Mountain Brook, Alabama Contractor Bonds

City of Mountain Brook Contractor Bonds

Certain contractors are required to file a surety bond along with their license or permit with the City of Mountain Brook as a guarantee that their actions will not cause harm to the public. Purchasing your Mountain Brook Contractor Bond with Jet sets a precedent that you will follow other obligations in the Mountain Brook Code of Ordinances.

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The following classifications of contractors must submit a surety bond: blasting, building, excavation, sewer and septic tank, paving, land disturbing, and sprinkler system contractors, plumbers, gas fitters, and contractors in the business of demolishing structures. 

What Is the Cost of Contractor Bonds in Mountain Brook? 

With Jet, you can purchase most Contractor Bond for just $100 per year or $10 a month! Bonds that have a limit of $10,000 or less are automatically approved at the $100 per year rate, with monthly and multi-year options available. 

Bond TermCost
Monthly$10
1 Year$100
2 Years$175
3 Years$250
Mountain Brook Contractor Bond Pricing

Most classifications of Contractors can purchase their Contractor Bond with Jet instantly at a guaranteed rate. Blasting Contractor Bonds have a limit of $100,000, and due to the added risk, personal credit will be evaluated and a further review may be needed. Once a Jet team member has reviewed the application, a quote will be emailed to you that is ready for immediate purchase.

The Process of Buying A Mountain Brook Contractor Bond With Jet

Once you have received your approved quote and purchased the Contractor Bond, Jet will email a digital copy of your bond and a receipt to you for your records. Jet can send the bond directly to the City of Mountain Brook, or you can request the bond to be mailed to you at checkout.

The original bond must be mailed in to: 

City of Mountain Brook
PO Box 130009
Mountain Brook, AL 35213

The Contractor Bond generally stays active until cancelled at the request of the surety (Jet). This can happen when you request cancellation of the bond or if there is nonpayment of the monthly or renewal premium. You will receive a renewal notice with plenty of time to pay for a new bond term. Simply fill out the mailed notice or click the link in your email to complete the renewal. 

If you need to cancel the bond, you can email Jet at [email protected]. Jet must notify the City to begin the cancellation process. License bonds will be cancelled by the City 30 days after the notice was received. Permit bonds remain active until the project is completed and inspected by the City. Liability is released after the inspection is finalized. 

How Does a Contractor Avoid Bond Claims?

Contractor Bonds in Mountain Brook are used to prevent the City and its citizens from being harmed by a contractor through fraud, negligence, or willful misconduct. Avoiding claims is as easy as following license/permit regulations and the corresponding legislation listed below. Any complaint with the quality of work or a violation of the applicable Code will be reported to the contractor for adjustment. This presents an opportunity to resolve the issue right away before escalating into a legal action or claim on the bond. 

Failure to correct problems can result in disciplinary action from the City, as well as civil actions or a claim on the bond. The bond accounts for any reparation of damages needed to correct or complete the project for which they were hired for. Claims can be made by the City or a person who hired the contractor. 

Jet is legally obligated to payout a valid claim, following an investigation into whether the claim is valid. Once the injured party receives payment from Jet, you must pay Jet back since your actions broke the license/permit agreement and caused harm. 

To further understand the behavior that is expected of you as a licensed or permitted contractor, you can read the obligations disclosed in the Mountain Brook Code of Ordinances below: 

Blasting Contractor: Part II, Chapter 105 - BLASTING

Building Contractor: Chapter 109, Article I, Section 109-5 - Licensing and bonding of building contractors. 

Clearing, Earthwork, Soil Erosion and Land Disturbing Permit: Chapter 113, Article II - SOIL EROSION AND SEDIMENTATION CONTROL

Demolition of Structures Permit: Chapter 109, Article VII - MOVING AND DEMOLITION OF BUILDINGS

Excavation Contractor: Chapter 46, Article III - EXCAVATIONS

Paving Contractor: Chapter 46, Article I, Section 46-5 - Licensing and bonding of paving contractors

Plumber or Gas Fitter: Chapter 109, Article V - PLUMBING and Article IV - GAS

Sewer and Septic Tank Contractor: Chapter 109, Article V, Section 109-230 - Licensing and bonding sewer and septic tank contractors

Sprinkler System Contractor: Chapter 109, Article V, Section 109-231 - Same — Sprinkler system contractors

Are There Other Bonds That a Mountain Brook Contractor Needs? 

A contractor working in Mountain Brook must hold to the City’s permit/license and bonding requirements, but may also need to comply with the state’s requirements for contractors. 

City of Mountain Brook Contractor Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: