Winston-Salem HVAC Contractor Bond: A Comprehensive Guide
June 14, 2022
This guide provides information for insurance agents to help their customers obtain a Winston-Salem HVAC Contractor bond.
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $2,500
- Who Needs it: Heating, air conditioning, ventilation, and refrigeration (HVAC) 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 HVAC Contractors in Winston-Salem: The Winston-Salem Inspections Division
Winston-Salem Code of Ordinances 10-91 requires all HVAC 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 HVAC contractors engage in ethical business practices. To provide financial security for the enforcement of the permitting requirement, HVAC 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 HVAC Contractor Bond?
Winston-Salem requires HVAC contractors that are billed monthly for their permits to purchase a surety bond as part of the application process to obtain a mechanical 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 10-95. 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 HVAC contractor violates the terms of their permits.
How Can an Insurance Agent Obtain a Winston-Salem HVAC Contractor Surety Bond?
BondExchange makes obtaining a Winston-Salem Contractor Contractor bond easy. Simply log in 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 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 HVAC Contractor Bond?
No, a credit check is not required the Winston-Salem HVAC Contractor bond. Because the bond is considered relatively low risk, the same low rate is offered to all HVAC contractors in Winston-Salem regardless of their credit history.
How Much Does the Winston-Salem HVAC Contractor Bond Cost?
The Winston-Salem HVAC Contractor bond costs just $100 per year.
Who is Required to Purchase the Bond?
Winston-Salem requires HVAC 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.
To paraphrase Winston-Salem Code of Ordinances 10-63, an HVAC contractor is a person that, as in independent business, installs, alters, or repairs any ventilating, heating, cooling, air conditioning, and/or refrigeration systems.
How do HVAC Contractors Apply For a Permit in Winston-Salem?
HVAC 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 HVAC contractors to obtain a statewide license before accepting jobs. To obtain an HVAC contractor license, contractors must apply through the North Carolina State Board of Examiners of Plumbing, Heating and Fire Sprinkler Contractors.
To be eligible for licensure, contractors must:
State Board of Examiners of Plumbing
Heating and Fire Sprinkler Contractors
1109 Dresser Court
Raleigh, NC 27609-7302
- Pass the exam
Contractors seeking to perform refrigeration work must obtain a license from the North Carolina State Board of Refrigeration Contractors and can do so by mailing an exam application to the following address:
State Board of Refrigeration Examiners
1027 US Highway 70 West, Suite 221
Garner, North Carolina 27529
Contractors must pass the required exam once their application has been approved.
Step 2 – Purchase a Surety Bond
HVAC contractors that are billed monthly for their permits must purchase and maintain a $2,500 surety bond
Step 3 – Complete the Application
Contractors can apply for a Winston-Salem Mechanical 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.
Depending on the type of work to be performed, contractors may need to submit detailed drawings and specifications of the project to the city’s Mechanical Inspector before being issued a permit. Contractors will be notified if they are required to submit these items.
Do HVAC Contractors in Winston-Salem Need to Renew Their Permits?
No, HVAC 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 HVAC Contractors Renew Their North Carolina State Licenses?
HVAC contractors can renew their licenses online here. Contractors that perform refrigeration work will be mailed a renewal application containing instructions on how to complete the renewal process. All North Carolina HVAC and Refrigeration Contractor licenses expire annually and must be renewed before the expiration date.
What are the Insurance Requirements for HVAC Contractors in Winston-Salem?
Winston-Salem does not require HVAC contractors to purchase any form of liability insurance as a prerequisite to obtaining a mechanical permit. However, most reputable contractors will purchase this insurance anyway. HVAC contractors that are billed on a monthly basis for their permits must purchase a $2,500 surety bond.
How Do Winston-Salem HVAC 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 HVAC Contractors Do To Avoid Claims Against Their Bonds?
To avoid claims on their bonds, HVAC 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 HVAC Contractors?
Most reputable HVAC 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 HVAC Contractor Customers?
Winston-Salem provides a public database of past and present mechanical permits in the city. We also suggest contacting the Inspections Division for a list of active mechanical contractors operating in the city. Additionally, North Carolina provides public databases of all HVAC and refrigeration contractors in the state. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.