Winston-Salem Plumbing Contractor Bond: A Comprehensive Guide

June 15, 2022

Winston-Salem Insulation Contractor Bond

This guide provides information for insurance agents to help their customers obtain a Winston-Salem Plumbing Contractor bond

At a Glance:

  • Average Cost: $100 per year
  • Bond Amount: $2,500
  • Who Needs it: All plumbing contractors operating in Winston-Salem, North Carolina
  • Purpose: To ensure the city will receive compensation for financial harm if the contractor does not faithfully perform all of their duties
  • Who Regulates Plumbing Contractors in Winston-Salem: The Winston-Salem Inspection Division

Background

Winston-Salem Code of Ordinances 10-163 requires all plumbing 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 plumbing contractors engage in ethical business practices. To provide financial security for the enforcement of the permitting requirement, plumbing contractors must purchase a $2,500 surety bond to be eligible for a permit.

What is the Purpose of the Winston-Salem Plumbing Contractor Bond?

Winston-Salem requires plumbing contractors to purchase a surety bond as part of the application process to obtain a plumbing 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 10-164. Specifically, the bond protects the public if the contractor damages the city’s water/sewer system or fails to pay all required fees. In short, the bond is a type of insurance that protects the public if the plumbing contractor violates the terms of their permit.

Winston-Salem Plumbing Contractor Bond Form

Winston-Salem Plumbing Contractor Bond Form

How Can an Insurance Agent Obtain a Mountain Brook Plumbing Contractor Surety Bond?

BondExchange makes obtaining a Mountain Brook Plumbing Contractor bond easy. Simply log in to your account and use our keyword search to find the “Mountain Brook” 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 Plumbing Contractor Bond?

No, a credit check is not required the Winston-Salem Plumbing Contractor bond. Because the bond is considered relatively low risk, the same low rate is offered to all plumbing contractors in Winston-Salem regardless of their credit history.

How Much Does the Winston-Salem Plumbing Contractor Bond Cost?

The Winston-Salem Plumbing Contractor bond costs just $100 per year.

Who is Required to Purchase the Bond?

Winston-Salem requires plumbing contractors to purchase a surety bond as a prerequisite to obtaining a permit. To paraphrase North Carolina Statute 87-21, a plumbing contractor is a person that, as an independent business, installs or repairs pipes and fixtures that serve to supply water to and transfer sewage from a building.

How do Plumbing Contractors Apply For a Permit in Winston-Salem?

Plumbing contractors in Winston-Salem must navigate several steps to obtain a permit. Below are the general guidelines, but contractors should contact the city’s permit office at 336-727-2624 for details on the process.

Step 1 – Obtain a State License

North Carolina requires plumbing contractors to obtain a statewide license before accepting jobs. To obtain a plumbing 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:

    • Have at least 4,000 hours of relevant experience
    • Purchase the required books
    • Submit a completed exam application, including all required fees, online here
    • Mail required notarized documents to the following address:

State Board of Examiners of Plumbing
Heating and Fire Sprinkler Contractors
1109 Dresser Court
Raleigh, NC 27609-7302

Step 2 – Purchase a Surety Bond

Plumbing contractors must purchase and maintain a $2,500 surety bond

Step 3 – Complete the Application

Contractors can apply for a Winston-Salem Plumbing 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.

Do Plumbing Contractors in Winston-Salem Need to Renew Their Permits?

No, plumbing 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 Plumbing Contractors Renew Their North Carolina State Licenses?

Plumbing contractors can renew their licenses online here. All North Carolina Plumbing Contractor licenses expire annually and must be renewed before the expiration date.

What are the Insurance Requirements for Plumbing Contractors in Winston-Salem?

Winston-Salem does not require plumbing contractors to purchase any form of liability insurance as a prerequisite to obtaining a plumbing permit. However, most reputable contractors will purchase this insurance anyway. Plumbing contractors must purchase a $2,500 surety bond.

How Do Winston-Salem Plumbing Contractors File Their Bonds?

Contractors should submit their completed bond forms, including the power of attorney, to the following address:

City of Winston-Salem
Inspections Division
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 Plumbing Contractors Do To Avoid Claims Against Their Bonds?

To avoid claims on their bonds, plumbing 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 water/sewer systems
  • Pay all required fees

What Other Insurance Products Can Agents Offer Winston-Salem Plumbing Contractors?

Most reputable plumbing 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 Plumbing Contractor Customers?

Winston-Salem provides a public database of past and present plumbing permits issued in the city. We also suggest contacting the Inspections Division for a list of active plumbing contractors operating in the city. Additionally, North Carolina provides a public database of active plumbing contractors in the state. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

2022-07-06T16:45:23-04:00