Rocky Mount Demolition Contractor Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Rocky Mount Demolition Contractor bond
At a Glance:
- Lowest Cost: $100 per year or $10 per month (the cost will increase for bonds with limits greater than $25,000)
- Bond Amount: Minimum of $5,000 (more on this later)
- Who Needs it: Demolition contractors performing unusually hazardous work in Rocky Mount, North Carolina
- Purpose: To ensure the city will receive compensation for financial harm if the contractor damages the city’s infrastructure as a result of the demolition
- Who Regulates Demolition Contractors in Rocky Mount: The Rocky Mount Inspection Services Division
Rocky Mount Code of Ordinance 5-81 requires all demolition contractors operating in the city to obtain a permit from the Inspection Services Division before beginning work on a project. The Rocky Mount City Council enacted the permitting requirement to ensure that contractors do not damage the city’s infrastructure when conducting demolitions. To provide financial security for the enforcement of these requirements, demolition contractors performing unusually hazardous work must purchase a surety bond to be eligible for a permit.
What is the Purpose of the Rocky Mount Demolition Contractor Bond?
Rocky Mount requires demolition contractors that are performing unusually hazardous work to purchase a surety bond as part of the application process to obtain a permit. The bond ensures that the city will receive compensation for financial harm if the contractor fails to abide by the regulations outlined in Rocky Mount Code of Ordinances 5-67. Specifically, the bond protects the city if the contractor damages any city streets, sidewalks, or utility lines. In short, the bond is a type of insurance that protects the city if the contractor does not properly perform demolitions.
How Can an Insurance Agent Obtain a Rocky Mount Demolition Contractor Surety Bond?
BondExchange makes obtaining a Rocky Mount Demolition Contractor bond easy. Simply log in to your account and use our keyword search to find the “Rocky Mount” 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 at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
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How is the Bond Amount Determined?
The Rocky Mount fee schedule dictates that the bond amount must be a minimum of $5,000. However, Rocky Mount Code of Ordinances 5-67 grants the Inspection Services Division the authority to increase the required amount, on a case by case basis, to a limit that is deemed sufficient to cover the city for all potential damages. When determining the bond amount for a contractor, the city will examine the scope of the project and where the demolition is taking place.
Is a Credit Check Required for the Rocky Mount Demolition Contractor Bond?
A credit check is not required for Rocky Mount Demolition Contractor bonds with limits of $25,000 or less. Because the bond is considered relatively low risk, the same low rate is offered to all demolition contractors in Rocky Mount regardless of their credit history.
However, surety companies may conduct credit checks on contractors when the bond limit is more than $20,000. The credit check is a “soft hit”, meaning that the credit check will not affect the applicant’s credit.
How Much Does the Rocky Mount Electrical Contractor Bond Cost?
The Rocky Mount Demolition Contractor bonds with limits up to $25,000 cost just $100 per year or $10 per month. Bonds with limits greater than $25,000 may be more expensive based on the qualifications of the applicant.
Who is Required to Purchase the Bond?
Rocky Mount requires demolition contractors performing unusually hazardous work to purchase a surety bond as a prerequisite to obtaining a permit. The city considers demolitions to be unusually hazardous if they present a high risk of damage to the city’s infrastructure.
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 Demolition Contractors Apply For a Permit in Rocky Mount?
Demolition contractors in Rocky Mount must navigate several steps to obtain a permit. Below are the general guidelines, but contractors should refer to the city’s permit application instructions for details on the process.
Step 1 – Register the Business
Rocky Mount Code of Ordinances 5-66 requires demolition contractors to register their business with the Inspection Services Division before applying for a permit. To register their business, demolition contactors should contact the division at (252) 972-1109 or stop by their office between the hours of 8:30 – 9:30 am or 4:00 – 5:00 pm, Monday through Friday, located on the second floor of City Hall.
Step 2 – Complete the Application
Step 3 – Purchase a Surety Bond
If the Inspection Services Division determines that the project poses a significant level of risk to the city, they may require the contractor to purchase and maintain a surety bond
What are the Insurance Requirements for Demolition Permits in Rocky Mount?
Rocky Mount does not require contractors to purchase insurance as a prerequisite to obtaining a demolition permit. However, most reputable contractors will purchase this insurance anyway. Demolition contractors may need to purchase a surety bond.
How Do Rocky Mount Demolition Contractors File Their Bonds?
Contractors should submit their completed bond forms, including the power of attorney, to the Inspection Services Division on the second floor of City Hall.
The surety bond requires signatures, as well as witness 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 entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Bond amount
- Date the bond is signed
What Can Rocky Mount Demolition Contractors do to Avoid Claims Against Their Bonds?
To avoid claims on their bonds, demolition contractors in Rocky Mount must adhere to the terms of their permits, including some of the most important issues below that tend to cause claims:
- Do not abandon the job
- Do not damage any city infrastructure
- Clear all debris within 6 months of completing the demolition
What Other Insurance Products Can Agents Offer Rocky Mount Demolition Contractors?
Most reputable demolition contractors will purchase liability insurance. 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 Rocky Mount Demolition Contractor Customers?
Rocky Mount unfortunately does not provide a public database of active demolition contractors in the city. We suggest contacting the Inspection Services Division to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.