Oklahoma Electrical Contractor Bond: A Comprehensive Guide

January 15th, 2021

This guide provides information for insurance agents to help contractors on Oklahoma Electrical Contractor bonds

At a Glance:

• Average Cost: $100 per year
• Bond Amount: $5,000
• Who Needs It: All individuals and businesses seeking to obtain an Electrical Contractor License in the State of Oklahoma
• Purpose: To ensure the public will receive compensation for any damages should the contractor fail to comply with licensing law
• Who Regulates Electrical Contractors in Oklahoma: The Oklahoma Construction Industries Board (CIB)

Background

Oklahoma Statute 158:40-5-3 requires all electrical contractors operating in the state to obtain a license with the CIB. The Oklahoma legislature enacted the licensing laws and regulations to ensure that contractors engage in ethical business practices. In order to provide financial security for the enforcement of the licensing law, contractors must purchase and maintain a $5,000 electrical contractor surety bond to be eligible for licensure.

What is the Purpose of the Oklahoma Electrical Contractor Bond?

Oklahoma requires contractors to purchase the Electrical Contractor Bond as part of the application process to obtain an electrical contractor license. The bond ensures that the public will receive compensation for financial harm if the contractor fails to comply with the licensing regulations. In short, the bond is a type of insurance that protects the public if the contractor breaks licensing laws.

How Can an Insurance Agent Obtain an Oklahoma Electrical Contractor Surety Bond?

BondExchange makes obtaining an Oklahoma Electrical Contractor Bond easy. Simply login to your account and use our keyword search to find the “contractor” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.

At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

Is a Credit Check Required for the Oklahoma Electrical Contractor Bond?

No, a credit check is not required for the Oklahoma Electrical Contractor Bond. Because this bond is considered relatively low-risk, the same low rate is offered to all electrical contractors in Oklahoma.

How Much Does the Oklahoma Electrical Contractor Bond Cost?

The $5,000 Oklahoma Electrical Contractor Bond costs just $100 per year

How Does Oklahoma Define “Electrical Contractor”?

To paraphrase Oklahoma Statute 158:40-1-2, an electrical contractor is an individual who is capable of planning, installing or supervising the installation of electrical facilities as an independent business.

How Do Electrical Contractors Apply for a License in Oklahoma?

Contractors in Oklahoma must navigate several steps to secure their electrical contractor license. Below are the general guidelines, but contractors should refer to the CIB’s licensing page for details on the process.

License Period – The Oklahoma Electrical Contractor License is valid for three years from the date of issuance and must be renewed before the expiration date

Step 1 – Determine the License Type

Oklahoma requires electrical contractors to obtain specific licenses corresponding to the nature in which the contractor’s business operates. Below are the different types of the Oklahoma Electrical Contractor License:

• • Unlimited – Can perform any and all electrical contract work
  • Residential – Only able to perform electrical contract work for residential homes
  • Limited – Is an owner, officer, or partner in an electrical firm and is unable to perform duties as an electrical apprentice or journeyman

Step 2 – Meet the Experience Requirements

Applicants for an electrical contractor license must have the necessary experience for the license type being applied for. Below are the experience requirements required to obtain an Oklahoma electrical contractor license:

• • Unlimited – 12,000 total verifiable hours of work experience:
    • 4,000 hours as a licensed unlimited journeyman
    • 6,000 hours in commercial industrial work
    • 2,000 hours may be satisfied through formal education
  • Residential – 8,000 total verifiable hours of work experience:
    • 4,000 hours as a residential or unlimited journeyman contractor
    • 4,000 as an apprentice or 3,000 hours as an apprentice and 1,000 hours of formal education
  • Limited – Has a degree in electrical engineering and 8,000 hours of experience or has 16,000 hours of experience

Step 3 – Purchase a Surety Bond

Electrical contractors will need to purchase and maintain a $5,000 electrical contractor surety bond

Step 4 – Purchase Insurance

Electrical contractors must purchase liability insurance with a minimum limit of $50,000

*Schools, hospitals, and government agencies may submit an Electrical Affidavit requesting exemption from the bond and insurance requirements

Step 5 – Complete the Application

All electrical contractors regulatory license applications should be mailed to:

Construction Industries Board
2401 NW 23rd, Suite 2F
Oklahoma City, OK 73107

Contractors must complete the application, including the following steps:

5.a Experience Affidavit – Contractors will need to submit affidavits filled out and signed by previous employers who can verify the contractor’s work experience

5.b Fees – Contractors must submit a $330 application fee when submitting their license application

Step 6 – Pass the Exam

Once the contractor has submitted their application, they will be able to register for and complete their license examination. Contractors can learn more about the exam requirements here.

How Does an Oklahoma Electrical Contractor Renew Their License?

Electricals contractors can mail their completed renewal application, including a $200 renewal fee, to the following address:

Construction Industries Board
2401 NW 23rd, Suite 2F
Oklahoma City, OK 73107

Electrical contractors will need to complete 6 hours of continuing education each renewal period. A list of continuing education course providers can be found here.

What Are the Insurance Requirements for the Oklahoma Electrical Contractor License?

The State of Oklahoma requires electrical contractors to purchase liability insurance with a minimum limit of $50,000. Contractors will need to purchase and maintain a $5,000 surety bond.

How Do Oklahoma Electrical Contractors File Their Bond With The Oklahoma CIB?

Contractors should mail the completed bond form, including the power of attorney, to the following address:

Construction Industries Board
2401 NW 23rd, Suite 2F
Oklahoma City, OK 73107

The electrical contractor surety bond requires signatures from both the surety company that issues the bond and the contractor. The surety company should include the following information on the bond form:

• Legal name of the entity/individual(s) buying the bond
• Surety company’s name
• The contractor’s license type

What Can Contractors Do to Avoid Claims Against the Oklahoma Electrical Contractor Bond?

To avoid claims on the Electrical Contractor Bond, contractors must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:

• Honor all contractual obligations when completing a project
• Do not engage in any acts of fraud
• Pay all taxes and fees

What Other Insurance Products Can Agents Offer Electrical Contractors in Oklahoma?

Oklahoma requires electrical contractors to obtain liability insurance. Bonds are our only business at BondExchange, so we do not issue liability insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.

How Can Insurance Agents Prospect for Oklahoma Electrical Contractor Customers?

Oklahoma conveniently provides a public database to search for active electrical contractors in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

What other Contractor License Bonds are Required in Oklahoma?

Contractors in Oklahoma will need to obtain specific bonds correlating with their license type. Below are all the different contractor licensing bonds required by the State of Oklahoma:

• Soil Profiler – $10,000 bond limit
• Mechanical Contractor – $5,000 bond limit
• Plumbing Contractor – $10,000 bond limit
• Septic Tank Installer – $10,000 bond limit