Contractors must purchase and maintain a Wage and Welfare Bond if they hire members of Local Union 669 (more formally known as Road Sprinkler Fitters Local Union 669, United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada, AFL-CIO). Jet Insurance Company provides the surety bond to guarantee compensation is available should an employer not pay due wages and benefits to the employee or to the Union.
The bond limit is determined by the number of reportable hours per month your hired employees are working. The cost of the Wage and Welfare Bond will depend on your personal credit, financial statements and the required bond limit. Refer to the chart below for Jet’s preferred credit tier pricing at the different bond limits.
|350 or less hours||$25,000||$500|
|2,001 or more hours||$250,000||$5,000|
The main advantage of working with Jet is you are able to keep costs low by working directly with the insurance company. Jet doesn’t work with brokers or agents who are paid commissions and tack on fees.
The Sprinkler Fitters Local Union No. 669 has the goal of protecting, educating and training its members by staying on top of the evolution of fire sprinkler systems. Union Journeymen and apprentices hired by contractors hold a high level of knowledge and skill in their trade and have bargained for additional guaranteed benefits.
To ensure union and members’ financial safety, the Union requires employers to furnish a Wage and Welfare bond as a guarantee that union members will be paid wages and benefits they are owed. The bond is also an assurance that the employer will pay the mandatory Union funds.
Jet’s application is streamlined, only asking for information needed to get you an approved quote. You will need to supply your social security number (for the soft credit check) and the required bond limit, among other basic information. A Jet underwriter will most often need to review the contractor’s financial statements to determine eligibility and final bond premium rate.
Jet will carry out a quick review and provide an approved quote which will be emailed to you to purchase online. You will receive a digital copy of the bond and receipt after the payment is complete.
After fulfilling payment, Jet will take care of sending the bond to the Union for you. However, if you wish to file the bond yourself, that option is available to select at checkout. The bond must be sent to the local union district you operate in.
Yes, Jet allows you to cancel at any time. A refund may be applicable, depending on how far into the bond term you are requesting cancellation. Send us an email to [email protected] when you are ready to cancel and we will notify the Road Sprinkler Fitters Local Union 669. Once the Union releases Jet of liability, we will calculate any unused premium, and if available it will be returned to you.
Make sure you have another bond on file with the Union if you are continuing to hire union members, lest you fall into violation of the bargaining agreement.
Jet will send you an invoice electronically and to your mailing address when the bond’s renewal date is near. Payment is all that is needed, no additional paperwork is required. Failure to make renewal payment will result in Jet requesting the cancellation of your Wage and Welfare Bond with the Local Union.
There is no need to renew the bond for contractors hiring union members for a single project to have bond coverage for one year,should the project complete before that time.
In the following order of priority, the bond is used to guarantee payment of:
Bounced checks are considered nonpayment of wages. All dues are to be paid within 10 days of notice from the Union, or the bond will be utilized for compensation.
You can avoid claims by paying your employees their wages and benefits, paying due funds to the Union, and following the Rules, Regulations, and Working Conditions Agreement with the National Fire Sprinkler Association, Inc. and the Road Sprinkler Fitters Local Union 669.
Any employee hired from the Union or the Union themselves can take action against your bond for defaulting on your obligations.
Once Jet has been notified, we will immediately ask you for any details and documentation surrounding the claim. Jet will ensure that all actions have been taken to correct the issue prior to the bond being used to reimburse the claimant(s). However, any legitimate claims are subject to being paid out by Jet.
Because the claim came from your refusal or failure to abide by contractual obligations, you are liable to pay Jet back for the full claim amount. You will not be able to operate without paying back the bond claim and will have future difficulties obtaining any occupational licenses or surety bonds.
Contractors may need a contractor license bond, depending on the state they are operating in and the type of work being performed. Jet offers bonds in most states so check with us for the best deal.