Rocky Mount Insulation Contractor Bond: A Comprehensive Guide

This guide provides information for insurance agents to help their customers obtain a Rocky Mount Insulation Contractor bond

Important Note: North Carolina requires insulation contractors to obtain a statewide general contractor license, under the specialty classification S(Insulation), and contractors that do not meet the working capital requirements for this license are required to purchase a surety bond. This page focuses on the bonding and licensing requirements for insulation contractors in Rocky Mount. To learn more about the North Carolina General Contractor bond, click here. 

At a Glance:

• Average Cost: $100 per year or $10 per month
• Bond Amount: $1,000
• Who Needs it: Insulation contractors operating in Rocky Mount, North Carolina that are billed for their permits on a monthly basis
• Purpose: To ensure the city will receive compensation for financial harm if the contractor does not pay all required permit and inspection fees
• Who Regulates Insulation Contractors in Rocky Mount: The Rocky Mount Inspection Services Division

Background

Rocky Mount Code of Ordinances 5-81 requires all insulation contractors operating in the city to obtain a permit with the Inspection Services Division before beginning work on a job. The Rocky Mount City Council enacted the permit requirement to ensure that insulation contractors engage in ethical business practices. To provide financial security for the enforcement of the permitting requirement, insulation contractors that choose to be billed monthly for their permits, as opposed to paying daily inspection fees, must purchase and maintain a $1,000 surety bond to be eligible for a permit.

What is the Purpose of the Rocky Mount Insulation Contractor Bond?

Rocky Mount requires insulation contractors that are billed monthly for their permits to purchase a surety bond as part of the application process to obtain an insulation permit. The bond ensures that the county will receive compensation for financial harm if the contractor fails to abide by the regulations outlined in Rocky Mount Code of Ordinances 5-67. Specifically, the bond protects the county if the contractor fails to pay all required permit and inspection fees. In short, the bond is a type of insurance that protects the county if the insulation contractor does not faithfully perform their duties.

How Can an Insurance Agent Obtain a Rocky Mount Insulation Contractor Surety Bond?

BondExchange makes obtaining a Rocky Mount Insulation Contractor bond easy. Simply log in to your account and use our keyword search to find the “Rocky Mount” 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 Rocky Mount Insulation Contractor Bond?

A credit check is not required for the Rocky Mount Insulation Contractor bond. Because the bond is considered relatively low risk, the same low rate is offered to all insulation contractors in Rocky Mount regardless of their credit history.

How Much Does the Rocky Mount Insulation Contractor Bond Cost?

The Rocky Mount Insulation Contractor bond costs just $100 per year or $10 per month.

Who is Required to Purchase the Bond?

Rocky Mount requires insulation contractors that choose to be billed monthly to purchase a surety bond as part of the application process to register their business and obtain a permit. To paraphrase 21 NCAC 12A .0202, an insulation contractor is a person that, as an independent business, installs, alters, or repairs insulation media used for the non-mechanical control of temperatures for the construction of buildings. This definition does not apply to the insulation of mechanical equipment as well as ancillary lines and piping.

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 Insulation Contractors Apply For a Permit in Rocky Mount?

Insulation contractors in Rocky Mount must navigate several steps to obtain a permit. Below are the general guidelines, but contractors should refer to the city’s permit application instructions for details on the process.

Step 1 – Obtain a State License

North Carolina requires insulation contractors to obtain a statewide license from the North Carolina Licensing Board For General Contractors. To obtain a state license, contractors must:

• • Determine the license classification:
    • Building (required for insulation contractors)
    • Residential
    • Highway
    • Public Utilities
    • Specialty
  • Determine the license type:
    • Limited: Can accept jobs costing a maximum of $500,000
    • Intermediate: Can accept jobs costing a maximum of $1 million
    • Unlimited: Can accept all jobs regardless of cost
  • Purchase a surety bond (only if the contractor does not meet the working capital requirements)
  • Appoint a qualifying individual to pass the pre-licensure exam
  • Submit a completed application online here

For more information on how to obtain a North Carolina General Contractor License, check out our NC General Contractor bond page.

Step 2 – Register the Business

Rocky Mount Code of Ordinances 5-66 requires insulation contractors to register their business with the Inspection Services Division before applying for a permit. To register their business, insulation contactors should contact the division at (252) 972-1109 or stop by their office between the hours of 8:30 – 9:30 am or 4:00 – 5:00 pm, Monday through Friday, located on the second floor of City Hall.

Step 3 – Complete the Application

All Rocky Mount Insulation Permit applications should be faxed to (252) 972-1590 or emailed to [email protected]. Contractors must complete the application in its entirety, and pay all required fees.

Step 4 – Purchase a Surety Bond

Insulation contractors that choose to be billed monthly for their permits must purchase and maintain a $1,000 surety bond

Do Insulation Contractors in Rocky Mount Need to Renew Their Permits?

No, insulation contractors in Rocky Mount do not need to renew their permits. However, contractors must apply for a new permit for each job they undertake. Additionally, insulation permits will typically expire 6 months from the date of issuance if no work has been completed at that point or if work has been halted for a period of 12 months.

What are the Insurance Requirements for Insulation Contractors in Rocky Mount?

Rocky Mount does not require insulation contractors to purchase any form of liability insurance as a prerequisite to obtaining a permit. However, insulation contractors with employees must purchase workers’ compensation insurance. Insulation contractors that are billed on a monthly basis for their permits must purchase a $1,000 surety bond.

How Do Rocky Mount Insulation Contractors File Their Bonds?

Contractors should submit their completed bond forms, including the power of attorney, to the Inspection Services Division on the second floor of City Hall.

The surety bond requires signatures, as well as witness 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:

• Legal name, address, phone and fax number, email address, and state license number of the entity/individual(s) buying the bond
• Surety company’s name, address, phone and fax number, email address, and state of incorporation
• Bond amount
• Date the bond is signed

What Can Rocky Mount Insulation Contractors Do To Avoid Claims Bonds?

To avoid claims on their bonds, insulation contractors in Rocky Mount must pay all required permit and inspection fees in a timely manner.

What Other Insurance Products Can Agents Offer Rocky Mount Insulation Contractors?

Insulation contractors with employees must purchase workers’ compensation insurance. Additionally, most reputable insulation 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 Rocky Mount Insulation Contractor Customers?

North Carolina conveniently provides a database to search for general contractors in the state. We also suggest contacting the Inspection Services Division for a list of active insulation contractors operating in the city. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.