Newcastle Electrical Contractor Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Newcastle Electrical Contractor Bond
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: Either $10,000 or $25,000 depending on the contractor’s license classification
- Who Needs it: All electrical contractors operating in Newcastle, Wyoming
- Purpose: To ensure the public will receive compensation for any damages should the contractor violate licensing law
- Who Requires the Bond: The City of Newcastle
Newcastle Municipal Code 9-14 requires all electrical contractors operating in the city to obtain a business license. The Newcastle city council enacted the licensing requirement to ensure that contractors engage in ethical business practices. To provide financial security for the enforcement of the licensing law, electrical contractors must purchase and maintain a $1,000 surety bond to be eligible for licensure.
What is the Purpose of the Newcastle Electrical Contractor Bond?
Newcastle requires electrical 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 electrical contractor fails to comply with the regulations set forth in Newcastle Municipal Code 9-19. Specifically, the bond protects the public in the event the contractor engages in any acts of fraud or breaches any contracts made with consumers. In short, the bond is a type of insurance that protects the public if the electrical contractor breaks licensing law.
How Can an Insurance Agent Obtain a Newcastle Electrical Contractor Surety Bond?
BondExchange makes obtaining a Newcastle Electrical Contractor bond easy. Simply login to your account and use our keyword search to find the “contractor” 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 (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 Newcastle Electrical Contractor Bond?
No, a credit check is not required for the Newcastle Electrical Contractor bond. Because the bond is considered relatively low risk, the same low rate is offered to all contractors operating in the city, regardless of their credit history.
How Much Does the Newcastle Electrical Contractor Bond Cost?
The Newcastle Electrical Contractor bond costs just $100 per year or $10 per month.
Who is Required to Purchase a Bond?
Newcastle requires all electrical contractors operating in the city to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Newcastle Municipal Code 9-1, an electrical contractor is a person who installs and/or repairs electrical wiring systems.
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 Electrical Contractors Apply for a License in Newcastle?
Electrical contractors in Newcastle must navigate several steps to secure a business license. Below are the general guidelines, but applicants should refer to the licensing statutes for details on the process.
License Period – All Newcastle Electrical Contractor Licenses expire on December 31 of each year and must be renewed before the expiration date
Step 1 – Hire a Master or Journeyman Electrician
All electrical contractors operating in Newcastle must, at all times, employ at least one licensed master or journeyman electrician or become licensed themselves. To apply for a master or journeyman license, electricians must contact city hall to obtain an application. Additionally, master and journeyman electricians must obtain a state license through the Wyoming Department of Fire Protection and Electrical Safety prior to receiving their local business license.
Step 2 – Purchase a Surety Bond
Electrical contractors must purchase and maintain a $1,000 surety bond
Step 3 – Purchase Insurance
Contractors are required to purchase public liability insurance (contact city hall for the minimum limits)
Step 4 – Complete the Application
Contractors should contact city hall to obtain an Electrical Contractor License application. Contractors must complete the application in its entirety, and pay a $50 fee.
How do Newcastle Electrical Contractors Renew Their Business Licenses?
Electrical contractors in Newcastle can renew their business licenses in person by visiting city hall at the following address:
10 W Warwick St
Newcastle, WY 82701
All Newcastle Electrical Contractor Licenses expire on December 31 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Electrical Contractors in Newcastle?
Newcastle requires electrical contractors to purchase public liability insurance. Electrical contractors must purchase and maintain a $1,000 surety bond.
How Do Newcastle Electrical Contractors File Their Bonds?
Electrical contractors should deliver their completed bond forms, including the power of attorney, to the following address:
10 W Warwick St
Newcastle, WY 82701
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
- Bond amount
- Entity requiring the bond
- Date the bond goes into effect
- Date the bond is signed
What Can Newcastle Electrical Contractors do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, electrical contractors in Newcastle must adhere to all licensing regulations in the city, including some of the most important issues below that tend to cause claims:
- Do not engage in any acts of fraud
- Do not breach any contracts made with consumers
- Provide all services that have been paid for
What Other Insurance Products Can Agents Offer Electrical Contractors in Newcastle?
Newcastle requires electrical contractors to purchase public liability insurance as a prerequisite to obtaining a business license. 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 Newcastle Electrical Contractor Customers?
Newcastle unfortunately does not provide a public database listing active electrical contractors in the city. We suggest contacting city hall directly to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.