Greensboro Contractor Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Greensboro Contractor bond
At a Glance:
- Average Cost: $100 per year
- Bond Amount: Based on the type of work the contractor performs
Table 1
| Contractor Type | Bond Amount |
|---|---|
|
$2,000 |
|
$5,000 |
- Who Needs it: Contractors applying for a permit in Greensboro, North Carolina
- Purpose: To ensure the public will receive compensation for financial harm if the contractor violates the terms of their permit
- Who Regulates Contractors in Greensboro: The Greensboro Development Services Division
Background
Greensboro Municipal Code Chapter 6 requires all contractors operating in the city to obtain a permit from the Development Services Division before beginning work on any project. The Greensboro city council enacted the permit requirement to ensure that contractors engage in ethical business practices. To provide financial security for the enforcement of the permit requirement, contractors must purchase and maintain a surety bond to be eligible for a permit.
What is the Purpose of the Greensboro Contractor Bond?
Greensboro requires contractors to purchase a surety bond as part of the application process to obtain a permit. The bond ensures that the public will receive compensation for financial harm if the contractor fails to abide by the regulations outlined in Greensboro Municipal Code 6-4. Specifically, the bond protects the public if the contractor fails to pay all requires fees or violates any contracts made with consumers. In short, the bond is a type of insurance that protects the public if the contractor violates the terms of their permit.
How Can an Insurance Agent Obtain a Greensboro Contractor Surety Bond?
BondExchange makes obtaining a Greensboro Contractor bond easy. Simply log in to your account and use our keyword search to find the “Greensboro” 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 Greensboro Contractor Bond?
No, a credit check is not required for the Greensboro Contractor bond. Because the bond is considered relatively low risk, the same low rate is offered to all contractors in Greensboro regardless of their credit history.
How Much Does the Greensboro Contractor Bond Cost?
The Greensboro contractor bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Greensboro requires the following types of contractors to purchase a surety bond as a prerequisite to obtaining a permit:
- Electrical
- Plumbing
- Heating
- Air conditioning
- Mechanical
- Refrigeration
- HVAC
- Concrete
- Demolition
- Grading
- House moving
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 Contractors Apply for a Permit in Greensboro?
Contractors in Greensboro must navigate several steps to obtain a permit. Below are the general guidelines, but contractors should contact the Development Services Division at (336) 373-2155 for details on the process.
Step 1 – Determine the Permit Type
Greensboro requires contractors to obtain specific permits corresponding to the type of work to be performed, as outlined below:
In some instances, the general contractor will submit one permit application to cover the whole project. In cases such as these, the bonding requirements for the subcontractors (plumbers, mechanics, etc.) do not go away, rather the subcontractors simply do not need to submit a separate permit application.
Step 2 – Purchase a Surety Bond
Contractors operating in Greensboro, North Carolina must purchase and maintain a surety bond (see Table 1 for limits)
Step 3 – Complete the Application
All Greensboro Contractor Permit applications should be mailed or delivered to the Development Services Division at the following address:
300 W. Washington St.
Greensboro, NC 27405
Information on what items must be submitted with each permit application, as well as a list of all required fees, can be found here here.
Can Contractors in Greensboro Renew Their Permits?
Electrical contractors in Greensboro have the option of either obtaining a permit for each individual project or securing one to cover all projects undertaken in a 12-month period. Electricians who choose to go with the annual permit option must renew their permits by June 30 of each year. All other contractor/building permits cannot be renewed and will expire on the date listed on the permit.
What are the Insurance Requirements for Contractors in Greensboro?
Greensboro does not require contractors to purchase any form of liability insurance as a prerequisite to obtaining a permit. However, most contractors will have to obtain insurance to become licensed. Contractors operating in Greensboro, North Carolina must purchase and maintain a surety bond (see Table 1 for limits).
How Do Greensboro Contractors File Their Bonds?
Contractors in Greensboro should submit their completed bond forms, including the power of attorney, either in person at:
Development Services Division – Room UG10
Melvin Municipal Office Building
300 West Washington Street
Greensboro, North Carolina 27401
Or by mail to the following address:
Development Services Division
Post Office Box 26118
Greensboro, North Carolina 27402-6118
The surety 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, address, and phone number
- Date the bond is signed
- Date the bond goes into effect
What Can Greensboro Contractors Do to Avoid Claims Against Their Bonds?
To avoid claims on their bonds, contractors in Greensboro must adhere to all regulations outlined in Greensboro Municipal Code 6-4, including some of the most important issues below that tend to cause claims:
- Pay all required fees
- Complete all work that has been paid for
- Do not breach any contracts made with consumers
What Other Insurance Products Can Agents Offer Contractors in Greensboro?
Most reputable Greensboro 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 Greensboro Contractor Customers?
Greensboro provides the public with a list of active building permits. We also suggest contacting the Development Services Division for information regarding specific contractors operating in the city. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
