Surety Bond Encyclopedia

Electrical Contractor ($10,000) Bond - City of Birmingham, AL in Alabama

Brief Summary

Birmingham will not issue an electrician's business license until a $10,000 bond is on file, written on the city's own bond form. Bring the right form and a current Master Electrician's Certification Card and the bond is a quick, routine filing that keeps your license in good standing year after year.

The City of Birmingham requires a $10,000 bond from any person, firm or corporation doing electrical work or soliciting electrical work inside the city. The bond is executed on a form provided by the City of Birmingham Finance Department, names the City of Birmingham as obligee, and is approved by the Director of Finance. It is filed with the electricians business license, which also requires a current Birmingham Master Electrician's Certification Card.

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How to Apply for a Electrical Contractor ($10,000) Bond:

  • Hold a current, valid City of Birmingham Master Electrician's Certification Card.
  • Have the legal business name exactly as it will appear on the Birmingham electricians business license.
  • Owner name, home address and Social Security number for the surety's credit review.
  • Complete the bond application and review the quoted premium.
  • Pay the premium and receive the $10,000 bond executed on the City of Birmingham Electrician's Bond form.
  • File the bond with the city for approval by the Director of Finance along with the Schedule 096 business license application.

Detailed Information About the Alabama Electrical Contractor ($10,000) Bond:

Who has to post this bond

Birmingham licenses electrical businesses under business license Schedule 096, Electricians. Every person, firm or corporation doing business or soliciting electric work in the city needs that license, and the schedule makes two things a condition of getting it. The first is a $10,000 bond executed on a bond form provided by the City of Birmingham Finance Department. The second is a current, valid City of Birmingham Master Electrician's Certification Card.

The amount is a flat $10,000. What changes with the size of your shop is the license fee, not the bond. Schedule 096 sets the fee by how many master or journeyman electricians you employ, starting at $75 for one and rising to $250 for three and less than six.

What the bond actually guarantees

The city's Electrician's Bond form commits the contractor to three things. You will comply with the laws, ordinances and regulations that govern electrical work in Birmingham. You will pay the city every fee imposed under the Electrical Code no later than the 15th day of the month after the month the fee came due. And anyone injured in person or property by a violation can bring a claim on the bond.

Use the city form

A generic license bond will not do. The schedule calls for the city's own form, and the form carries a signature line for approval by the Director of Finance. Ask your surety to issue on the Birmingham Electrician's Bond form and confirm current filing steps with the Department of Planning, Engineering and Permits before the bond is issued.

Cancellation and renewal

The surety can end its liability by written notice, effective 15 days after the Director of Finance receives it. Liabilities that arose before the cancellation took effect are still covered. Birmingham business licenses expire on December 31 every year, renewals are due January 1, and general business licenses become delinquent after February 15. Keep the bond active for as long as you hold the license.

Eligibility and Requirements for a Alabama Electrical Contractor ($10,000) Bond:

  • Bond amount of exactly $10,000.
  • City of Birmingham named as obligee on the form provided by the City of Birmingham Finance Department.
  • Business name on the bond matching the license application.
  • Current Birmingham Master Electrician's Certification Card.
  • Owner credit review. Credit shapes the premium for most applicants rather than whether they qualify.

Alabama Electrical Contractor ($10,000) Bond FAQs:

Does the bond amount go up if I employ more electricians?

No. The bond is $10,000 regardless of size. The business license fee is what scales, from $75 with one master or journeyman electrician employed up to $250 for three and less than six.

Can I use any standard license bond form?

No. Schedule 096 requires the bond to be executed on a form provided by the City of Birmingham Finance Department, and the form is approved by the Director of Finance.

What can lead to a claim on this bond?

Failing to pay Electrical Code fees by the 15th of the following month, violating the city's electrical laws or ordinances, or causing injury to a person or property through such a violation.

How is the premium set?

The surety prices the bond from the owner's credit and business history. You pay a premium for the bond term instead of tying up $10,000 with the city.

Do I need to renew it every year?

Birmingham business licenses expire every December 31. The bond must stay in force for as long as you hold the license, so keep it active through each renewal.

Other City of Birmingham, AL Surety Bonds in Alabama

Building Wrecker's (Singular)Building Wrecker's Bond (Blanket)Gas/Butane or Propane Contractor ($2,500)Plumber and Gas Fitter ($10,000)

All Alabama Contractor bonds · All Alabama Electrical bonds · All City of Birmingham, AL bonds · All Alabama surety bonds