Oklahoma Plumbing Contractor Bond: A Comprehensive Guide
This guide provides information for insurance agents to help contractors on Oklahoma Plumbing Contractor bonds
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: $5,000
- Who Needs It: All individuals and businesses seeking to obtain a Plumbing Contractor License in the State of Oklahoma
- Purpose: To ensure the public will receive compensation for any damages should the contractor fail to comply with licensing law
- Who Regulates Plumbing Contractors in Oklahoma: The Oklahoma Construction Industries Board (CIB)
Background
Oklahoma statute 158:30-1-3 requires all plumbing contractors operating in the state to obtain a license with the CIB. The Oklahoma 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 purchase and maintain a $5,000 plumbing contractor surety bond to be eligible for licensure.
What is the Purpose of the Oklahoma Plumbing Contractor Bond?
Oklahoma requires contractors to purchase the Plumbing Contractor Bond as part of the application process to obtain a plumbing contractor 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 an Oklahoma Plumbing Contractor Surety Bond?
BondExchange makes obtaining an Oklahoma 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 Oklahoma Plumbing Contractor Bond?
No, a credit check is not required for the Oklahoma Plumbing Contractor Bond. Because this bond is considered relatively low-risk, the same low rate is offered to all plumbing contractors in Oklahoma.
How Much Does the Oklahoma Plumbing Contractor Bond Cost?
The $5,000 Oklahoma Plumbing Contractor Bond costs either $100 per year or $10 per month.
How Does Oklahoma Define “Plumbing Contractor”?
To paraphrase Oregon Statute 158:30-1-2, a plumbing contractor is any individual who installs, repairs, replaces or alters plumbing fixtures as an independent business.
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 Oklahoma?
Contractors in Oklahoma must navigate several steps to secure their plumbing contractor license. Below are the general guidelines, but contractors should refer to the CIB’s licensing page for details on the process.
License Period – The Oklahoma Plumbing Contractor License is valid for three years from the date of issuance and must be renewed before the expiration date
Step 1 – Meet the Experience Requirements
Applicants for a plumbing contractor license must have the necessary experience as required by the CIB. Contractors must meet any one of the following criteria to obtain an Oklahoma plumbing contractor license:
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- 4 years of experience as an employee of a licensed plumbing contractor
- 4 years in relevant experience in the US military
- Is currently licensed and in good standing in another state
- An associate degree or career tech diploma consisting of at least 1,000 classroom hours and 2 years of work experience
- A career tech diploma consisting of at least 500 classroom hours and three years of work experience
Step 2 – Purchase a Surety Bond
Plumbing contractors will need to purchase and maintain a $5,000 plumbing contractor surety bond
Step 3 – Purchase Insurance
Plumbing contractors must purchase liability insurance with a minimum limit of $50,000
*Schools, hospitals, and government agencies may submit a Plumbing Affidavit requesting exemption from the bond and insurance requirements
Step 4 – Complete the Application
All plumbing contractor regulatory license applications should be mailed to:
Construction Industries Board
2401 NW 23rd, Suite 2F
Oklahoma City, OK 73107
Contractors must complete the application, including the following steps:
4.a Experience Affidavit – Contractors will need to submit affidavits filled out and signed by previous employers who can verify the contractor’s work experience
4.b Fees – Contractors must submit a $330 application fee when submitting their license application
Step 5 – Pass the Exam
Once the contractor has submitted their application, they will be able to register for and complete their license examination. Contractors can learn more about the exam requirements here.
How Does an Oklahoma Plumbing Contractor Renew Their License?
Plumbing contractors can mail their completed renewal application, including a $200 renewal fee, to the following address:
Construction Industries Board
2401 NW 23rd, Suite 2F
Oklahoma City, OK 73107
Plumbing contractors will need to complete 6 hours of continuing education each renewal period. A list of continuing education course providers can be found here.
What Are the Insurance Requirements for the Oklahoma Plumbing Contractor License?
The State of Oklahoma requires plumbing contractors to purchase liability insurance with a minimum limit of $50,000. Contractors will need to purchase and maintain a $5,000 surety bond.
How Do Oklahoma Plumbing Contractors File Their Bond With The Oklahoma CIB?
Contractors should mail the completed bond form, including the power of attorney, to the following address:
Construction Industries Board
2401 NW 23rd, Suite 2F
Oklahoma City, OK 73107
The plumbing contractor 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:
- Legal name of the entity/individual(s) buying the bond
- Surety company’s name
- The contractor’s license type
What Can Contractors Do to Avoid Claims Against the Oklahoma Plumbing Contractor Bond?
To avoid claims on the Plumbing Contractor Bond, contractors must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:
- Honor all contractual obligations when completing a project
- Do not engage in any acts of fraud
- Pay all taxes and fees
What Other Insurance Products Can Agents Offer Plumbing Contractors in Oklahoma?
Oklahoma requires plumbing contractors to obtain liability insurance. 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 Oklahoma Plumbing Contractor Customers?
Oklahoma conveniently provides a public database to search for active plumbing 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 Oklahoma?
Contractors in Oklahoma will need to obtain specific bonds correlating with their license type. Below are all the different contractor licensing bonds required by the State of Oklahoma:
- Electrical Contractor – $5,000 bond limit
- Mechanical Contractor – $5,000 bond limit
- Soil Profiler – $10,000 bond limit
- Septic Tank Installer – $10,000 bond limit