Guilford County Insulation Contractor Bond: A Comprehensive Guide
July 1, 2022
This guide provides information for insurance agents to help their customers obtain a Guilford County Insulation Contractor bond
*Important Note: North Carolina requires insulation contractors to obtain a statewide general contractor license, under the specialty classification S(Insulation), and contractors that do not meet the working capital requirements for this license are required to purchase a surety bond. This page focuses on the bonding and licensing requirements for insulation contractors in Guilford County. To learn more about the North Carolina General Contractor bond, click here.
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $2,000
- Who Needs it: Insulation contractors operating in unincorporated parts of Guilford County, North Carolina
- Purpose: To ensure the public will receive compensation for financial harm if the contractor violates licensing law
- Who Regulates Insulation Contractors in Guilford County: The Guilford County Inspections Department
Guilford County Code of Ordinances 6-46 requires insulation contractors operating in unincorporated parts of the county to obtain a license with the Inspections Department. The Guilford County Board of Commissioners enacted the licensing requirement to ensure that contractors adequately complete all jobs. To provide financial security for the enforcement of the licensing requirement, insulation contractors must purchase and maintain a $2,000 surety bond to be eligible for licensure.
“Unincorporated” means any part of the county that is outside the jurisdiction of any municipality, or to put it simply, does not have a local government at the town level.
What is the Purpose of the Guilford County Insulation Contractor Bond?
Guilford County requires insulation contractors operating in unincorporated parts of the county 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 abide by the regulations outlined in Guilford County Code of Ordinances 9-2-135. Specifically, the bond protects the public if the contractor engages in any acts of fraud or damages customers’ property as a result of shoddy installation work. In short, the bond is a type of insurance that protects the public if the contractor violates licensing law.
How Can an Insurance Agent Obtain a Guilford County Insulation Contractor Surety Bond?
BondExchange makes obtaining a Guilford County Insulation Contractor bond easy. Simply log in to your account and use our keyword search to find the “Guilford County” 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 Guilford County Insulation Contractor Bond?
No, a credit check is not required for the Guilford County Insulation Contractor bond. Because the bond is considered relatively low risk, the same low rate is offered to all insulation contractors in the county, regardless of their credit history.
How Much Does the Guilford County Insulation Contractor Bond Cost?
The Guilford County Insulation Contractor bond costs just $100 per year.
Who is Required to Purchase the Bond?
Guilford County requires insulation contractors operating in unincorporated parts of the county to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase 21 NCAC 12A .0202, an insulation contractor is a person that, as an independent business, installs, alters, or repairs insulation media used for the non-mechanical control of temperatures for the construction of buildings. This definition does not apply to the insulation of mechanical equipment as well as ancillary lines and piping.
How do Insulation Contractors Apply For a License in Guilford County?
Insulation contractors in Guilford County must navigate several steps to obtain a license. Below are the general guidelines, but contractors should refer to the licensing statutes for details on the process.
License Period – All Guilford County Insulation Contractor Licenses expire on December 31 of each year and must be renewed before the expiration date
Step 1 – Obtain a State License
North Carolina requires insulation contractors to obtain a statewide license from the North Carolina Licensing Board For General Contractors. To obtain a state license, contractors must:
- Determine the license classification:
- Building (required for insulation contractors)
- Public Utilities
- Determine the license type:
- Limited: Can accept jobs costing a maximum of $500,000
- Intermediate: Can accept jobs costing a maximum of $1 million
- Unlimited: Can accept all jobs regardless of cost
- Purchase a surety bond (only if the contractor does not meet the working capital requirements)
- Appoint a qualifying individual to pass the pre-licensure exam
- Submit a completed application online here
- Determine the license classification:
For more information on how to obtain a North Carolina General Contractor License, check out our NC General Contractor bond page.
Step 2 – Contact the Inspections Department
To obtain a license, insulation contractors must contact the County Inspections Department. The department will walk the contractor through the application process, provide them with any forms that must be submitted, and answer any questions they may have.
Step 3 – Purchase a Surety Bond
Insulation contractors must purchase and maintain a $2,000 surety bond before operating in unincorporated parts of Guilford County.
How do Guilford County Insulation Contractors Renew Their Licenses?
Before the expiration date, the county will send the contractor a renewal notice with instructions on how to renew their license. All Guilford County Insulation Contractor Licenses expire on December 31 of each year and must be renewed before the expiration date.
Do Guilford County Insulation Contractors Need to Obtain a Permit?
Yes, Guilford County Code of Ordinances 6-28 dictates that insulation contractors operating in unincorporated parts of the county must obtain a permit for each job they undertake. To obtain a permit, contractors should contact the Inspections Department.
What are the Insurance Requirements for Insulation Contractors in Guilford County?
Guilford County does not require insulation contractors to purchase any form of liability insurance. However, insulation contractors that utilize subcontractors or have employees may need to purchase workers’ compensation insurance. Insulation contractors must purchase and maintain a $2,000 surety bond.
How Do Guilford County Insulation Contractors File Their Bonds?
Insulation contractors in Guilford County should submit their completed bond forms, including the power of attorney, to the Inspections Department at the following address:
301 West Market Street
Greensboro, NC 27401
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
- Entity requiring the bond
- Bond amount
- Date the bond goes into effect
- Date the bond is signed
What Can Guilford County Insulation Contractors Do to Avoid Claims Against Their Bonds?
To avoid claims on their bonds, insulation contractors in Guilford County must ensure that they follow all license regulations in the county, including some of the most important issues below that tend to cause claims:
- Do not engage in any acts of fraud
- Honor all contracts made by properly providing and installing all insulation and energy utilization equipment.
What Other Insurance Products Can Agents Offer Insulation Contractors in Guilford County?
Insulation contractors may be required to purchase workers’ compensation insurance. Additionally, most reputable contractors will purchase liability insurance. 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 Guilford County Insulation Contractor Customers?
Guilford County provides a public database of active permits. We also suggest contacting the Inspections Department for a list of licensed insulation contractors. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.