Dothan Plumbing Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Dothan Plumbing bond
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: $5,000
- Who Needs it: All plumbing contractors operating in Dothan, Alabama
- Purpose: To ensure the public will receive compensation for any damages should the contractor violate licensing law
- Who Requires the Bond: The City of Dothan
Background
Dothan Municipal Code Sec. 14-91 requires all plumbing contractors operating in the city to obtain a business license. The Dothan City Council enacted the licensing laws and regulations to ensure that plumbing contractors engage in ethical business practices. To provide financial security for the enforcement of the licensing law, plumbing contractors must purchase and maintain a $5,000 surety bond to be eligible for licensure.
What is the Purpose of the Dothan Plumbing Bond?
Dothan requires plumbing 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 Dothan Municipal Code Sec. 14-41. Specifically, the bond protects the public in the event the plumbing contractor engages in any acts of fraud or fails to return land altered throughout the course of a project to a safe condition. In short, the bond is a type of insurance that protects the public if the contractor breaks licensing laws.
How Can an Insurance Agent Obtain a Dothan Plumbing Surety Bond?
BondExchange makes obtaining a Dothan Plumbing bond easy. Simply log in to your account and use our keyword search to find the “Dothan” 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 Dothan Plumbing Bond?
No, a credit check is not required for the Dothan Plumbing bond. Because the bond is considered relatively low risk, the same low rate is offered to all plumbing contractors in Dothan, regardless of their credit history.
How Much Does the Dothan Plumbing Bond Cost?
The Dothan Plumbing bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Dothan requires plumbing contractors to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Alabama Statute 34-37-1, a plumbing contractor is a person that, as an independent business, installs or repairs pipes and fixtures that supply water and transport sewage.
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 Plumbers Apply for a License in Dothan?
Plumbing contractors in Dothan must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the city’s licensing page as well as the licensing statutes for details on the process.
License Period – All Dothan Business Licenses expire annually and must be renewed before the expiration date
Step 1 – Obtain a State License
All plumbing contractors operating in Alabama must register their business with the Plumbers and Gas Fitters Board. To apply for registration, contractors must mail a completed application form, including a $25 fee, to the following address:
State of Alabama
Alabama Plumbers And Gas Fitters Examining Board
216 Aquarius Dr., Suite 319
Homewood, Al 35209
Contractors must employ at least one licensed master plumber. To obtain master certification, contractors should their completed application, including fees totaling $225, to the above address as well as pass the required exam.
Plumbers that wish to install fire sprinklers within Dothan must obtain a separate certification from the State Fire Marshal.
Dothan requires either a certified master or journeyman plumber to be present whenever plumbing work is being done.
Step 2 – Purchase a Surety Bond
Plumbing contractors must purchase and maintain a $5,000 surety bond. Contractors that wish to install fire sprinkler systems must purchase an additional $5,000 bond.
Step 3 – Complete the Application
Plumbing contractors are eligible to apply for a Dothan Business License after purchasing a surety bond and obtaining a state registration. All Dothan Business License applications should be completed online or mailed to the following address:
City of Dothan
P.O. BOX 2128
Dothan, AL 36302
How Do Dothan Plumbers Renew Their Local License and State Registration?
Plumbing contractors can renew their local business license online or in person at the Customer Service Center, which is located on the first floor of the Dothan Civic Center. Additionally, contractors can renew their state registrations, issued through the Plumbers and Gas Fitters Board, online here. All local licenses and state plumbing certifications expire annually and must be renewed before the expiration date.
Do Dothan Plumbing Contractors Need to Obtain a Permit?
Yes, plumbing contractors must obtain a permit before beginning work on a project. To obtain a plumbing permit, plumbers must submit an application online here. Plumbing contractors do not need to renew their plumbing permits, as they are valid for the duration of the project. However, contractors must obtain a new permit for each project they undertake.
Plumbers installing fire sprinkler systems must complete a separate permit application and submit it to the city’s planning department in the 1st Floor Lobby of the Dothan Civic Center.
What are the Insurance Requirements for Plumbing Contractors in Dothan?
Dothan requires plumbing contractors that install fire sprinklers to purchase liability insurance with a minimum limit of $1 million as well as errors and omissions and/or professional liability coverage. Plumbing contractors must purchase and maintain a $5,000 surety bond. Contractors that wish to install fire sprinkler systems must purchase an additional $5,000 bond.
How Do Dothan Plumbers File Their Bonds?
Plumbing contractors should submit their completed bonds form, including the power of attorney, to the following address:
City of Dothan
P.O. BOX 2128
Dothan, AL 36302
The 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 address of entity/individual(s) buying the bond
- Surety company’s name
- Date the bond is signed
What Can Dothan Plumbing Contractors Do to Avoid Claims Against Their Bonds?
To avoid claims on their bonds, plumbing contractors in Dothan must follow all license regulations in the city, including some of the most critical issues below that tend to cause claim
- Do not engage in any acts of fraud
- Return land altered throughout the course of a project to a safe condition
- Ensure the safe conditions of all altered land for a period of 1 year after the completion of a project
- Replace any excavated soil
What Other Insurance Products Can Agents Offer Plumbers in Dothan?
Dothan requires plumbing contractors that install fire sprinklers to purchase liability insurance as well as E&O and/or professional liability coverage as a prerequisite to obtaining a business license. Bonds are our only business at BondExchange, so we do not issue liability 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 Dothan Plumbing Contractor Customers?
Alabama conveniently provides a public database to search for active plumbers in the state. We also suggest contacting Dothan directly for a list of plumbing contractors in the city. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
