Kinston Completion Bond

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Kinston Completion Bond: A Comprehensive Guide

This guide provides information for insurance agents to help their customers obtain a Kinston Completion bond

At a Glance:

  • Lowest Cost: $100 per year or $10 per month, based on the applicant’s credit history
  • Bond Amount: Determined on a case by case basis (more on this later)
  • Who Needs it: All persons applying for a permit to excavate the surface of any portion of a city right-of-way in Kinston, North Carolina
  • Purpose: To ensure the public will receive compensation for financial harm if the permittee fails to complete the work or make all necessary repairs
  • Who Requires the Bond: The City of Kinston
Kinston Completion Bond Form
Kinston Completion Bond Form


Kinston Code of Ordinances 20-28 requires all persons seeking to excavate the service of any city right-of-way to obtain a permit from the City Engineer. The Kinston City Council enacted the permit requirement to ensure that alterations to a city right-of-way do not damage the city’s infrastructure. To provide financial security for the enforcement of the permitting requirement, applicants must purchase a surety bond to be eligible for a permit.

“Right-of-way” refers to the areas in which the public has the legal right to travel across. For example, persons excavating any city streets or sidewalks would need a permit, as they are conducting operations in a city right-of-way.

City Right of Way

What is the Purpose of the Kinston Completion Bond?

Kinston requires persons excavating any city right-of-way to purchase a surety bond as part of the application process to obtain a permit. The bond ensures that the city will receive compensation for financial harm if the excavator fails to abide by the regulations outlined in Kinston Code of Ordinances 20-28. Specifically, the bond protects the city if the excavator fails to make repairs to the right-of-way. In short, the bond is a type of insurance that protects the city if the excavator violates the terms of their permit.

How Can an Insurance Agent Obtain a Kinston Completion Surety Bond?

BondExchange makes obtaining a Kinston Completion bond easy. Simply log in to your account and use our keyword search to find the “completion” bond in our database. Don’t have a login? Gain access 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.

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.

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How is the Bond Amount Determined?

Kinston Code of Ordinances 20-28 grants the city the authority to set the bond amount on a case by case basis in an amount that they deem sufficient to cover the repair of any possible damage done to the city right-of-way. When determining the bond amount, the city will consider the project’s scope and estimated cost.

Is a Credit Check Required for the Kinston Completion Bond?

Surety companies will run a credit check on the applicant to determine eligibility and pricing for the Kinston Completion bond. Applicants with excellent credit and work experience can expect to receive the best rates. Applicants with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the applicant’s credit.

How Much Does the Kinston Completion Bond Cost?

The Kinston Completion bond can cost anywhere between 1% to 12.5% of the bond amount per year. Insurance companies determine the rate based on several factors including your customer’s credit score and experience. The chart below offers a quick reference for the bond cost on a $10,000 bond requirement.

$10,000 Completion Bond Cost

Credit Score Bond Cost (1 year) Bond Cost (1 month)
720+ $100 $10
680 – 719 $150 $15
650 – 679 $200 $20
600 – 649 $400 $40
550 – 599 $750 $75
500 – 549 $1,250 $125

*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.

Who is Required to Purchase the Bond?

Kinston Code of Ordinances 20-28 requires all persons seeking to “cut, dig, bore, tunnel, excavate or otherwise disturb or change the surface or subsurface of any portion of any city right-of-way” to purchase a surety bond as a prerequisite to obtaining a permit.

City agents and employees are exempt from this requirement.

Kinston Completion Bond

BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.

How do Your Customers Apply For a Kinston Right-Of-Way Excavation Permit?

Your customers must navigate several steps to obtain a Kinston Right-Of-Way Excavation Permit. Below are the general guidelines, but your customers should refer to the permitting statutes for details on the process.

Step 1 – Purchase Insurance

Your customers must purchase the following types of insurance to be eligible for a permit:

    • Workers’ Compensation (required if your customer has employees or is hiring subcontractors)
    • Comprehensive Automobile Liability
      • $100,000 bodily injury per person
      • $50,000 property damage per accident
    • Comprehensive General Liability
      • $300,000 per person per accident
      • $50,000 property damage per accident

Step 2 – Complete the Application

All Kinston Right-Of-Way Excavation Permit applications must be submitted to the city’s Engineering Section. Your customers must complete the application in its entirety and pay all required fees.

Step 3 – Purchase a Surety Bond

Once your customer’s application has been approved, the Engineering Section will inform them of the required bond amount

How Do Your Customers File Their Kinston Completion Bonds?

Your customers should submit their completed bond forms, including the power of attorney, to the city’s Engineering Section.

The surety bond requires signatures from both the surety company that issues the bond and from your customer. The surety company should include the following information on the bond form:

  • Legal name of entity/individual(s) buying the bond
  • Surety company’s name
  • Bond amount
  • Description of the excavation project
  • Date the bond is signed

What Can Your Customers Do to Avoid Claims Against Their Kinston Completion Bonds?

To avoid claims on their Kinston Completion bonds, your customers must ensure that they complete the project and make all necessary repairs to the city right-of-way.

What Other Insurance Products Can Agents Offer Kinston Completion Bond Applicants?

Kinston requires applications for Right-Of-Way Excavation Permits to purchase liability, auto, and workers’ compensation 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 Customers in Need of Kinston Completion Bonds?

Kinston unfortunately does not provide a public database of active Right-Of-Way Excavation Permits in the city. We suggest contacting the Engineering Section to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

Kinston Completion Bond