Surety bonds for permitted work are required for the protection of the public and/or the regulatory agency issuing the permit. The permits concerned in this article are for a singular purpose, like a work in a public right-of-way or a temporary permit to operate a storefront. This renewal guide does not apply for continuing or permanently needed permits for licensing or registration.
For nearly all permit bonds issued, the bond never needs to be renewed. The permitted work is to be completed prior to the bond’s expiration. The premium collected by Jet Insurance Company is an amount determined to cover the project’s risk.
You may be shocked to learn that not all projects are completed as originally scheduled. This extended risk to Jet Insurance Company is understood, within reason. There is a limit, however.
As with all insurance carriers offering surety bonds, the cutoff is at one year before more premium is required to be paid by the principal (permit holder). With projects that are anticipated to be longer than a year, that cutoff point is extended to 2 or 3 years, as needed.
These bonds cannot be cancelled during the bond’s original term. The bond is fully earned for the risk of the project. Yet, if the bond is renewed, meaning additional premium is collected, then the bond can be cancelled once the surety company is released by the regulator. A pro-rata return of premium will then be returned to the permit holder.
Jet’s Renewal Process
If Jet has not received a release from the regulatory agency prior to the bond expiration, then additional premium will be required. An invoice will be sent to the permit holder a couple of months prior to the expiration. There are a variety of ways the permit holder will receive a notice and be able to pay for the bond’s renewal.
First, a link is sent via email to pay online, which is by far the simplest and quickest way. Second, you can call (855) 296-2663 to provide a card for payment. Lastly, when you receive an invoice in the mail a return envelope is provided to send Jet Insurance Company a check.