Surety Bond for Tennessee Home Improvement Contractors

Jun 30 Posted on

�Tennessee home improvement contractors

Tennessee home improvement contractors and contract security companies will need to adhere to new bonding requirements following the passage of SB 1188.

Tennessee home improvement contractors are required to obtain a license through the Board for Licensing Contractors in several counties when the cost of the project is between $3,000 and $24,999. Counties that have adopted the requirement are as follows:

  • Bradley
  • Davidson
  • Haywood
  • Hamilton
  • Knox
  • Marion
  • Robertson
  • Rutherford
  • Shelby

Under current law, Tennessee home improvement contractors have the option of providing a letter of credit, cash bond, property bond, or surety bond for $10,000 as a form of financial security. SB 1188 eliminates the option for home improvement contractors to post a cash or property bond, meaning only a surety bond or letter of credit in the amount of $10,000 will be accepted. Tennessee home improvement contractor applicants should note that the license does not cover electrical, plumbing, or HVAC work. Home improvement contractors should be familiar with their licensing requirements and all regulations set forth by the state of Tennessee.

SB 1188 also contains a provision for contract security companies in the state. Companies will need to obtain a surety bond when requesting a special event permit and hiring temporary security guards for the event. Temporary security guards are those that are not registered with the Department of Commerce & Insurance as employees of the contract security company. The amount of the surety bond will be determined at the time of permit application, and benefits anyone damaged by a temporary security guard acting under the special event permit.

To become licensed as a contract security company, applicants must meet criteria that includes the following:

  • At least 21 years old
  • U.S. citizen or resident alien
  • Of good moral character
  • Satisfying the experience or examination requirement
  • Provide three credit references with whom they’ve established a credit record

Consult Tennessee’s full list of contract security company licensing requirements before submitting an application.

Ready to get a Tennessee surety bond? Give Single Source Insurance a call today!

Read More »

Surety Bond Amount Changes for Washington Notaries

Jun 28 Posted on

�Washington notaries

Washington notaries public may see their bond amount change with the passage of SB 5081, which takes effect on July 1, 2018. Currently, notaries in the state must post a $10,000 surety bond to become licensed.

SB 5081 is Washington’s adoption of the Law on Notarial Acts via the Uniform Law Commission, which promotes consistency of law across states. Other states that have adopted the Act include Oregon, Iowa, and Colorado.

Washington notaries are licensed by the state Department of Licensing, and there are several prerequisites to licensure. Washington notary applicants must meet the following criteria:

  • At least 18 years old
  • Can read and write in English
  • Live in Washington state, or live in Idaho or Oregon while employed and/or doing business in Washington
  • Obtain a surety bond

Notary public applicants must submit a completed application to the Department of Licensing, along with a copy of their surety bond and a $30 application fee, paid by check or money order. While the current surety bond amount required is $10,000, SB 5081 allows the director of the Department to establish applicants’ bond amounts. The new law specifies that the surety bond must cover a four-year term, or expire concurrently with the notary’s license expiration. SB 5081 also stipulates that the bond must specify that it covers acts performed during the time of the notary’s commission.

Washington notaries can have their commission revoked, suspended, or their renewal denied for a few reasons, including the following:

  • Making false statements on their application
  • Being convicted of a felony
  • False advertising of the services they can perform as a notary
  • Notary commission revocation, denial, or suspension in another state
  • Failure to maintain a surety bond

Consult SB 5081 for a full list of prohibited acts. After receiving their commission, Washington notaries must obtain a stamp or seal that complies with the Revised Code of Washington Section 42.44.050 and with Washington Administrative Code 308-30-010.

Get in touch with Single Source Insurance today to learn more and get your Washington notary bond!

Read More »

Virginia Contractors Face New Surety Bond Regulations

Jun 26 Posted on

�Virginia contractors

SB 1113 takes effect on July 1, 2017, and will allow Virginia contractors to post a surety bond as proof of financial responsibility. Current law requires that Class A and B contractors prove a minimum net worth as dictated by their license class with a financial statement or a balance sheet reviewed by a CPA.

Virginia contractors are classified according to the value of the contracts they handle. Contractors handling one contract that totals $120,000 or more, or handling contracts totaling $750,000 or more over a twelve-month period are licensed as Class A contractors. Class B contractors handle one contract valued between $10,000 and $120,000, or contracts totaling between $150,000 and $750,000 over the course of a year. Class C contractors, who are not affected by SB 1113, handle one contract valued at less than $10,000, or contracts totaling less than $150,000 over the course of a year.

Class A contractor license applicants must demonstrate a minimum net worth of $45,000, and Class B contractors must demonstrate a minimum net worth of�$15,000. SB 1113 will allow applicants to obtain a $50,000 surety bond rather than providing a financial statement or balance sheet. When renewing their license, Virginia contractors must show proof of a current surety bond.

Virginia contractors are licensed by the state Board of Contractors, a division of the Department of Professional and Occupational Regulation (DPOR). The DPOR has created a step-by-step guide to becoming licensed as a contractor, and applicants should keep in mind that several counties and cities in Virginia have additional contracting licensure requirements. Check with the county and city in which you will be conducting business before beginning work on a contract to make sure you’re correctly licensed.

SB 1113 specifies that Virginia contractors’ surety bonds are intended to satisfy court-ordered judgments that are not satisfied by the contractor. The surety bond’s liability is for actual monetary loss, court costs, and attorney’s fees incurred in the pursuit of the judgment, and cannot be used for interest or punitive damages assessed against the contractor. The bill also specifies that surety companies must notify the Board when a claim is made against the bond, when a claim is paid out, and when the bond is canceled.

Ready to purchase your surety bond? Get in touch with Single Source Insurance today and learn more about your Virginia contractor surety bond!

Read More »