Rhode Island Plumbers and Mechanical Permit Bond: A Comprehensive Guide
January 8th, 2021
This guide provides information for insurance agents to help contractors on Rhode Island Plumbers and Mechanical Permit bonds
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $3,000
- Who Needs It: All plumbers and mechanical contractors seeking to obtain a permit in the State of Rhode Island
- Purpose: To ensure the public will receive compensation for any damages should the contractor fail to comply with permitting law
- Who Regulates Plumbers and Mechanical Permits in Rhode Island: The Rhode Island Department of Labor and Training (DOLT)
Rhode Island General Law 5-20-26 grants local municipalities the authority to require plumbers and mechanical contractors to obtain a permit for the installation and repair of plumbing systems. The Rhode Island legislature enacted the permitting laws and regulations to ensure that contractors engage in ethical business practices and remit all required taxes and fees to their local municipalities. In order to provide financial security for the enforcement of the permitting law, plumbers and mechanical contractors must purchase and maintain a $3,000 plumbers and mechanical permit surety bond to be eligible to receive a permit.
What is the Purpose of the Rhode Island Plumbers and Mechanical Permit Bond?
Rhode Island requires plumbers and mechanical contractors to purchase the Plumbers and Mechanical Permit bond as part of the application process to receive a plumbers and mechanical permit. The bond ensures that the public will receive compensation for financial harm if the contractor fails to comply with the permitting regulations. In short, the bond is a type of insurance that protects the public if the contractor breaks permitting laws.
How Can an Insurance Agent Obtain a Rhode Island Plumbers and Mechanical Permit Surety Bond?
BondExchange makes obtaining a Rhode Island Plumbers and Mechanical Permit 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 Rhode Island Plumber and Mechanical Permit Bond?
No, a credit check is not required for the Rhode Island Plumber and Mechanical Permit bond. Because this bond is considered relatively low-risk, the same low rate is offered to all contractors in Rhode Island.
How Much Does the Rhode Island Plumber and Mechanical Permit Bond Cost?
The $3,000 Rhode Island Plumber and Mechanical Permit bond costs just $100 per year.
How Does Rhode Island Define “Plumber”?
To paraphrase Rhode Island General Law 5-20-3, a plumber is any individual or business entity who installs, maintains, or repairs plumbing fixtures as an independent business.
How Do Plumbers and Mechanical Contractors Apply for a Permit in Rhode Island?
Plumbers and Mechanical contractors in Rhode Island must navigate several steps to secure a plumbers and mechanical permit. Below are the general guidelines, but contractors utilize the Rhode Island E-Permitting Portal for details on the process.
Plumbers and mechanical permits are issued locally in Rhode Island. Meaning, each municipality will have its own requirements for obtaining a permit. The below steps will remain consistent among each municipality, but permit applicants should refer to their local municipality’s permit application for additional requirements.
Step 1 – Obtain a License
Plumbers and mechanical contractors must first be licensed prior to applying for a permit. Plumbers can refer to the license application packet for details on how to obtain a license.
Step 2 – Purchase a Surety Bond
Plumbers and mechanical contractors will need to purchase and maintain a $3,000 plumbers and mechanical permit bond
Step 3 – Complete the Permit Application
Permit applicants will need to apply for a permit through their local municipality’s online permit portal. Contractors can utilize the Rhode Island E-Permitting Portal to quickly access their specific permit portal. As mentioned above, each municipality will have their own specific requirements to obtain a permit. Generally, the municipalities will seek proof of licensure and details on the project the permit is being obtained for.
Step 4 – Pay Fees
Plumbers and mechanical contractors will need to pay any and all permit fees required by their local municipality
Do Rhode Island Plumbers and Mechanical Contractors Need to Renew Their Permit?
No, plumbers and mechanical contractors will not need to renew a plumbers and mechanical permit. However, they will need to obtain a permit for each job they wish to perform in accordance with the permit requirements set forth by their local municipality.
What Are the Insurance Requirements for Plumbers and Mechanical Contractors in Rhode Island?
The State of Rhode Island does not require plumbers and mechanical contractors to obtain any form of liability insurance. Contractors with employees will need to purchase worker’s compensation insurance. Plumbers and mechanical contractors seeking to obtain a permit will need to purchase a $3,000 Plumbers and Mechanical Permit bond.
How Do Rhode Island Plumbers and Mechanical Contractors File Their Bond With The DOLT?
Contractors should mail the completed bond form, including the power of attorney, to the following address:
Department of Labor and Training
Division of Professional Regulation
1511 Pontiac Avenue Building 70
P.O. Box 20247
Cranston, Rhode Island
The plumbers and mechanical permit 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 and address of the entity/individual(s) buying the bond
- Surety company’s name
- State and city the surety company is located in
- Contractor’s license number
- The bond term
- Date the bond is sealed
What Can Contractors Do to Avoid Claims Against the Rhode Island Plumbers and Mechanical Permit Bond?
To avoid claims on the Plumbers and Mechanical Permit Bond, contractors must follow all permit regulations set forth by their local municipality, including some of the most important issues below that tend to cause claims:
- Pay all required taxes and fees
- Repair all public property damaged throughout the course of the project
What Other Insurance Products Can Agents Offer Plumbers and Mechanical Contractors in Rhode Island?
Rhode Island does not require plumbers and mechanical contractors to obtain any form of liability insurance, however most reputable contractors will seek to obtain liability 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 Rhode Island Plumbers and Mechanical Contractor Customers?
Rhode Island conveniently provides a public database to search for active plumbers and mechanical 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 Rhode Island?
Contractors in Rhode Island will need to obtain specific bonds correlating with their license type. Below are all the different contractor licensing bonds required by the State of Rhode Island:
- Underground Utility License – $20,000 bond limit
- Blasting License – $50,000 bond limit