North Carolina Irrigation Contractor Bond

North Carolina Irrigation Contractor Bond

The State of North Carolina Irrigation Contractors’ Licensing Board requires businesses that install sprinkler and irrigation systems to obtain a $10,000 Irrigation Contractor License Bond. This bond is part of the licensing requirements for irrigation contractors to protect the public from damages sustained from the contractor.

PURCHASE IRRIGATION CONTRACTOR BOND

Contractors can expect to get their bond quicker for less money with Jet! We have eliminated middlemen brokers and agents to get contractors bonded directly from the company that will represent them.

How Much Does An Irrigation Contractor Bond Cost? 

With Jet, the Irrigation Contractor Bond always costs $100 for a year. It can be purchased online in moments.

North Carolina Irrigation Contractor Bond Cost
Term Price
Monthly $10
1 Year $100
2 Years $175
3 Years $250
 

Jet’s rates are the best in the market no matter the term you would like to purchase. We have a monthly payment offer, which allows for contractors to purchase the bond only for the time needed. Jet’s monthly option is a convenient automatic process, so contractors do not need to worry about missing a payment.

Our competition’s rates are higher as other surety carriers have brokers and agents collecting commission and adding fees to the bond rates. Contractors can confidently purchase bonds with Jet directly.

Can Jet File the Bond For Me With the Irrigation Board?

Yes, Jet can! Jet will file the original Irrigation License Bond to the irrigation board for you. Other carriers will require you to ship the bond yourself after they ship you the bond (and they will charge for that).

Should the contractor want to file the bond themselves, as may be the case for new licensee applicants, the contractor may request Jet to send the bond to them at checkout. The bond form is filed at the following address:

Irrigation Contractors’ Licensing Board
PO Box 41421
Raleigh, NC 27629

What Happens If I Need to Cancel My License Bond?

Contractors need only to notify Jet with their intent to cancel and Jet will process the bond cancellation and return all unearned premium. Other carriers will retain minimum earned premiums, which in the case of NC Irrigation License Bonds, will typically leave no refund for the contractor.

For contractors that choose monthly payments, just let us know when you need to cancel the bond and we will stop the withdrawal process.

This bond remains active until Jet files cancellation with the Irrigation Board. After receiving the cancellation notice, the Irrigation Board will keep the bond active for another 30 days. Jet must take those 30 days into account when calculating the refund amount as the bond is still active at that time.

What Can an Irrigation Contractor Do to Avoid a Bond Claim?

In North Carolina, irrigation contractors need to uphold the terms or their contract and warranties to avoid issues with the Irrigation Contractors’ Licensing Board. For example, should a contractor install a faulty sprinkler system and not rectify the issue, they could face disciplinary action from the board. All rules and regulations concerning licensed irrigation contractors can be found in Chapter 23 of the Occupational Licensing Board Commission statutes.

Any person damaged by the irrigation contractor can file a complaint against the contractor to the Irrigation Board. Complaints can be made up to one year following the completion of the job. The board will investigate the complaint and determine what action may need to be taken by the contractor. Should the complaint be justified, the contractor has 48 hours following the inspection to fix any issues found. The Irrigation Board has further details regarding the complaint process on their “Report a Complaint” website page

Serious violations or failure to abide by the board’s orders can result in civil penalties up to $2,000. Furthermore, the Irrigation Board may suspend or revoke a license if a contractor applicant commits fraud, malpractice, incompetence. It is always in the best interest of contractors to resolve any infractions to avoid exacerbating the situation that may also lead to a bond claim.

What Happens If an Irrigation Contractor Receives a Bond Claim?

Tell Jet immediately should there be a claim on your bond. Jet will investigate every claim against an irrigation contractor to verify its validity. Other carrier’s agents and brokers who sell bonds to contractors disappear when an issue arises leaving it to a surety carrier that the contractor has never heard of to service the claim. 

Should the claim be deemed valid, Jet will make payment up to the $10,000 limit of the bond. With surety bonds, the principal (in this case the irrigation contractor) is responsible to pay back the Surety (Jet) for the payout amount.

The bond is a guarantee the contractor abides by their contract and regulations surrounding their license and therefore are liable for their actions. Think of the bond as a letter of credit to the Irrigation Board from Jet, promising the contractor will act honestly and perform their job satisfactorily.

Why Does the Irrigation Board in North Carolina Require Contractors to Get This Bond? 

The North Carolina Irrigation Contractors’ Licensing Board has been regulating irrigation contractors since 2009. Their goal is to protect the public and promote water conservation in North Carolina. The surety bond is a financial tool used by the state for parties damaged by irrigation contractors. Jet as a surety carrier will make payments to the public if the contractor is unwilling or unable. Jet and the surety industry will typically review bond applicants to verify their trustworthiness, but in this case Jet has determined that irrigation contractors have a steady track record and need little oversight.

How Does the Application Process Work With Jet? 

With Jet the process is entirely online and takes a minute. In the case of corporations, the owner and any applicable irrigation employee must sign for the bond online. A copy of the bond and receipt are available immediately, and the original is shipped to the board.

PURCHASE IRRIGATION CONTRACTOR BOND

How Do Irrigation Contractors Renew This Bond?

Jet will send notification well in advance of the renewal date and contractors need only provide payment to renew their bond. The bond is continuous until cancelled, meaning if renewed on time, no notice needs to be sent to the Irrigation Board concerning the bond.

For contractors on monthly payments, there is nothing that needs to be done to renew the bond. So long as payments come out of the dedicated account the bond remains active.

Do Irrigation Bonds in North Carolina Expire?

This bond does expire with Jet at the end of its term, unless you select the monthly payment option, in which case the bond does not expire. If Jet does not receive premium prior to the bond’s expiration, the irrigation contractor’s bond will cancel and the license is at risk for a suspension.  

Are There Other Bonds That an Irrigation Contractor Might Need? 

Yes, any contractor performing landscaping in addition to irrigation work will need a Landscape Contractor's License Bond. In North Carolina there are many city and county license and permit bonds contractors need to obtain. Be sure to confirm with the municipality, where work is being done, that all proper bonding has been addressed.

 

North Carolina Irrigation Contractor Bond Form