North Carolina Landscape Contractor’s License Bond: A Comprehensive Guide
February 8, 2021
This guide provides information for insurance agents to help contractors on North Carolina Landscape Contractor’s License Bonds
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $10,000
- Who Needs It: All individuals and business entities seeking to obtain a landscape contractor’s license in the State of North Carolina
- Purpose: To ensure the public will receive compensation for any damages should the contractor fail to comply with contractor licensing law
- Who Regulates Landscape Contractors in North Carolina: The North Carolina Landscape Contractors’ Licensing Board (LCLB)
North Carolina Statute 89D-12 requires landscape contractors operating in the state to obtain a license with the LCLB. The North Carolina legislature enacted the licensing laws and regulations to ensure that contractors engage in ethical business practices. In order to provide financial security for the enforcement of the licensing law, contractors must either deposit cash or purchase and maintain a $10,000 landscape contractor’s license surety bond to be eligible for licensure.
What is the Purpose of the North Carolina Landscape Contractor’s License Bond?
North Carolina requires contractors to purchase the Landscape Contractor’s License Bond as part of the application process to obtain a landscape contractor’s license. The bond ensures that the public will receive compensation for financial harm if the contractor fails to comply with the licensing regulations. In short, the bond is a type of insurance that protects the public if the contractor breaks licensing laws.
How Can an Insurance Agent Obtain a North Carolina Landscape Contractor’s License Surety Bond?
BondExchange makes obtaining a North Carolina Landscape Contractor’s License 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? 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 North Carolina Landscape Contractor’s License Bond?
No, a credit check is not required for the North Carolina Landscape Contractor’s License Bond. Because this bond is considered relatively low-risk, the same low rate is offered to all irrigation contractors in North Carolina.
How Much Does the North Carolina Landscape Contractor’s License Bond Cost?
The $10,000 North Carolina Landscape Contractor’s License Bond costs just $100 per year.
How Does North Carolina Define “Landscape Contractor”?
To paraphrase North Carolina Statute 89D-11, a landscape contractor is any individual who performs landscaping and hardscaping services as an independent business.
How Do Landscape Contractors Apply for a License in North Carolina?
Contractors in North Carolina must navigate several steps to secure their landscape contractor’s license. Below are the general guidelines, but contractors should refer to the LCLB’s instructions page for details on the process.
License Period – The North Carolina Landscape Contractor’s License expires on August 31 of each year and must be renewed before the expiration date
Step 1 – Determine the License Type
North Carolina requires contractors to obtain specific licenses corresponding to the nature in which the contractor’s business operates. Below are the different types of the North Carolina Landscape Contractor’s License:
- Individual: Should be completed by individual contractors applying for licensure by examination
- Corporate: Should be completed by contractors whose business entity is either a corporation, LLC, or partnership. All corporate landscape contractors must have at least one member of their organization be individually licensed
Step 2 – Purchase a Surety Bond or Deposit Cash
Contractors must deposit cash or purchase and maintain a $10,000 landscape contractor’s license surety bond
Step 3 – Complete the Application
All landscape contractor regulatory license applications should be mailed to:
NC Landscape Contractors’ Licensing Board
P.O. Box 20875
Raleigh, NC 27619
Contractors must complete the application corresponding to their specific license type, including the following steps:
3.b Business Identification – Applicants must provide evidence of business identification with their exam
3.c Letters of Recommendation – Contractors must submit a total of 5 (3 personal, 2 professional) letters of recommendation
3.d Fees – Contractors are required to submit a $75 application fee with their license application
Step 4 – Pass the Exam
Once the contractor has submitted their application, they will be contacted by the LCLB with instructions on how to take the required licensure examination. Contractors must pay a $150 exam fee.
Step 5 – Pay the Licensing Fee
After the contractor has passed their licensing exam, they must then pay a a $60 licensing fee to the LCLB prior to receiving their license
How Does a North Carolina Landscape Contractor Renew Their License?
Contractors can renew their individual license online here, and their corporate license online here. Contractors must complete 7 hours of continuing education each renewal period (except their first one) and submit a $60 renewal fee with their application.
What Are the Insurance Requirements for the North Carolina Landscape Contractor License?
The State of North Carolina does not require landscape contractors to purchase any form of liability insurance. Landscape contractors will need to deposit cash or purchase and maintain a $10,000 surety bond.
How Do North Carolina Landscape Contractors File Their Bond?
Contractors should mail the completed bond form, including the power of attorney, to the following address:
NC Landscape Contractors’ Licensing Board
P.O. Box 20875
Raleigh, NC 27619
The landscape contractor’s license surety bond requires signatures from both the surety company that issues the bond and the contractor. The surety company should include the following information on the bond form:
- The license type (individual or corporation)
- Name, phone number, and address of the insurance agent issuing the bond
- Legal name of the entity/individual(s) buying the bond
- Surety company’s name
- Date the bond is signed
What Can Contractors Do to Avoid Claims Against the North Carolina Landscape Contractor’s License Bond?
To avoid claims on the Landscape Contractor’s License Bond, contractors must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:
- Do not engage in any acts of fraud
- Do not commit any acts of gross malpractice or incompetence
What Other Insurance Products Can Agents Offer Landscape Contractors in North Carolina?
North Carolina does not require landscape contractors to obtain any form of liability insurance. However, most reputable contractors will purchase this insurance anyway. Bonds are our only business at BondExchange, so we do not issue liability 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 North Carolina Landscape Contractor Customers?
North Carolina conveniently provides a public database to search for active landscape contractors in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
What other Contractor License Bonds are Required in North Carolina?
Contractors in North Carolina will need to obtain specific bonds correlating with their license type. Below are all the different contractor licensing bonds required by the State of North Carolina: