High Point Insulation Contractor Bond: A Comprehensive Guide
May 20, 2022
This guide provides information for insurance agents to help their customers obtain a High Point 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 Rocky Mount. 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 High Point, North Carolina
- Purpose: To ensure the public will receive compensation for financial harm if the contractor violates licensing law
- Who Regulates Insulation Contractors in High Point: The High Point Inspection Services Division
High Point Code of Ordinances 9-2-132 requires insulation contractors operating in the city to obtain a license with the Inspection Services Division. The High Point City Council 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.
What is the Purpose of the High Point Insulation Contractor Bond?
High Point requires insulation 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 abide by the regulations outlined in High Point Code of Ordinances 9-2-135. Specifically, the bond protects the public if the contractor damages customers’ property as a result of shoddy installation work. In short, the bond is a type of insurance that protects the city if the contractor violates licensing law.
How Can an Insurance Agent Obtain a High Point Insulation Contractor Surety Bond?
BondExchange makes obtaining a High Point Insulation Contractor Bond easy. Simply login to your account and use our keyword search to find the “insulation” 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.
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Is a Credit Check Required for the High Point Insulation Contractor Bond?
No, a credit check is not required for the High Point Insulation Contractor bond. Because the bond is considered relatively low risk, the same low rate is offered to all contractors in High Point, regardless of their credit history.
How Much Does the High Point Insulation Contractor Bond Cost?
The High Point Insulation Contractor bond costs just $100 per year.
Who is Required to Purchase the Bond?
High Point requires insulation contractors to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase High Point Code of Ordinances 9-2-132, an insulation contractor is a person that alters or restores any insulation or energy utilization equipment as an independent business.
Exemptions to this definition include:
- Contractors licensed by the State of North Carolina
- Persons working under the supervision of a registered architect or professional engineer
- Owners working on their own building
How do Insulation Contractors Apply for a License in High Point?
Insulation contractors in High Point 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 High Point Insulation Contractor Licenses expire on May 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 Planning and Development Department
To obtain a local license, insulation contractors should contact the city’s Planning and Development Department at (336) 883-3328 or in person at the following address:
211 S Hamilton Street
High Point, NC 27261
The department will walk the contractor through the application process and provide them with all required documents that must be submitted. Contractors must pay a $25 fee when submitting their license application.
Step 3 – Purchase a Surety Bond
Insulation contractors must purchase and maintain a $2,000 surety bond
How Do High Point Insulation Contractors Renew Their Licenses?
To renew their licenses, insulation contractors in High Point should contact the Planning and Development Department. All High Point Insulation Contractor Licenses expire on May 31 of each year and must be renewed before the expiration date. Additionally, contractors can renew their state licenses online here and must do so by January 1 of each year.
Does High Point Require Insulation Contractors to Obtain a Permit?
What are the Insurance Requirements for Insulation Contractors in High Point?
Insulation contractors that utilize subcontractors or have employees may need to purchase workers’ compensation insurance. Insulation contractors must purchase and maintain a surety bond.
How Do High Point Insulation Contractors File Their Bonds?
Insulation Contractors in High Point should submit their completed bond forms, including the power of attorney, to the Planning and Development Department at:
211 S Hamilton Street
High Point, NC 27261
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 (insulation contractor) of entity/individual(s) buying the bond
- Surety company’s name, state of incorporation, and city where their principal office is located
- Date the bond is signed
What Can High Point Insulation Contractors Do to Avoid Claims Against Their Bonds?
To avoid claims on their bonds, insulation contractors in High Point must ensure that they 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 High Point?
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 High Point Insulation Contractor Customers?
High Point unfortunately does not provide a public database of licensed insulation contractors. However, the city does provide a database of active construction permits in the city that agents can utilize. We also suggest contacting the Planning and Development Department for additional information on insulation contractors operating in the city. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.