Hickory Sidewalk Contractor Bond: A Comprehensive Guide
May 19, 2022
This guide provides information for insurance agents to help their customers obtain a Hickory Sidewalk Contractor bond
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $1,000
- Who Needs it: Contractors applying for a permit to excavate a city-owned sidewalk in Hickory, North Carolina
- Purpose: To ensure the public will receive compensation for financial harm if the contractor violates the terms of their license or permit
- Who Requires the Bond: The City of Hickory
Hickory Code of Ordinances 28-81 requires contractors seeking to excavate a city-owned sidewalk to obtain a permit. Hickory enacted the permit requirement to ensure that contractors do not permanently damage sidewalks during the excavation process. To provide financial security for the enforcement of the permit requirement, sidewalk contractors must purchase a $1,000 surety bond to be eligible for a permit.
What is the Purpose of the Hickory Sidewalk Contractor Bond?
Hickory requires contractors to purchase a surety bond as part of the application process to obtain a permit authorizing the excavation of a city-owned sidewalk. The bond ensures that the city will receive compensation for financial harm if the contractor fails to abide by the regulations outlined in Hickory Code of Ordinances 29-82. Specifically, the bond protects the city if the contractor fails to fails to restore all street and sidewalk surfaces. In short, the bond is a type of insurance that protects the city if the contractor violates the terms of their permit.
How Can an Insurance Agent Obtain a Hickory Sidewalk Contractor Surety Bond?
BondExchange makes obtaining a Hickory Sidewalk Contractor bond easy. Simply log in to your account and use our keyword search to find the “sidewalk” 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 Hickory Sidewalk Contractor Bond?
No, a credit check is not required for the Hickory Sidewalk Contractor bond. Because the bond is considered relatively low risk, the same low rate is offered to all contractors in Hickory, regardless of their credit history.
How Much Does the Hickory Sidewalk Contractor Bond Cost?
The Hickory Sidewalk Contractor bond costs just $100 per year.
Who is Required to Purchase the Bond?
Hickory requires contractors to purchase a $1,000 surety bond as a prerequisite to obtaining a permit authorizing the excavation of a city-owned sidewalk. A contractor is a person that provides construction services as an independent business.
How Do Sidewalk Contractors Apply for a Permit in Hickory?
Sidewalk contractors in Hickory must navigate several steps to obtain a permit. Below are the general guidelines, but contractors should refer to the permitting statutes for details on the process.
Step 1 – Contact the City Manager
Contractors should contact the City Manager’s Office at (828) 323-7412 to obtain an excavation permit. The office will guide the contractor through the application process and inform them of all required documents and fees that must be submitted.
Step 2 – Purchase a Surety Bond
Sidewalk contractors must purchase and maintain a $1,000 surety bond to be eligible for a permit
Step 3 – Notify the Chief of the Fire Department
Before any excavation activities may commence, contractors must inform the Chief of the Hickory Fire Department. Contractors must also inform the chief of when the sidewalk/street will be safe to travel on again.
What are the Insurance Requirements for Sidewalk Contractors in Hickory?
Hickory does not require sidewalk contractors to obtain any form of liability insurance to qualify for a permit. Sidewalk contractors must purchase and maintain a $1,000 surety bond.
How Do Hickory Sidewalk Contractors File Their Bonds?
Sidewalk contractors in Hickory should submit their completed bond forms, including the power of attorney, to the following address:
6 N. Center St (3rd Floor)
Hickory, NC 28601
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
- Date the bond goes into effect
- Date the bond is signed
What Can Hickory Sidewalk Contractors do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, sidewalk contractors in Hickory must:
- Restore all city-owned sidewalks and streets that have been excavated
- Ensure that no persons or property are damaged as a result of the excavation
What Other Insurance Products Can Agents Offer Sidewalk Contractors in Hickory?
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 Hickory Sidewalk Contractor Customers?
Hickory unfortunately does not provide a public database of active permits 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.