District of Columbia Plumbing/Gas Fitting Contractor Bond: A Comprehensive Guide
This guide provides information for insurance agents to help contractors on District of Columbia (Washington D.C) Plumbing/Gas Fitting bonds
At a Glance:
- Lowest Cost: $175 for the required two-year period or $9 per month
- Bond Amount: $5,000
- Who Needs It: All plumbing/gas fitting contractors operating in the District of Columbia
- Purpose: To ensure the public will receive compensation for any damages should the plumbing/gas fitting contractor fail to comply with licensing law
- Who Regulates Plumbing/Gas Fitting Contractors in the District of Columbia: The District of Columbia Department of Consumer and Regulatory Affairs (DCRA)
***This page focuses exclusively on the bond and permit requirements for the Plumbing/Gas Fitting Contractor Bond. For information on a Master Plumber/Gas Fitter Bond and License, view our Master Plumber/Gas Fitters Bond page.***
Background
Code of the District of Columbia 2-136 requires all plumbing/gas fitting contractors operating in the District to obtain a permit with the DCRA. The District of Columbia legislature enacted licensing laws and regulations to ensure that plumbing/gas fitting contractors engage in ethical business practices.
In order to provide financial security for the enforcement of the permit law, plumbing/gas fitting contractors must purchase and maintain a $5,000 plumbing/gas fitting contractor surety bond to be eligible for licensure. The bond must expire on March 31st of each even year (2020, 2022, 2024, etc).
What is the Purpose of the DC Plumbing/Gas Fitting Contractor Bond?
The District of Columbia requires plumbing/gas fitting contractors to purchase the Plumbing/Gas Fitting Contractor Bond as part of the application process for the Plumbing/Gas Fitting permit. The bond ensures that the public will receive compensation for financial harm if the plumbing/gas fitting contractor fails to comply with the licensing regulations. In short, the bond is a type of insurance that protects the public if the plumbing/gas fitting contractor breaks licensing laws.
How Can an Insurance Agent Obtain a DC Plumbing/Gas Fitting Contractor Surety Bond?
BondExchange makes obtaining a Washington D.C. Plumbing/Gas Fitting Contractor 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.
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Is a Credit Check Required for the Plumbing/Gas Fitting Contractor Bond?
Credit checks are not required for the DC Plumbing/Gas Fitter Contractor bond.
How Much Does the District of Columbia Plumbing/Gas Fitting Contractor Bond Cost?
The $5,000 DC Plumbing/Gas Fitting Contractor surety bond costs either $175 for the required two-year period or $9 per month.
How Does the District of Columbia Define “Plumbing/Gas Fitting Contractor”?
The District of Columbia differentiates between a plumbing/gas fitting contractor and a master plumber/gas fitter. The contractor is the actual business entity that employs licensed plumbers/gas fitters. Each plumbing/gas fitting contractor must employ at least one licensed master plumber/gas fitter. The contracting company will need to obtain a plumbing and gas permit with the DCRA for each project to conduct business operations.
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 and Gas Fitters Apply for a Permit in Washington D.C.?
Contractors in D.C. must navigate several steps to secure a plumbing/gas fitting permit. Below are the general guidelines, but plumbing/gas fitting contractors should refer to the permitting statutes for details on the process.
Step 1 – Obtain a Business License
All businesses operating in the District of Columbia must obtain a Basic Business License. Contractors can apply for a basic business license here.
Step 2 – Obtain a Master License
Plumbing/gas fitting contractor companies must employ at least one licensed master plumber/gas fitter to be eligible for a permit. Contractors can view our Master Plumber/Gas Fitter Bond page for details on the licensing process.
Step 3 – Purchase a Surety Bond
Plumbing/gas fitting contractors must purchase and maintain a $5,000 Plumbing/Gas Fitting Contractor surety bond in order to pull plumbing permits with the DCRA. The bond must expire on March 31st of each even-numbered year (2020, 2022, etc).
Step 4 – Complete the Permit Application
The DC plumbing and gas permit application can be completed online through the DCRA’s permit portal. The permit application process is pretty straightforward, contractors should make sure that their application is submitted by a licensed master plumber/gas fitter in their employ.
Step 5 – Pay Fees
Contractors will need to pay a $26 fee for the initial plumbing fixture that is installed, repaired, or replaced, and a $20 fee per additional fixture.
How Do DC Plumbing/Gas Fitting Contractors File Their Bond With The DCRA?
Plumbing/gas fitting contractors should scan the completed bond form and submit it online through the DCRA’s licensing portal. The plumbing/gas fitting contractor bond requires 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:
- The legal name of entity/individual(s) buying the bond
- Surety company’s name
- Bond amount
- Date the bond is signed
- Effective Date
- Year of Expiration (March 31st of even years)
- Two witness signatures for the licensee
How Can DC Plumbing and Gas Fitting Contractors Avoid Bond Claims?
To avoid claims on the Plumbing/Gas Fitting Contractor Bond, contractors must follow all license and permit regulations in the state, including some of the most important issues below that, tend to cause claims:
- Do not engage, or allow representatives of the business to engage, in any acts of fraud
- Repair all property damage caused through the course of work
What Other Insurance Products Can Agents Offer Contractors in Washington DC?
DC does not require plumbing/gas fitting contractors to obtain any form of liability insurance. Most reputable plumbers/gas fitters will seek to obtain liability insurance anyway. Bonds are our only business at BondExchange, so we do not issue any form 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 DC Plumbing and Gas Fitting Contractors?
The District of Columbia conveniently provides a public database to search for active master plumbers/gas fitters in the state. The database can be accessed here. Contact BondExchange for additional marketing resources.
What other Contractor License Bonds are Required in Washington DC?
Contractors in DC will need to obtain specific bonds correlating with their license type. Below are all the different contractor licensing bonds required by the District of Columbia:
