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

After June 29^th, 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.