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Surety Bond Renewal Guide - Wage and Welfare Bonds

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10-15-2021

It is common for surety bonds to be purchased on annual terms, often in concurrence with license terms. However, Wage and Welfare Bonds can work a bit differently. Wage and Welfare Bonds are only required when you have union members working for you. So, once they are no longer under your employment, the bond is not necessary. 

Jet Insurance Company allows for the easy cancellation and repurchase of these bonds as union projects come and go for contractors. If a contractor needs the Wage and Welfare Bond on a permanent basis, then Jet’s renewal process is as easy as making payment on time.

Renewal Process

When you are nearing the end of your bond term, Jet will send a renewal invoice to your mailing address in addition to your email. If you still have union members working for you, you must complete the bond’s renewal to remain compliant with the Collective Bargaining Agreement for the hired union members.

The invoice will contain a quote for your renewal term, based on the current information Jet has on file. If supplemental information is needed (like financial statements) for larger bond limits, the notice will indicate what else is required to renew the bond. 

Oftentimes, a Wage and Welfare Bond have a bond limit that can vary, so any changes in the bond amount will affect the renewal rate. Please inform Jet if the bond limit has changed so we can provide the proper body form to the Union.

Once your renewal has been paid for, Jet will send you a confirmation and copy of the bond form. Most often, the Union that required the Wage and Welfare Bond will not need any confirmation of continued bond coverage; but, if a continuation certificate is required, Jet will prepare it and send it to you. 

What if I Don’t Need to Renew? 

If you no longer have any union members working for you, then you do not need to renew your Wage and Welfare Bond. You’ll still receive a renewal notice, which can be ignored. 

A good part about bonding with Jet is you can request cancellation early and receive a pro-rata refund. Even better if you pay for the bond monthly, then you just call and cancel the bond anytime and there is no need to wait for a refund. Don’t pay for what you do not need. The best way to cancel the bond is to email Jet at [email protected].