Tree Cutting or Stump Grinding Contractor ($10,000) Bond - City of Ozark, AL in Alabama

Brief Summary

Ozark will not issue a business license for tree work until you show a performance bond and proof of liability insurance. Both are needed. The bond for this license is $10,000, and you pay a premium instead of tying up that cash. Having both in hand before you apply keeps the license from stalling at the counter.

The City of Ozark license fee schedule, Sec. 11-23 of the Ozark Code of Ordinances, requires a performance bond and proof of liability insurance before a license is issued to anyone engaged in trimming trees. The bond for tree cutting and stump grinding contractors is $10,000, runs to the City of Ozark, and is filed with the Revenue Department along with the business license application.

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How to Apply for a Tree Cutting or Stump Grinding Contractor ($10,000) Bond:

• Get a certificate of liability insurance. Ozark requires it in addition to the bond.
• Use the legal business name exactly as it will appear on the Ozark business license application.
• Provide owner name, home address and Social Security number for the credit review.
• Complete the bond application, pay the premium and receive the signed $10,000 bond.
• File the bond, insurance certificate and license application with the City of Ozark Revenue Department.
• Renew by January 31 each year to avoid delinquency.

Detailed Information About the Alabama Tree Cutting or Stump Grinding Contractor ($10,000) Bond:

Two things, not one

The most common mistake is treating the bond and the insurance as interchangeable. Ozark Code Sec. 11-23 lists tree surgeons, meaning each person engaged in trimming trees, and states that a performance bond and proof of liability insurance are required for the license to be issued. Liability insurance pays for damage to property or people. The bond guarantees your performance to the city. Ozark wants both.

License fees and who needs one

The same schedule lists the license fee at $50 for a local business and $100 for an itinerant one. The city's Revenue page says a business license is required for anyone doing business within the city limits or police jurisdiction of Ozark, so an out of town crew working in Ozark needs one too.

What the bond guarantees

The $10,000 bond names the City of Ozark as obligee and guarantees your performance to the city under the terms of the bond form. Ozark Code Sec. 10-26 also makes tree surgeons and others working on private property responsible for removing the residue and rubbish their work leaves behind. If the city has a valid claim, the surety pays it and you repay the surety.

Term and renewal

Ozark business licenses expire December 31 each year. Renewals are due January 1 and become delinquent after January 31. Keep the bond in force for each license year, and confirm the current bond form with the Ozark Revenue Department before the bond is issued.

Eligibility and Requirements for a Alabama Tree Cutting or Stump Grinding Contractor ($10,000) Bond:

• City of Ozark named as obligee.
• Bond amount of $10,000.
• Proof of liability insurance, required by Ozark Code Sec. 11-23 alongside the bond.
• License fee of $50 for a local business or $100 for an itinerant business, per Sec. 11-23.
• Owner credit review, which shapes the premium.

Alabama Tree Cutting or Stump Grinding Contractor ($10,000) Bond FAQs:

Official and Additional Resources for the Alabama Tree Cutting or Stump Grinding Contractor ($10,000) Bond: