Sheridan Contractor License Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Sheridan Contractor License Bond
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: Either $10,000 or $25,000 depending on the contractor’s license classification
- Who Needs it: All contractors operating in Sheridan, Wyoming
- Purpose: To ensure the public will receive compensation for any damages should the contractor violate licensing law
- Who Regulates Contractors in Sheridan: The Sheridan Building Department
Background
Sheridan Municipal Code 7-11 requires all contractors operating in the city to obtain a business license. The Sheridan city council enacted the licensing requirement to ensure that contractors engage in ethical business practices. To provide financial security for the enforcement of the licensing law, contractors must purchase and maintain a surety bond to be eligible for licensure.
What is the Purpose of the Sheridan Contractor License Bond?
Sheridan requires 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 contractor fails to comply with the regulations set forth in Sheridan Municipal Code 7-11. Specifically, the bond protects the public in the event the contractor engages in any acts of fraud or fails to provide services that have been paid for. In short, the bond is a type of insurance that protects the public if the contractor breaks licensing law.
How Can an Insurance Agent Obtain a Sheridan Contractor License Surety Bond?
BondExchange makes obtaining a Sheridan Contractor 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? 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.
How is the Bond Amount Determined?
Sheridan municipal code 7-11 dictates the bond amount must be either $10,000 or $25,000 depending on the contractor’s license classification, as referenced in the below table:
Table 1
| Contractor Classification | Bond Amount |
|---|---|
| General | $25,000 |
| Plumbing | $10,000 |
| HVAC | $10,000 |
| Fire Sprinkler | $10,000 |
| Electrical | $10,000 |
| Electrical (low voltage) | $10,000 |
| Electrical (limited) | $10,000 |
| Structural Concrete | $10,000 |
| Roofing | $10,000 |
| Masonry | $10,000 |
| Drywall Subcontractor | $10,000 |
| Siding/Gazing | $10,000 |
| Plastering/Acoustical | $10,000 |
| Sign/Solar | $10,000 |
| Excavator | $10,000 |
| Utility | $10,000 |
Is a Credit Check Required for the Sheridan Contractor License Bond?
No, a credit check is not required for the Sheridan Contractor License bond. Because the bond is considered relatively low risk, the same low rate is offered to all contractors operating in the city, regardless of their credit history.
How Much Does the Sheridan Contractor License Bond Cost?
The Sheridan Contractor License bond costs just $100 per year or $10 per month.
Who is Required to Purchase a Bond?
Sheridan requires contractors and subcontractors to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Sheridan Municipal Code 7-1.1, a contractor is a person that provides construction services 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 Contractors Apply for a License in Sheridan?
Contractors in Sheridan 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 Sheridan Contractor Licenses expire one year from the date of issuance and must be renewed before the expiration date
Step 1 – Meet the Experience Requirements
Sheridan requires contractors to accumulate a certain amount of relevant experience before applying for a license. The below table illustrates the experience requirements for each contractor classification:
Table 2
| Contractor Classification | Bond Amount |
|---|---|
| General | 2 years as a journeyman |
| Plumbing | 2 years as a journeyman |
| HVAC | 2 years as a journeyman |
| Fire Sprinkler | 2 years as a journeyman |
| Electrical | 2 years as a journeyman |
| Electrical (low voltage) | 2 years as a journeyman |
| Electrical (limited) | 2 years as a journeyman |
| Structural Concrete | 4 years |
| Roofing | 4 years |
| Masonry | 4 years |
| Drywall Subcontractor | 4 years |
| Siding/Gazing | 2 years |
| Plastering/Acoustical | 2 years |
| Sign/Solar | 2 years |
| Excavator | 2 years |
| Utility | 2 years |
Step 2 – Purchase a Surety Bond
Contractors must purchase and maintain a surety bond (limits outlined in Table 1)
Step 3 – Purchase Insurance
Contractors are required to purchase public liability insurance with a minimum limit of $1 million
Step 4 – Complete the Application
All Sheridan Contractor License applications should be completed online here. Contractors must complete the application in its entirety, and pay a $200 application fee.
Step 5 – Pass the Exam
After submitting their license application, contractors will have to pass an exam based on their classification. The Building Department will provide instructions on how to schedule the exam.
How do Sheridan Contractors Renew Their Business Licenses?
Contractors can submit their renewal applications, including a $200 fee, online here. All Sheridan Contractor Licenses expire one year from the date of issuance and must be renewed before the expiration date.
What are the Insurance Requirements for Contractors in Sheridan?
Sheridan requires contractors to obtain $1 million worth of public liability insurance. Contractors must purchase and maintain a surety bond.
How Do Sheridan Contractors File Their Bonds?
Contractors should submit their completed bond forms, including the power of attorney, online here. 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 Sheridan Contractors do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, contractors in Sheridan must adhere to all licensing regulations in the city, including some of the most important issues below that tend to cause claims:
- Do not engage in any acts of fraud
- Do not breach any contracts made with consumers
- Provide all services that have been paid for
What Other Insurance Products Can Agents Offer Contractors in Sheridan?
Sheridan requires 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 Sheridan Contractor Customers?
Sheridan unfortunately does not provide a public database listing active contractors in the city. We suggest contacting the building department directly to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.