Torrington Contractor License Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Torrington Contractor License Bond
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: Either $1,000 or $5,000 (more on this later)
- Who Needs it: Certain contractors operating in the city of Torrington, Wyoming
- Purpose: To ensure the public will receive compensation for any damages should the contractor violate licensing law
- Who Regulates Contractors in Torrington: The Torrington Building Department
Background
Torrington Municipal Code 5.25.010 requires all contractors operating in the city to obtain a business license. The Torrington 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, certain contractors must purchase and maintain a surety bond to be eligible for licensure.
What is the Purpose of the Torrington Contractor License Bond?
Torrington 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 Torrington Municipal Code 5.24. 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 Torrington Contractor License Surety Bond?
BondExchange makes obtaining a Torrington 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?
Torrington Municipal Code 5.24.050 outlines the required bond amount for each contractor classification, as outlined in the below table.
Table 1
| Contractor Classification | Bond Amount |
|---|---|
| General | $1,000 |
| Residential | $1,000 |
| Plumbing | $1,000 |
| Fire Suppression | $1,000 |
| Gas Fitter | $1,000 |
| HVAC | $1,000 |
| Refrigeration | $1,000 |
| General Roof | $1,000 |
| Electrical | $1,000 |
| Demolition | $1,000 |
| Spraying | $1,000 |
| Digging and Grading | $1,000 |
| Arborist | $5,000 |
Is a Credit Check Required for the Torrington Contractor License Bond?
No, a credit check is not required for the Torrington 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 Torrington Contractor License Bond Cost?
The Torrington Contractor License bond costs just $100 per year or $10 per month.
Who is Required to Purchase a Bond?
Torrington requires all contractor classifications outlined in Table 1 to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Torrington Municipal Code 5.25.040, 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 Torrington?
*This section focuses exclusively on the application process for the contractor classifications listed in Table 1. To learn more about the licensing requirements for contractors not mentioned in this article, contact the city directly.
Contractors in Torrington 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 Torrington Contractor Licenses expire on December 31 of each year and must be renewed before the expiration date
Step 1 – Meet the Experience Requirements
Torrington requires certain contractors to accumulate a certain amount of relevant experience before applying for licensure, as referenced in the below table:
Table 2
| Contractor Classification | Bond Amount |
|---|---|
| General | 8 years |
| Residential | 4 years |
| Fire Suppression | 4 years |
| Generall Roof | 4 years |
| Electrical | Must obtain a Wyoming Electrical Contractor License |
| Digging and Grading | 4 years |
| Arborist | 2 years |
If your customer’s classification is not listed in the above table, then they do not need to satisfy any experience requirements.
Step 2 – Purchase a Surety Bond
Contractors must purchase and maintain a surety bond (see Table 1 for limits)
Step 3 – Purchase Insurance
Torrington requires the following contractor classifications to purchase liability insurance before submitting a license application:
Table 3
| Contractor Classification | Bond Amount |
|---|---|
| General | $1 million |
| Residential | $300,000 |
| Plumbing | $250,000 |
| Fire Suppression | $250,000 |
| Gas Fitter | $250,000 |
| HVAC | $250,000 |
| Refrigeration | $250,000 |
| General Roof | $250,000 |
| Electrical | $250,000 |
| Demolition | $250,000 |
| Spraying | $100,000 |
| Digging and Grading | $250,000 |
| Arborist | $250,000 |
Step 3 – Complete the Application
All Torrington Contractor License applications should be completed online here. Contractors must complete the application in its entirety, and pay all required fees.
How do Torrington Contractors Renew Their Business Licenses?
Contractors can renew their business licenses online here. All Torrington Contractor Licenses expire on December 31 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Contractors in Torrington?
Torrington requires certain contractors to purchase liability insurance (see Table 3 for limits). Certain contractor classifications must purchase and maintain a surety bond (Table 1).
How Do Torrington Contractors File Their Bonds?
Contractors should mail their completed bond forms, including the power of attorney, to the following address:
436 E 22nd Avenue
P.O. Box 250
Torrington, WY 82240
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 Torrington Contractors do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, contractors in Torrington must adhere to all license 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 Torrington?
Torrington requires certain contractors to purchase 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 Torrington Contractor Customers?
Torrington unfortunately does not provide a list of active contractors operating in the city. We suggest contacting the city directly to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.