The NC Irrigation Contractors License Bond – What’s Really Covered Here?

In an effort to clean up the irrigation contractors business in North Carolina and protect our water resources, there is a new requirement effective June 29, 2009 that all irrigation contractors have a license with the state of NC. In order to get this license, each contractor must post a bond. But what does this bond really cover?

The North Carolina Irrigation bond states that it will protect all persons suffering from any loss of damage occasioned by the contractor failing to comply with any of the provisions of any municipal or county code and shall without additional cost to the person for whom the work was performed, remedy all defects in said work due to faulty workmanship or material furnished or used by the irrigation contractor. The bond goes on to advise that the remedies and repairs will be made to the satisfaction of the inspector with jurisdiction over that work. Let’s first of all applaud the State of North Carolina for putting all bond requirements under one state bond. Imagine if you had to purchase a bond for every city and county where you worked.

Are there limitations on the coverage provided by this bond? Sure there are. One of the biggest is that the bond will only be applicable for one year after the job is completed. After that time, the bond will not be an available remedy for the injured party. Another limitation is simply the size of the bond. The bond amount is $10,000 and if the remedy for the damages exceeds that amount, then the bonding company will be finished paying this claim and their liability to the claim will have been exhausted. Last of all, remember that a bond is not insurance, it is a financial guarantee of your ability to pay. So if the bond company has to pay a claim, remember that they will have an action for those damages against you, the irrigation contractor.

The NC Irrigation Bond is an integral part of the licensing process in NC. But don’t confuse this bond with insurance on your irrigation company. As the owner of an irrigation company you should at the very least have general liability insurance, workers compensation insurance as well as commercial auto policies and perhaps you should also consider equipment and tools coverage. At Clinard Insurance Group, in Winston Salem, NC we specialize in helping all kinds of landscaping contractors with their insurance needs. If you have any questions about the nc irrigation contractors license bond or about your other insurance needs, please visit us on line at our landscapers site, or call us, toll free at 877-687-7557.

The source information for this article was pulled from www.insuranceanswerguy.com.

NC Irrigation License Bond – Who Needs This Bond and Why?

After June 29th, in NC it will no longer be legal to perform installations or repairs on irrigation systems unless you are a licensed irrigation contractor. There are a few exceptions to this rule but not many. And to receive your license, you will need to provide the state of North Carolina with a $10,000 Surety Bond. Who needs this bond and why does the state of NC require it?

The North Carolina irrigation contractors license bond is a requirement for any contractor wishing to obtain the NC irrigation contractors license. No exceptions there. If you want the license, you will need the bond.

But why does the state of North Carolina want each licensed contractor to have this NC irrigation license bond? Well, the answer is that if you break the law in the process of installing an irrigation system, and if your actions cause a loss for your clients, the state of NC wants to know that you have some surety that these problems you have caused will be solved. To that end, they have asked for this bond. The bond has a limit of $10,000 and it allows direct action against the bond company for losses caused as a result of your violation of the law.

Remember, the irrigation license bond is not insurance per se. It is a financial guaranty that you will respond and correct the problems you may have caused by violation of the new laws. But if the bonding company has to pay a claim, they will have rights to a judgment against you for that same claim. They will then own the claim that your client had against you.

While the bond is a requirement of the licensing process, it is not designed to protect your assets from loss. Every irrigation contractor should have general liability insurance, workers compensation insurance as well as commercial auto and perhaps even equipment and tools coverage. At Clinard Insurance Group, in Winston Salem, NC we specialize in helping all kinds of landscaping contractors with their insurance needs. If you have any questions about the nc irrigation contractors license bond or about your other insurance needs, please visit us on line at our landscapers site, or call us, toll free at 877-687-7557.
The source information for this article was pulled from www.insuranceanswerguy.com.

NC Irrigation Contractors – Are You Grandfathered In?

If you are installing irrigation systems in North Carolina and you want to continue to do it after June 29, 2009, then you will need to get your NC Irrigation Contractors License. One of the requirements for this license is that you pass a test which will test your knowledge of installation and repair best practices for irrigation systems.. But for some contractors there is a way around the test. This falls under the grandfather clause.

Basically, there are 3 sections under the grandfather clause that might allow a contractor to avoid taking this test. They are referred to as Section 2, Section 3 and Section 4.

Section 2 allows those who had previously obtained a CIC (Certified Irrigation Contractor) designation or a CID (Certified Irrigation Designer) designation to avoid taking this test. Of course those with this status will have to meet all of the other qualifications for licensure.

Section 3 allows anyone who is a registered landscape contractor under Chapter 89D of the General Statutes or any licensed plumbing contractor under Article 2 of Chapter 87 to avoid the test requirement. This particular grandfathering rule has some irrigation contractors frustrated and rightly so. Installing irrigation systems in a manner that will conserve water and still properly nurish the plants they are designed to water is not necessarily something a plumbing contractor would understand or have experience doing. If the goal of this new license is to make sure that we clean up the less experienced irrigation system installers, then this grandfather clause would seem to work at cross purposes with the overall goals of this license.

Section 4 allows anyone who can document 10 years in business as an irrigation contractor as of Jan 1, 2009 to avoid the test. The documentation process will be rigorous to be sure. While I understand why this section was inserted in the law, I think like section 3, this may not serve the public in the way that this law was designed to do. If you were a poor installer without skills in the first place, then perhaps you should be forced to take the test and learn the techniques that help irrigation systems conserve water.

In addition to the test, this license will require the irrigation contractors to submit a bond to the state of North Carolina. To get your NC Irrigation Bond set up, visit us on the web at http://www.ncirrigationbond.com. At Clinard Insurance Group, we specialize in helping landscaping contractors of all stripes and we can help you get this bond set up in 9 minutes or less and get you off the phone and back to work serving your clients. If you want more information on all kinds of insurance for landscapers, please visit our landscape contractors web site, or call us, toll free, at 877-687-7557.

Information for this article can be found at http://www.insuranceanswerguy.com