Mountain Brook Blasting Contractor Bond: A Comprehensive Guide
June 15, 2022
This guide provides information for insurance agents to help their customers obtain a Mountain Brook Blasting Contractor bond
At a Glance:
- Average Cost: Between $500 to $5,000 per year based on the applicant’s credit
- Bond Amount: $100,000
- Who Needs it: All blasting contractors operating in Mountain Brook, Alabama
- Purpose: To ensure the public will receive compensation for any damages should the contractor violate the terms of their permit
- Who Requires the Bond: The City of Mountain Brook
Mountain Brook Municipal Code 105-2 requires all blasting contractors operating in the city to obtain a permit before beginning work on a job. The Mountain Brook City Council enacted the permitting requirement to ensure that blasting contractors conduct operations safely and do not damage persons or property as a result of all explosions. To provide financial security for the enforcement of the permitting law, blasting contractors must purchase and maintain a $100,000 surety bond to be eligible for a permit.
What is the Purpose of the Mountain Brook Blasting Contractor Bond?
Mountain Brook requires blasting contractors to purchase a surety bond as part of the application process to obtain a permit. The bond ensures that the public will receive compensation for financial harm if the contractor fails to comply with the regulations set forth in Mountain Brook Municipal Code 105-5. Specifically, the bond protects the public in the event the contractor damages any persons or property during an explosion or fails to return any excavated site to a safe condition. In short, the bond is a type of insurance that protects the public if the contractor breaches the permitting laws.
How Can an Insurance Agent Obtain a Mountain Brook Blasting Contractor Surety Bond?
BondExchange makes obtaining a Mountain Brook Blasting Contractor bond easy. Simply log in to your account and use our keyword search to find the “Mountain Brook” 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.
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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Is a Credit Check Required for the Mountain Brook Blasting Contractor Bond?
Surety companies will run a credit check on the permit applicant to determine eligibility and pricing for the Mountain Brook Blasting Contractor 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 Mountain Brook Blasting Contractor Bond Cost?
The Mountain Brook Blasting Contractor bond can cost anywhere between $500 to $5,000 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 the $100,000 bond requirement.
$100,000 Blasting Contractor Bond Cost
|Credit Score||Bond Cost (1 year)|
|600 – 624||$1,500|
|550 – 599||$2,500|
|525 – 549||$3,000|
|500 – 524||$5,000|
*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?
Mountain Brook requires blasting contractors to purchase a surety bond as a prerequisite to obtaining a permit. To paraphrase Mountain Brook Municipal Code 105-1, a blasting contractor is a person that, as an independent business, plans, organizes, supervises, and conducts blasting operations for clients.
How Do Blasting Contractors Apply for a Permit in Mountain Brook?
Blasting contractors in Mountain Brook must navigate several steps to secure a permit. Below are the general guidelines, but applicants should refer to the permitting statutes for details on the process.
Step 1 – Obtain a State License
All blasting contractors operating in Alabama must obtain a license from the State Fire Marshall’s Office. To obtain a license, contractors must submit a completed application online here. Additionally, individual blasters must also obtain a blaster certification and can do so online here.
Step 2 – Purchase a Surety Bond
Blasting contractors must purchase and maintain a $100,000 surety bond
Step 3 – Purchase Liability Insurance
Mountain Brook requires blasting contractors to purchase liability insurance with a minimum of $500,000 in equal limits for explosion, collapse, and underground coverages. Contractors must provide proof of insurance when submitting their permit applications.
Step 4 – Apply for a Local Business License
Blasting contractors are required to obtain a local business license before applying for a permit. Contractors can obtain a license by mailing a completed application to the following address:
State of Alabama
City of Mountain Brook
P.O. Box 130009
Mountain Brook AL 35213
Step 5 – Apply For a Permit
Contractors may apply for a permit after satisfying all licensing and insurance requirements. To apply for a permit, contractors should visit the city’s Planning, Building, and Sustainability Department at the following address:
Mountain Brook City Hall
56 Church Street
Mountain Brook, AL 35213
The department will walk the contractor through the application process and provide them with any form that must be submitted. Contractors must pay a $200 fee when submitting their permit application.
Additionally, contractors must pass a pre-blast survey of the blasting site before any explosions can occur.
Do Mountain Brook Blasting Contractors Need to Renew Their Permits?
No, blasting contractors in Mountain Brook do not need to renew their permits as they will be valid for the duration of the job. However, contractors must obtain a separate permit for each blasting job they undertake.
What are the Insurance Requirements for Blasting Contractors in Mountain Brook?
Mountain Brook requires blasting contractors to purchase at least $500,000 worth of liability insurance with equal limits for the explosion, collapse, and underground coverages. Blasting contractors also must purchase and maintain a $100,000 surety bond.
How Do Mountain Brook Blasting Contractors File Their Bonds?
Blasting contractors should submit their completed bond forms, including the power of attorney, to the following address:
State of Alabama
City of Mountain Brook
P.O. Box 130009
Mountain Brook AL 35213
The 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 of entity/individual(s) buying the bond
- Surety company’s name, address, and phone number
- Date the bond is signed
What Can Mountain Brook Blasting Contractors Do to Avoid Claims Against Their Bonds?
To avoid claims on their bonds, blasting contractors in Mountain Brook must follow all permit regulations in the city, including some of the most critical issues below that tend to cause a claim:
- Do not damage any persons or property as a result of explosions
- Do not be negligent
- Return all ditches and excavations opened to safe conditions and maintain them for a period of one year
What Other Insurance Products Can Agents Offer Blasting Contractors in Mountain Brook?
Mountain Brook requires blasting contractors to purchase liability insurance. Bonds are our only business at BondExchange, so we do not issue 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 Mountain Brook Blasting Contractor Customers?
We suggest agents contact the city directly for a list of active blasting contractors as well as utilize the city’s permit portal to view all issued blasting permits. Additionally, the Alabama Fire Marshall’s Office conveniently provides a public database to search for active blasting contractors in the state. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.