North Carolina Highway Encroachment Performance and Indemnity Bond
A Highway Encroachment Performance and Indemnity Bond may be required by a local North Carolina District Office before each project a contractor or business performs in a highway right-of-way. Jet Insurance Company provides this bond as a financial guarantee to the North Carolina Department of Transportation from any damages caused by a second party or contractor to North Carolina highways from utility or non-utility installation in the right-of-way.
PURCHASE HIGHWAY ENCROACHMENT PERFORMANCE & INDEMNITY BOND
Jet cuts out the middleman to provide the most efficient and cost effective means to satisfy your bonding requirements.
What Is the Cost for the Highway Encroachment Performance and Indemnity Bond?
Jet offers low rates for the Highway Encroachment Performance and 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 |
At Jet we have streamlined the process so you can get a bond quickly and easily. Simply provide your business information along with payment and you can have a bond in your hands in less than a minute.
Can Jet File the Performance and Indemnity Bond For Me?
Yes! Jet will file the bond to the county District Office requiring the bond. A copy of the bond and receipt for your records will be made available to you online after the bond is purchased.
There are 38 District Offices in North Carolina, if you need to file the bond yourself, the address for each can be found on the NCDOT County Contacts page. Let Jet know at checkout that you wish to file the bond yourself and we will ship it to you directly.
Can I Cancel My Performance and Indemnity Bond?
No. It cannot be cancelled, but the bond liability can be released a year after the completion of the project. The bond must stay in force until NCDOT performs a final inspection of the project to ensure that the roadways are in good condition.
How Do I Avoid a Claim on My Highway Encroachment Performance and Indemnity Bond?
Written in the bond is a condition that you install encroaching facilities per “Policies and Procedures for Accommodating Utilities on HIghway Right of Way,” in reality, this bond is just making sure that you are leaving the road in the same condition it was before your work was performed. A bond claim can easily be avoided as long as the section of highway that you performed work on is left in good condition. Even if it is not, you can still return to the job location and fix the problem, or reimburse NCDOT for the cost of repairs.
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. 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 a Claim on My Performance and Indemnity Bond?
Inform Jet immediately if there is a claim filed 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 legitimate, Jet will make payment up to the full bond limit. 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 Performance and Indemnity Bond?
The bond ensures that the highway will be left in the same condition it was prior to work performed in the right-of-way. The NCDOT does not want to be left to front the bill for highway damages caused from your construction, utility or non-utility installation, 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 is entirely online, you can have a quote and the bond in your hands in just minutes. We only need some information about your business and the job location, specifically, the route or highway number, county, date of encroachment agreement, specific location of encroachment (between here and here), and the type of work performed (water, sewer, gas, etc.).
PURCHASE HIGHWAY ENCROACHMENT PERFORMANCE & INDEMNITY BOND
When Does the Performance and Indemnity Bond Obligation End?
The bond obligation ends once the bond is released. The bond can only be released at a minimum of one year after the project has been completed, and after NCDOT completes a final inspection of the project.
Are There Any Alternatives for the Performance and Indemnity Bond?
Yes, someone who is doing multiple projects in the right-of-way can submit a Continuing Indemnity Bond that will cover jobs required for an encroachment agreement, and eliminates the need to submit an individual Performance and Indemnity Bond.
