Newcastle Plumbing Contractor Bond: A Comprehensive Guide

This guide provides information for insurance agents to help their customers obtain a Newcastle Plumbing Contractor Bond

At a Glance:

• Lowest Cost: $100 per year or $10 per month
• Bond Amount: $1,000
• Who Needs it: All plumbing contractors operating in Newcastle, Wyoming
• Purpose: To ensure the public will receive compensation for any damages should the plumber violate licensing law
• Who Requires the Bond: The City of Newcastle

Background

Newcastle Municipal Code 18-5 requires all plumbing contractors operating in the city to obtain a business license. The Newcastle city council enacted the licensing requirement to ensure that plumbers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, plumbing contractors must purchase and maintain a $1,000 surety bond to be eligible for licensure.

What is the Purpose of the Newcastle Plumbing Contractor Bond?

Newcastle requires plumbing 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 plumber fails to comply with the regulations set forth in Newcastle Municipal Code 18-5. Specifically, the bond protects the public in the event the plumber does not return public utilities altered through the course of a project to their original conditions or fails to perform work that has been paid for. In short, the bond is a type of insurance that protects the public if the plumbing contractor breaks licensing law.

How Can an Insurance Agent Obtain a Newcastle Plumbing Contractor Surety Bond?

BondExchange makes obtaining a Newcastle Plumbing 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 Plumbing Contractor Bond?

No, a credit check is not required for the Newcastle Plumbing Contractor bond. Because the bond is considered relatively low risk, the same low rate is offered to all plumbers operating in the city, regardless of their credit history.

How Much Does the Newcastle Plumbing Contractor Bond Cost?

The Newcastle Plumbing Contractor bond costs just $100 per year or $10 per month.

Who is Required to Purchase a Bond?

Newcastle requires all plumbing contractors operating in the city to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Newcastle Municipal Code 18-2, a plumbing contractor is an independent business that installs pipes, fixtures, and equipment for water, gas, sewage, etc.

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 Plumbing Contractors Apply for a License in Newcastle?

Plumbing 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 Plumbing Contractor Licenses expire annually and must be renewed before the expiration date

Step 1 – Hire a Master Plumber

Newcastle requires all plumbing contractors to at all times employ at least one licensed master plumber who is responsible for supervising all work performed under the contractor license. To apply for a master plumber license, applicants must complete an application (which can be obtained by contacting city hall), pay a $50 licensing fee, and pass the required exam.

Master plumbers must renew their licenses annually.

Step 2 – Purchase a Surety Bond

Plumbing contractors must purchase and maintain a $1,000 surety bond

Step 3 – Purchase Insurance

Plumbing contractors operating in Newcastle must purchase public liability insurance with the following minimum limits:

• • $20,000 per person
  • $40,000 per occurrence
  • $4,000 property damage ($20,000 aggregate per year)

Step 4 – Complete the Application

Contractors should contact city hall to obtain a Plumbing Contractor License application. Contractors must complete the application in its entirety, and pay a $100 fee.

How do Newcastle Plumbing Contractors Renew Their Business Licenses?

Plumbing 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 Plumbing Contractor Licenses expire annually and must be renewed before the expiration date.

What are the Insurance Requirements for Plumbing Contractors in Newcastle?

Newcastle requires plumbing contractors to purchase public liability insurance with the following minimum limits:

• $20,000 per person
• $40,000 per occurrence
• $4,000 property damage ($20,000 aggregate per year)

Plumbing contractors must purchase and maintain a $1,000 surety bond.

How Do Newcastle Plumbing Contractors File Their Bonds?

Plumbing 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 Plumbing Contractors do to Avoid Claims Against Their Bonds?

To avoid claims against their bonds, plumbing 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:

• Adequately perform all work that has been paid for
• Return all public utilities altered throughout the course of a project to their original conditions

What Other Insurance Products Can Agents Offer Plumbing Contractors in Newcastle?

Newcastle requires plumbing 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 Plumbing Contractor Customers?

Newcastle unfortunately does not provide a public database listing active plumbing 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.