Jackson County Erosion Control Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Jackson County Erosion Control bond
At a Glance:
- Average Cost: Between 1% to 12.5% of the bond amount based on the applicant’s credit history
- Bond Amount: Between $500 to $5,000 per disturbed acre of land (more on this later)
- Who Needs it: Developers seeking to disturb 5 or more acres of land in Jackson County, North Carolina
- Purpose: To ensure the county will receive compensation for financial harm if the developer fails to install proper erosion and sedimentation control systems
- Who Requires the Bond: The Jackson County Office of Permitting and Code Enforcement
Background
Jackson County Code of Ordinances 5.3 requires all developers performing land-disturbing activities on half an acre or more of land to obtain a permit from the Office of Permitting and Code Enforcement. The Jackson County Board of Commissioners enacted the permitting requirement to ensure that land-disturbing activities do not lead to excessive erosion and sedimentation. To provide financial security for the enforcement of the permit requirement, developers seeking to conduct land-disturbing activities on 5 or more acres of land must purchase and maintain a surety bond to be eligible for a permit.
What is the Purpose of the Jackson County Erosion Control Bond?
Jackson County requires developers conducting land-disturbing activities on 5 or more acres of land to purchase a surety bond as part of the application process to obtain a permit. The bond ensures that the county will receive compensation for financial harm if the developer fails to abide by the regulations outlined in Jackson County Code of Ordinances 5.3. Specifically, the bond protects the county if the developer does not install all required erosion and sedimentation control measures. In short, the bond is a type of insurance that protects the public if the developer violates the terms of their permit.
How Can an Insurance Agent Obtain a Jackson County Erosion Control Surety Bond?
BondExchange makes obtaining a Jackson County Erosion Control Bond easy. Simply login to your account and use our keyword search to find the “Jackson County” 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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How is the Bond Amount Determined?
Jackson County Code of Ordinances 5.3 dictates that the bond amount must range from anywhere between $500 to $5,000 per disturbed acre as determined by the county. When determining the required bond amount, the county will consider the estimated cost of installing all required erosion and sedimentation control measures.
Is a Credit Check Required for the Jackson County Erosion Control Bond?
Surety companies will run a credit check on the bond applicant to determine eligibility and pricing for the Jackson County Erosion Control bond. Applicants with excellent credit and work experience can expect to receive the best rates. Applicants with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the applicant’s credit.
How Much Does the Jackson County Erosion Control Bond Cost?
The Jackson County Erosion Control bond can cost anywhere between 1% to 12.5% of the bond amount. Insurance companies determine the rate based on several factors including your customer’s credit score and experience. The chart below offers a quick reference for the cost of a $10,000 bond requirement.
$10,000 Erosion Control Bond Cost
| Credit Score | Bond Cost (1 year) |
|---|---|
| 720+ | $100 |
| 680 – 719 | $150 |
| 650 – 679 | $200 |
| 600 – 649 | $400 |
| 550 – 599 | $750 |
| 500 – 549 | $1,250 |
*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.
Who is Required to Purchase the Bond?
Jackson County requires all developers seeking to disturb 5 or more acres of land to purchase a surety bond as a prerequisite to obtaining a permit. To paraphrase Jackson County Code of Ordinances 5-3, “land-disturbing activity” refers to any use of land that alters its natural cover or topography and contributes to acceleration erosion and sedimentation.
Exemptions to this definition include:
- Agricultural activities for the purpose of raising crops and livestock
- The harvesting of timber on forestland
- Activities authorized under the Mining Act of 1971
- Activities that the state has sole authority over
- Activities essential to save lives during an emergency
- Activities seeking to restore the wetland functions of converted wetlands
How do Developers Apply for a Jackson County Land-Disturbing Permit?
Developers must navigate several steps to obtain a Jackson County Land-Disturbing Permit. Below are the general guidelines, but applicants should refer to the permitting ordinances for details on the process.
*Important Note: Developers must obtain a permit if they plan on disturbing at least half an acre of land. However, they only need to be bonded if they will disturb 5 or more acres of land.
Permit Period – All Jackson County Land-Disturbing Permits are valid for three years from the date of issuance
Step 1 – Create an Erosion and Sedimentation Control Plan
To obtain a land-disturbing permit, developers in Jackson County must complete an erosion and sedimentation control plan detailing the actions they plan to take to ensure their land-disturbing activities do not cause excessive erosion and sedimentation. The plan must contain all relevant architectural and engineering drawings, maps, assumptions, calculations, and narrative statements needed to describe the proposed land-disturbing activity and subsequent control measures.
Plans for projects that will disturb three or more acres of land must be accompanied by a professional drawing done by a licensed or certified design professional.
Step 2 – Submit the Application
All Jackson County Land-Disturbing Permit applications should be submitted to the following address:
401 Grindstaff Cove Road, Suite 145
Sylva, North Carolina 28779
Completed applications will consist of the following items:
-
- Three copies of the erosion and sedimentation control plan
- Application form
- Financial Responsibility/Ownership form
- Environmental document (if applicable)
All applications must be accompanied by an appropriate fee, and before submitting their applications, developers should contact the Office of Permitting and Code Enforcement to calculate the required amount.
Step 3 – Purchase a Surety Bond
Developers disturbing 5 or more acres of land must purchase and maintain a surety bond in an amount set by the county.
Do Developers Need to Renew Their Jackson County Land-Disturbing Permits?
No, developers do not need to renew their Jackson County Land-Disturbing Permits. However, they do need to obtain a new permit for every project they undertake. All Jackson County Land-Disturbing Permits are valid for three years from the date of issuance.
What are the Insurance Requirements for Land-Disturbing Permits in Jackson County?
Jackson County does not require developers to purchase liability insurance as a prerequisite to obtaining a land-disturbing permit. However, developers may be required to purchase insurance before obtaining a license or building permit.
How Do Jackson County Developers File Their Erosion Control Bonds?
Developers should submit their completed bond forms, including the power of attorney, to the following address:
401 Grindstaff Cove Road, Suite 145
Sylva, North Carolina 28779
The surety bond requires signatures from both the surety company that issues the bond and the developer. The surety company should include the following information on the bond form:
- Legal name of the entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Bond amount
- Project’s name
- Date the bond is signed
What Can Jackson County Developers Do to Avoid Claims Against Their Erosion Control Bonds?
To avoid claims on their bonds, developers in Jackson County must ensure that they properly install all required erosion and sedimentation control measures.
What Other Insurance Products Can Agents Offer Developers in Jackson County?
Most reputable developers 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 Jackson County Land-Disturbing Permit Holder Customers?
Jackson County unfortunately does not provide the public with a list of active land-disturbing permits. We suggest contacting the Office of Permitting and Code Enforcement to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
