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Washington Plumbing Contractor Bond

The Washington State Legislature passed laws in June 2021 changing the requirements for plumbing contractors statewide. Previously, they needed a "specialty plumbing" registration to work legally. Now, plumbing contractors must be fully licensed and meet new requirements for obtaining that license, which includes getting a type of surety bond known as a Washington plumbing contractor bond.

What is a Washington Plumbing Contractor Bond?

This type of surety bond holds a plumbing contractor accountable when they don't follow Washington State laws and codes of conduct for the plumbing industry. If that misconduct results in damages, the negatively affected party may file a claim against the surety bond seeking damages.

Provided that the claim holds up under investigation, the surety agency that backs the bond guarantees a full settlement without further delay. However, the surety agency does not have the final financial liability for that claim – the bonded plumbing contractor does and must repay the surety the amount of any settlement plus interest and fees.

Who are the Parties Involved in a Washington Plumbing Contractor Surety Bond?

A surety bond agreement involves three distinct parties, each with their own rights and responsibilities:

  • Principal – The plumbing contractor who must obtain the bond, keep it active and in good standing, and pay for any valid claims filed against the bond.
  • Obligee – The Washington State Department of Labor and Industries, the agency that regulates plumbing contractors and created the new licensing requirement. The obligee may file claims against the bond if the terms of the bond – eg. state plumbing laws – aren't met by the principal.
  • Surety – The agency that issues a bond to the principal, investigates claims, and pays settlements to the obligee. The surety will not settle invalid claims. When it does settle, however, the principal must repay the debt in full.

Who Needs a Washington Plumbing Contractor Surety Bond?

Any plumbing contractor who previously worked under the "specialty plumbing" registration will need to obtain one of these surety bonds to meet the new licensure requirements. General contractors who want to work as both general and plumbing contractors will need to have separate bonds, meaning the general contractor bond will not satisfy the Washington plumbing license bond requirement. For help understanding how these new requirements work, count on Viking Bond Service to make sense of everything and supply fast bond quotes on demand.

How to Get a Washington Plumbing Contractor Bond

Surety bond requirements may be a new obligation for Washington plumbing contractors, but meeting them is a quick and simple process with Viking Bond Service. Follow the steps below to obtain a Washington plumbing contractor surety bond and you're well on your way to completing the license requirements so your business can operate legally.

  • Find a Surety Agency – Look for one that can issue this relatively new type of bond and become a long-term bond partner.
  • Submit a Bond Application – It will ask for information about your business, background, and personal finances.
  • Submit to a Credit Check – Underwriters will examine your credit score and history to evaluate your risk of causing claims and leaving debts unpaid.
  • Receive a Bond Quote – The surety will use your application materials to quote you a personalized price for the bond premium.
  • Pay the Premium – Once you pay the premium, the bond activates immediately and the surety provides documentation proving you've met the Washington plumbing license bond requirement.

How Much Does a Washington Plumbing License Bond Cost?

The bond must provide $6,000 in coverage, meaning the surety agency that backs the bond agrees to pay up to $6,000 to settle claims. The actual cost of the bond will be a small percentage of the coverage amount. That amount depends on the bond seeker's credit score and bonding history, as rates will be higher for people with challenged credit. Nevertheless, thanks to a special program from Viking Bond Service, more people with credit issues can obtain the surety bonds they need at fair rates.

How Do You Renew a Washington Plumbing Contractor Bond?

Plumbing contractors will need to keep their surety bond active and in good standing or it will invalidate their license. This type of bond requires annual renewal, and during the renewal process, underwriters will examine any changes to the bondholder's credit and adjust the premium price accordingly. These premiums could be lower or higher than before. One way to reduce the potential for higher bond costs over time is to steadily improve credit standing each year.

Why Choose Viking Bond Service?

When a professional needs a surety bond to keep their business up and running, it's important to choose the right bond partner. The wrong choice could lead to lots of unnecessary costs and hassles – or worse. That's why plumbing contractors across the country choose Viking Bond Service. We make it simple to secure all the bonds a plumber may need – including the new Washington plumbing license bond. Count on us to provide fast quotes, fair prices, and all the good information you ever need.

Request a Quote for a Washington Plumbing Contractor Bond

Washington plumbing contractors need a bond right now to meet the new licensing requirements. Get a quote for a bond in as little as 24 hours by completing our easy online application. If you have questions or want more information about anything, don't hesitate to call 1-888-278-7389 or contact us for a quick response.

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