Winston-Salem Electrical Contractor Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Winston-Salem Electrical Contractor bond
*Important Note: Electrical contractors operating in North Carolina are required to obtain a state license from the North Carolina Board of Examiners of Electrical Contractors and purchase a statement of bonding ability. This page focuses on the local bond requirement for electrical contractors in Winston-Salem. To learn more about the North Carolina Statement of Bonding Ability, click here.
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: $2,500
- Who Needs it: Electrical contractors operating in Winston-Salem, North Carolina that are billed for their permits on a monthly basis
- Purpose: To ensure the city will receive compensation for financial harm if the contractor does not faithfully perform all of their duties
- Who Regulates Electrical Contractors in Winston-Salem: The Winston-Salem Inspections Division
Winston-Salem Code of Ordinances 10-242 requires all electrical contractors operating in the city to obtain a permit with the Inspections Division before beginning work on a job. The Winston-Salem City Council enacted the permit requirement to ensure that electrical contractors engage in ethical business practices. To provide financial security for the enforcement of the permitting requirement, electrical contractors that choose to be billed monthly for their permits, as opposed to paying daily inspection fees, must purchase a $2,500 surety bond to be eligible for a permit.
What is the Purpose of the Winston-Salem Electrical Contractor Bond?
Winston-Salem requires electrical contractors that are billed monthly for their permits to purchase a surety bond as part of the application process to obtain an electrical permit. The bond ensures that the public will receive compensation for financial harm if the contractor fails to abide by the regulations outlined in Winston-Salem Code of Ordinances 10-243. Specifically, the bond protects the public if the contractor damages public property or fails to pay all required fees. In short, the bond is a type of insurance that protects the public if the electrical contractor violates the terms of their permits.
How Can an Insurance Agent Obtain a Winston-Salem Electrical Contractor Surety Bond?
BondExchange makes obtaining a Winston-Salem Electrical Contractor bond easy. Simply log in to your account and use our keyword search to find the “Electrical” 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.
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 Winston-Salem Electrical Contractor Bond?
No, a credit check is not required the Winston-Salem Electrical Contractor bond. Because the bond is considered relatively low risk, the same low rate is offered to all electrical contractors in Winston-Salem regardless of their credit history.
How Much Does the Winston-Salem Electrical Contractor Bond Cost?
The Winston-Salem Electrical Contractor bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Winston-Salem requires electrical contractors that choose to be billed for their permits on a monthly basis, as opposed to paying daily inspection fees, to purchase a surety bond as a prerequisite to obtaining a permit.
North Carolina Statute 87-43 defines an electrical contractor as any individual or business entity who engages or offers to engage in “the business of installing, maintaining, altering or repairing any electric work, wiring, devices, appliances or equipment” as an independent business.
Exemptions to the permit requirement include:
- Minor repair work
- Electrical work performed by an electrical public-service corporation
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 Electrical Contractors Apply For a Permit in Winston-Salem?
Electrical contractors in Winston-Salem must navigate several steps to obtain a permit. Below are the general guidelines, but contractors should refer to the permitting statutes for details on the process.
Step 1 – Obtain a State License
North Carolina requires electrical contractors to obtain a statewide license from the North Carolina Board of Examiners of Electrical Contractors. To obtain a state license, contractors must:
For more information on how to obtain a North Carolina Electrical Contractor License, check out our NC Statement of Bonding Ability page.
Step 2 – Purchase a Surety Bond
Electrical contractors that are billed for their permits on a monthly basis must purchase and maintain a $2,500 surety bond.
Step 3 – Complete the Application
Contractors can apply for a Winston-Salem Electrical Permit either online through the BuildIT online permitting system or over the phone by calling 336-727-2624. Contractors must complete the permit application in its entirety, and pay all required fees. The city electrical inspector will inspect the site before issuing the contractor a permit.
Do Electrical Contractors in Winston-Salem Need to Renew Their Permits?
No, electrical contractors in Winston-Salem do not need to renew their permits. However, contractors must apply for a new permit for each job they undertake.
How do Electrical Contractors Renew Their North Carolina State License?
Electrical contractors can renew their licenses online here. Additionally, the contractor’s qualified individual must complete a continuing education course each renewal period. The North Carolina electrical contractor license is valid for one year from the date of issuance and must be renewed before the expiration date.
What are the Insurance Requirements for Electrical Contractors in Winston-Salem?
Winston-Salem does not require electrical contractors to purchase any form of liability insurance as a prerequisite to obtaining a permit. However, most reputable contractors will purchase this insurance anyway. Electrical contractors that are billed on a monthly basis for their permits must purchase a $2,500 surety bond.
How Do Winston-Salem Electrical Contractors File Their Bonds?
Contractors should submit their completed bond forms, including the power of attorney, to the following address:
City of Winston-Salem
100 E. First Street, Suite 328
Winston-Salem, N.C. 27101
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, state of incorporation, and city where their principal office is located
- Date the bond is signed
What Can Winston-Salem Electrical Contractors Do To Avoid Claims Against Their Bonds?
To avoid claims on their bonds, electrical contractors in Winston-Salem must adhere to the terms of their permits, including some of the most important issues below that tend to cause claims:
- Perform adequate work
- Repair all damage caused to city infrastructure
- Pay all required fees
What Other Insurance Products Can Agents Offer Winston-Salem Electrical Contractors?
Most reputable electrical 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 Winston-Salem Electrical Contractor Customers?
Winston-Salem provides a public database of past and present electrical permits in the city. We also suggest contacting the Inspections Division for a list of active electrical contractors operating in the city. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.