Henderson Municipal License Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Henderson Municipal License bond
At a Glance:
- Lowest Cost: Either 0.5% of the bond amount or $100 per year, whichever is greater
- Bond Amount: Based on the type of license or permit being applied for
- Who Needs it: Persons applying for certain types of licenses or permits in Henderson, North Carolina
- Purpose: To ensure the public will receive compensation for financial harm if the bondholder violates the terms of their license or permit
- Who Requires the Bond: The City of Henderson
Background
The Henderson Code of Ordinances individuals and businesses to purchase and maintain a surety bond before being issued certain types of licenses and permits. The Henderson City Council enacted the bonding requirements to ensure that the city, and its residents, are financially protected if a bondholder engages in unethical business practices. The following licenses and permits have a surety bond requirement in Henderson:
Table 1
| License/Permit Type | Bond Amount |
|---|---|
| Pawnbroker | $5,000 |
| Precious Metal Dealer | $10,000 |
| *Contractor License | $1,000 |
| *Contractor Performance | Varies |
| Demolition | Determined on a case by case basis |
| Moving | $10,000 |
| Pump station | Equal to the cost of constructing the station |
| Erecting poles | Determined on a case by case basis |
| Exotic Animal Display | $10,000 |
| Fire Line Installation (No Meter) | $15,000 |
| Stormwater | Determined on a case by case basis |
| Subdivision | Determined on a case by case basis |
*Contractor License and Performance bonds are only required in certain situations. The city will inform your contractor customers of whether or not they need a bond before issuing them a license or permit.
What is the Purpose of the Henderson Municipal License Bond?
Henderson requires individuals and businesses to purchase a surety bond as part of the application process to obtain any of the licenses or permits outlined in Table 1. The bond ensures that the city will receive compensation for financial harm if the bondholder fails to abide by the regulations outlined in the Henderson Code of Ordinances. Specifically, the bond protects the city if the bondholder violates the city’s health and fire ordinances, is negligent in their work, or uses defective materials (contractors). In short, the bond is a type of insurance that protects the city if the bondholder violates the terms of their license or permit.
How Can an Insurance Agent Obtain a Henderson Municipal License Surety Bond?
BondExchange makes obtaining a Henderson Municipal License bond easy. Simply log in to your account and use our keyword search to find the “Henderson” 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 Henderson Municipal License Bond?
No, a credit check is not required for the Henderson Municipal License bond. Because the bond is considered relatively low risk, the same low rate is offered to all individuals and businesses in Henderson, regardless of their credit history.
How Much Does the Henderson Municipal License Bond Cost?
The Henderson Municipal License bond costs just $100 per year or $10 per month.
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.
What is the Application Process for a License or Permit in Henderson?
Your customers must navigate several steps to obtain a license or permit in Henderson. Below are the general guidelines, but your customers should refer to the city’s Code of Ordinances for details on the process.
Step 1 – Contact the City
Before applying for a license, your customers should contact the city at (252) 430-5700. Your customers will be transferred to the correct department in charge of issuing their required license or permit and will receive instructions on how to navigate the application process, including information regarding all required documents and fees that must be submitted.
Step 2 – Purchase a Surety Bond
Your customers must purchase and maintain a surety bond if they are applying for any license or permit specified in Table 1
How Do Your Customers Renew Their Henderson Licenses and Permits?
To renew their Henderson licenses and permits, your customers should contact the city at (252) 430-5700. However, most permits are not eligible for renewal and will expire once their purpose has been fulfilled.
How Do Your Customers File Their Henderson Municipal License Bonds?
Your customers should submit their completed bond forms, including the power of attorney, to the following address:
134 Rose Ave.
Henderson, NC 27536
The surety bond requires signatures from both the surety company that issues the bond and from your customer. The surety company should include the following information on the bond form:
- Legal name of entity/individual(s) buying the bond
- Surety company’s name
- Bond amount
- Type of license/permit being applied for
- Date the bond is signed
What Can Your Customers Do to Avoid Claims Against Their Henderson Municipal License Bonds?
To avoid claims on their bonds, license/permit holders in Henderson must ensure that they adhere to all regulations outlined in the city’s Code of Ordinances, including some of the most important issues below that tend to cause claims:
- Do not violate any of the city’s health and fire ordinances
- Do not be negligent
- Do not use defective materials (contractors)
What Other Insurance Products Can Agents Offer Businesses in Henderson?
Most reputable businesses 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 Customers for the Henderson Municipal License Bond?
Henderson unfortunately does not provide a public database of active license and permit holders in the city We suggest contacting the city to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
