law, contractors must purchase and maintain a $5,000 surety bond to be eligible for licensure.

What is the Purpose of the Gillette Contractor License Bond?

Gillette requires 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 Gillette Municipal Code Chapter 5. Specifically, the bond protects the public in the event the contractor engages in any acts of fraud or breaches any contracts made with consumers. In short, the bond is a type of insurance that protects the public if the contractor breaks licensing law.

Gillette Contractor License Bond Form

Gillette Contractor License Bond Form

How Can an Insurance Agent Obtain a Gillette Contractor License Surety Bond?

BondExchange makes obtaining a Gillette Contractor License bond easy. Simply login 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 (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.

Not an agent? Then let us pair you with one!

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Is a Credit Check Required for the Gillette Contractor License Bond?

No, a credit check is not required for the Gillette Contractor License bond. Because the bond is considered relatively low risk, the same low rate is offered to all contractors operating in the city, regardless of their credit history.

How Much Does the Gillette Contractor License Bond Cost?

The Gillette Contractor License bond costs just $100 per year.

Who is Required to Purchase a Bond?

Gillette requires contractors to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Gillette statute 5-III-1, a contractor is a person that provides construction services as an independent business.

Homeowners performing work on their own residences are exempt from the license and bonding requirements. However, homeowners may only construct one residence, or accessory to an existing residence, every 5 years to remain exempt.

How do Contractors Apply for a License in Gillette?

Contractors in Gillette must navigate several steps to secure a business license. Below are the general guidelines, but applicants should refer to the application form for details on the process.

License Period – All Gillette Contractor Licenses are valid for one year and must be renewed before the expiration date

Step 1 – Determine the License Classification

Gillette requires contractors to obtain specific licenses corresponding to the type of services the contractor provides. Below are the different classifications for the Gillette Contractor License:

    • Class A: General
    • Class B: Building
    • Class R: Residential
    • Class C: Specialty
    • Class D:
      • Electrical
      • Plumbing
      • HVAC
      • Mechanical
      • Gas Pipefitters
    • Class F: Fire Suppression

Step 2 – Meet the Initial Requirements

Gillette requires contractors to meet certain prerequisites before applying for licensure, as referenced below:

    • Electrical:
    • Gas Pipefitter: Employ a licensed master gas pipefitter
    • HVAC: Employ a licensed master HVAC technician
    • Plumbing: Employ a master plumber
    • Fire Suppression: Employ a master of record that;
      • Holds a current electrical license
      • Has been tested by WAM and holds a Fire Suppression Certificate through WTCP or Fire Suppression Installer/Worker Certificate sponsored by the ICC and administered by Pearson VUE, or
      • Has been tested and certified through the National Institute for the Certification of Engineering Technologies for the equipment that will be installed, or
      • Has been certified by the manufacturer of the equipment that will be installed
    • General, Building, and Residential: Must employ a master of record responsible for the work performed under the license
    • Specialty: Must employ a master of record responsible for the work performed under the license

Gillette requires the master of record for most license classifications to pass an exam administered through the International Code Council (ICC). Contractors should examine the application form to determine if their master of record must pass an exam.

Step 3 – Purchase a Surety Bond

Contractors must purchase and maintain a $5,000 surety bond

Step 4 – Purchase Insurance

Contractors with employees must purchase and maintain both workers’ compensation and unemployment insurance. Additionally, contractors must purchase liability insurance with minimum limits corresponding to their license’s classification, as referenced below:

    • Class A:
      • $1 million per occurrence
      • $2 million aggregate
    • Class B and R:
      • $500,000 per occurrence
      • $1 million aggregate
    • Class C, D, and F
      • $300,000 per occurrence
      • $600,000 aggregate

Step 5 – Complete the Application

All Gillette Contractor License applications (individual trade applications can be found here) should be mailed or delivered to the following address:

City of Gillette
Building Division
201 E. Fifth Street, 2nd Floor
Gillette, WY 82716

Contractors must complete the application in its entirety, and submit the following items:

    • Certificate of Good Standing
    • Letter from a financial institution or CPA certifying that the contractor is in good financial standing
    • ICC certificate (if applicable)

Additionally, contractors must pay an application fee in accordance with their license classification.

    • Class A: $500
    • Class B: $300
    • Class R: $150
    • Class D: $150
    • Class F: $75
    • Class C: $75

How do Gillette Contractors Renew Their Business Licenses?

Contractors should mail or deliver their completed renewal applications to the following address:

City of Gillette
Building Division
201 E. Fifth Street, 2nd Floor
Gillette, WY 82716

All Gillette Contractor Licenses are valid for one year and must be renewed before the expiration date.

What are the Insurance Requirements for Contractors in Gillette?

Gillette requires contractors with employees to purchase workers’ compensation and unemployment insurance. All contractors must purchase liability insurance with the following minimum limits:

  • Class A:
    • $1 million per occurrence
    • $2 million aggregate
  • Class B and R:
    • $500,000 per occurrence
    • $1 million aggregate
  • Class C, D, and F:
    • $300,000 per occurrence
    • $600,000 aggregate

Contractors must purchase and maintain a $5,000 surety bond.

How Do Gillette Contractors File Their Bonds?

Contractors should mail or deliver their completed bond forms, including the power of attorney, to the following address:

City of Gillette
Building Division
201 E. Fifth Street, 2nd Floor
Gillette, WY 82716

The surety 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 license classification of the entity/individual(s) buying the bond
  • Surety company’s name and state of incorporation
  • Bond amount
  • Entity requiring the bond
  • Date the bond goes into effect
  • Date the bond is signed

What Can Gillette Contractors do to Avoid Claims Against Their Bonds?

To avoid claims against their bonds, contractors in Gillette must adhere to all licensing 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
  • Do not breach any contracts made with consumers

What Other Insurance Products Can Agents Offer Contractors in Gillette?

Gillette requires contractors to purchase workers’ compensation, unemployment, and liability insurance as a prerequisite to obtaining a business license. Bonds are our only business at BondExchange, so we do not issue any other types of 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 Gillette Contractor Customers?

Gillette conveniently provides a public database of active contractors in the city. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

2022-06-10T12:09:08-04:00