Union Bonds

You’re a contractor hiring union laborers and while those skilled workers come with benefits you are sure to run into some red tape with the union. One problematic stepping stone that may pop up (and why you are here) is a Union Bond Requirement. Jet can help you with this need.

APPLY FOR YOUR BOND

The bond may be required by a local union before a contractor can hire union laborers. Those hiring union members can be signatory contractors permanently employing laborers or contractors utilizing laborers for a single project. This bond may also be referred to as Wage Bond, Employee Wage and Benefits Bond, Fringe Benefits Bond, or variations of these.

Why Are Wage and Welfare Bonds Required by Local Unions?

Unions may seek to additionally protect laborers and their union dues by requiring a Wage and Welfare Bond, or Union Bond, for contractors hiring union members. The Union Bond is a financial guarantee provided by a third party, Jet Insurance Company, that restitution is available should the contractor fail to provide prompt payment of wages and welfare benefits.

This infographic gives a visual to the reason behind union bonds:

VIEW FULL IMAGE

How Is the Union Bond Limit Determined

The bond limit varies, depending on the union’s requirements. Some local union chapters base it on the number of reportable hours per month or hired union contractors, some have a set bond amount, and others decide the bond limit on other terms.

For required bond limits under $10,000, contractors can expect to purchase their bond automatically online. For other cases, a Jet underwriter will contact you directly to work out the bond details for quick and proper filing.

What Is the Cost for a Union Bond?

Prices are highly dependent on the bond limit set by the union and can vary based on the credit of the applicant (it’s a soft credit check that doesn’t affect your score). Standard pricing is 2-5% of the required bond limit. We apologize for not being able to define your bond price in this article, thus making you do the math, but you can easily apply online by clicking the button above and let us calculate that bond cost for you.

How Long Are Union Bonds Required?

Most Wage and Welfare Bonds are needed for as long as the contractor employs union members. However, the bond can typically be purchased for annual terms and renewed. 

Jet offers most union bonds on a monthly basis, so contractors employing union members for a single job can cancel the bond after a few months when the job is complete. With Jet, you are never locked into an overpriced annual term.

If no longer needed, the contractor just needs to contact Jet to cancel the bond. You can easily email us a bonddept@jetsurety.com or call (855) 296-2663 to do so. Keep in mind that union bonds will have a “cancellation period”, meaning Jet is forced to keep the bond active until that time period ends. Since coverage is extended (typically 30 days) we have to delay ending monthly payments or calculate refunds with this prolonged cancellation period in mind.

Filing a Surety Bond to a Local Union

There is no consistency between local chapters on how they want a contractor to show proof of bonding. Sometimes the contractor must deliver the original bond form themselves, other times Jet can send the bond via email to the local union. 

Often we have it all figured out for you and just before you complete the bond purchase you see exactly how the bond will be filed or at least choose your method. Shipping overnight will cost you, otherwise, it is free of charge.

Actions That Lead to Union Bond Claims

If a contractor fails or neglects to comply with contractual obligations when hiring a laborer, a claim may be filed by the union to recover damages. The following is a list of just a few of the things the contractor is responsible for paying:

In cases where a bond claim is pursued, Jet will assess the validity of the claim prior to making a payout. Hate to say, but not all claims coming from local unions are well informed or accurate. Contractors that can submit contract details and evidence of payment will generally not have an issue with a bond claim.

Should Jet reimburse the union for a claim on the bond, the contractor is liable to pay the surety company (Jet) back. Unlike general liability or auto coverage that covers accidents, a union bond is a guarantee of wage and welfare payments for the union’s benefit from a financial guarantor. The responsibility remains with the contractor to not breach their contract. That culpability must be atoned. Think about it like this - the contractor gives $10,000 to the union as a security deposit and if the union has to use part or all of the $10,000 the only way they let that contractor do business again is if that amount is restored to the full amount.

List of National and International Unions

Below is a list of international and national unions with contact information. Please note this may not be a comprehensive list; if you are required to obtain a Wage and Welfare Bond from a union not listed, let us know and we will gladly help you get the bond you need.

UnionAddressPhoneEmail
International Union of Bricklayers and Allied Craftworkers (BAC)620 F Street NW
Washington, DC 20004
(202) 783-3788askbac@bacweb.org
International Association of Heat and Frost Insulators and Allied Workers (Insulators)9602 Martin Luther King Jr. Hwy.
Lanham, MD 20706
(301) 731-9101hfi@insulators.org
International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers Union (Ironworkers)1750 New York Avenue NW
Washington, DC 20006
(202) 383-4800iwmagazine@iwintl.org
Laborers' International Union of North America (LIUNA)905 16th Street, NW
Washington, DC 20006
(202) 737-8320
United Brotherhood of Carpenters and Joiners of America (UBC)101 Constitution Ave, NW
Washington, DC 20001
Operative Plasterers' & Cement Masons' International Association (OPCMIA)9700 Patuxent Woods Dr. Suite 200
Columbia, MD 21046
(301) 623-1000
International Brotherhood of Electrical Workers (IBEW)900 Seventh Street, NW
Washington, DC 20001
(202) 833-7000webmaster@ibew.org
International Brotherhood of Teamsters (Teamsters)25 Louisiana Avenue, NW
Washington, DC 20001
(202) 624-6800
International Union of Elevator Constructors (IUEC)7154 Columbia Gateway Dr.
Columbia, MD 21046
(410) 953-6150iuechdq@iuec.org
International Union Painters and Allied Trades (IUPAT)7234 Parkway Dr
Hanover, MD 21076
(410) 564-5900mail@iupat.org
United Association: Union of Plumbers, Fitters, Welders and Service Techs (UA)Three Park Place
Annapolis, MD 21401
(410) 269-2000
International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART)1750 New York
Ave, NW, 6th Floor
Washington, DC 20006
(202) 662-0800info@smart-union.org
International Union of Operating Engineers (IUOE)1125 17th Street, NW
Washington, DC 20036
(202) 429-9100
United Union of Roofers Waterproofers & Allied Workers (Roofers)1660 L Street, NW, Suite 800
Washington, DC 20036
(202) 463-7663
United Association Road Sprinkler Fitters Local 669 (Road Sprinkler Fitters)7050 Oakland Mills Road, Suite 200, Columbia, MD 21046(410) 381-4300
National and International Unions

Local Union Bond Requirements

Alabama

IBEW Local 136
Structural Workers Union #92
Millwright Local Union 1192

Nevada

Teamsters Local Union 631
Carpenters Joint Trust Fund
United Association of Journeymen Local 525
Southwest Regional Council of Carpenters
International Union of Painters and Tradesmen Local Union 159

North Carolina

Lexington Local Union 312

Ohio

Bricklayers and Allied Craftworkers’ Local Unions
Building Laborers' Local No. 310
Carpenters Local Unions
IBEW Local Unions
Iron Workers’ Local Unions No. 17 and 550, and the District Council of Southern Ohio & Vicinity
IUOE Local 18
IUPAT District Council 6-19 and 53 Local Unions
OPCMIA Local Unions
Sheet Metal Workers Local Unions 24 and 33
Sprinkler Fitters Local Union 669
Plumbers, Fitters, Welders, and Service Technicians Local Unions

Oregon

IBEW Local Union 48

Notary Bond Application:

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: