Is the City of Gulf Shores requiring you to get a $5,000 Contractor License Bond? Electrical, general, HVAC, and plumbing contractors may need to get a contractor bond as part of their business licensing requirement in order to protect the public and the City from damages caused and not repaired by the contractor.
Like most insurance coverages a contractor needs to purchase in order to work, the surety bond is required to protect their customers from faulty or poor workmanship, not to give the contractor any coverage themselves.
Typically, the contractor’s warranty is for the benefit of people who are financially injured from work not completed up to code, ordinance, or contract specification. If the contractor doesn’t come back to address the damage or shortcomings that should have been addressed in their warranty, then the surety bond can be tapped into and Jet Insurance Company will help pay for the damages.
The bond will always cost $100 annually or $10 a month with Jet. You can save some money by purchasing a two- or three-year bond for $175 or $250, respectively.
There are no gimmicks or middlemen to get in the way of the bond purchase which only takes a couple of minutes online.
Whether applying online or calling us at 855-296-2663, the whole bond process only takes a couple of minutes. We need some basic business information and payment information. You will receive a copy of the bond and receipt immediately.
The bond must get filed to the City of Gulf Shores. Jet can ship the bond to the City for you which is our default method. Should you want to submit the original bond form yourself, just select that option at checkout and we will get the form to you. The bond needs to be submitted to the following address:
City of Gulf Shores
205 Clubhouse Dr Ste B
Gulf Shores, AL 36542
If you choose our monthly payment plan option, the contractor license bond will stay active so long as the automatic payments come through.
For contractors on annual or multi-year terms, Jet will send a notice prior to the bond’s expiration date. All you need to do is pay the renewal premium which can be done over the phone, online, or via mail.
Should the need arise to cancel the bond just email us at [email protected] requesting a cancellation. Jet will notify the City of Gulf Shores and refund back any unearned premium.
Builders, general contractors, electricians, plumbers, and HVAC contractors need to execute the contracts entered into and complete them on time. If the client points out faulty, poor, or incomplete work, then the contractor must address the situation appropriately. It is not a matter of if, but when a contractor will be tested and have to make a tough call if a trivial complaint truly warrants a fix.
Being on the safe side includes following the adopted building code of Gulf Shores and the contract entered with the client which is a great place to start to avoid complaints against your business license. Should the customer (or even the City itself) escalate the situation, an inspection will soon follow. If the inspector sides with the customer, a demand will most likely be handed down to the contractor to fix or pay for the repair. Failure at this juncture to correct the issue will end in further disciplinary action which may include a license bond claim.
Jet will defend you in the event of a bond claim and we will need you to submit all evidence you have available. If the claim is valid, Jet will compensate the damaged party directly up to the $5,000 bond limit. The contractor remains responsible for the actions and will need to pay Jet back for any amount paid out. All surety bonds and surety companies operate in this manner, as a guarantor to make payment who will still request indemnification.
Performance or completion bonds may be needed for specific jobs performed for the City of Gulf Shores. Contact Jet if you are in need of a job specific bond or are bidding on one now.