North Carolina Highway Encroachment Continuing Indemnity Bond
A Highway Encroachment Continuing Indemnity Bond provided from Jet Insurance Company financially ensures to the North Carolina Department of Transportation (NCDOT) that any work in the right-of-way will leave the highway in the same condition it was before the work was done. Typically each project in the right-of-way requires an individual Highway Encroachment Bond, called a Performance and Indemnity Bond, but the NCDOT provides the Continuing Indemnity Bond as an option for businesses and contractors performing multiple projects in the right-of-way throughout the year so they don’t have to constantly file individual bonds.
With Jet as your surety partner, you work directly with the carrier who will speed up the bond process and provide you defense in the event of a claim.
What Is the Cost of the Continuing Indemnity Bond?
Jet offers low rates for the Continuing Indemnity Bond at $100 annually or $11 monthly. The bond price is determined primarily by the required bond amount, as well as personal credit and years experience of the business owner.
| Limit | Cost |
|---|---|
| $10,000 | $100 |
| $25,000 | $250 |
| $50,000 | $375 |
Jet has an advantage by being the only insurance company offering bonding directly to you without any middleman agent or broker in the middle. We can offer a low rate on the bond with the most efficient process so that you can easily satisfy your bonding requirement and get back to what is important - your work!
Can Jet File the Continuing Indemnity Bond to the NCDOT for Me?
Yes! We will file the original bond directly to the NCDOT on your behalf. A copy of the bond and receipt for your records will be made available to you online after the bond is purchased. If for whatever reason you need to file the bond yourself, the address for filing is below:
State of North Carolina Department of Transportation
Highways Division
1536 Mail Service Center
Raleigh, CA 27699
Can I Cancel My Continuing Indemnity Bond and Get a Refund?
Of course! Let us know that you want the bond cancelled and Jet will process the cancellation with NCDOT and refund the remainder of the Highway Encroachment Bond.
There is a 60-day cancellation clause on the bond, meaning the cancellation will not take effect until 60 days after Jet sends notice to NCDOT. Bond premium returns take into account this cancellation period where Jet is still providing bond coverage.
How to Avoid a Highway Encroachment Continuing Indemnity Bond Claims
Bond claims are easy to avoid. Simply return the public space back to its original condition and there will be no risk of a claim against your bond. Even if the NCDOT finds an issue with the work done to the highway, you can always return to the location to fix the problem or reimburse NCDOT for the cost of repair.
It is important to avoid a bond claim because surety bonds are not like an insurance policy; you are required to pay back the amount the Surety Company pays out for the claim, and any fees associated with that. So it is important to avoid a claim in any way possible because you will have to pay any claim regardless, whether that be to NCDOT or the Surety Company (Jet).
What Happens if I Get Claim on My Continuing Indemnity Bond?
Inform Jet immediately if NCDOT is filing a claim against you. Jet will investigate all claims against you to verify their validity and will protect you against any invalid claims. Other carrier’s agents and brokers disappear when an issue arises leaving it to a surety carrier, that you may have never heard of, to service the claim.
Should the claim be deemed valid, Jet will make payment up to the limit of the bond. You are obligated to reimburse Jet for the claim payment. Think of the bond as a letter of credit to NCDOT from Jet, promising that you will return the highway back to the condition it was in before you performed the work.
What Is the Purpose of the Highway Encroachment Continuing Indemnity Bond?
The bond ensures that the highway will be restored to the same condition it was prior to work performed in the right-of-way. The North Carolina Department of Transportation does not want to be left to pay for highway damages caused from your construction, therefore they require the bond to ensure financial restitution from the bond if you fail to return the roads to their former condition.
How Does the Application Process Work With Jet?
With Jet, the process can be done entirely online. We only ask for a few easy pieces of information that you know off the top of your head. In just a minute you can have a quote and bond in your hands!
How Do I Renew the Highway Encroachment Continuing Indemnity Bond?
Put your calendars away, Jet will contact you well in advance of the bond renewal date! If you’re paying on an annual basis you need only submit payment before the expiration date. The renewal can be processed instantly online, or via mail, fax, or phone.
If you are on monthly payments they will simply continue as long as the payment information is up to date. There is a 60-day grace period where the bond remains active with the NCDOT should a monthly installment be missed for any reason.
Are There Any Alternatives for the Continuing Indemnity Bond?
The Continuing Indemnity Bond is just an option for those doing multiple projects in the highway right-of-way. If the contractor or business is only performing a few jobs, they can always submit a Highway Encroachment Performance and Indemnity Bond for each job they end up doing in the right-of-way.
