Idaho HVAC Contractor / Specialty Contractor Certification Bond: A Comprehensive Guide

February 8, 2021

This guide provides information for insurance agents to help contractors on Idaho HVAC Contractor / Specialty Contractor Certification bonds

At a Glance:

• Average Cost: $100 per year
• Bond Amount: $2,000
• Who Needs It: All individuals and businesses that act as HVAC contractors and specialty contractors in the State of Idaho
• Purpose: To ensure the public will receive compensation for any damages should the contractor fail to comply with contractor licensing law
• Who Regulates HVAC and Specialty Contractors in Idaho: The Idaho Division of Building Safety HVAC Board

Background

Idaho Code 54-5007 requires all HVAC and specialty contractors operating in the state to become certified through the Division of Building Safety HVAC Board. The Idaho legislature enacted certification laws and regulations to ensure that contractors engage in ethical business practices. In order to provide financial security for the enforcement of the certification law, contractors must purchase and maintain a $2,000 HVAC Contractor / Specialty Contractor Certification Bond to be eligible for licensure.

What is the Purpose of the Idaho HVAC Contractor / Specialty Contractor Certification Bond?

Idaho requires contractors to purchase the HVAC Contractor / Specialty Contractor Certification Bond as part of the application process for obtaining a contractor certification. The bond ensures that the public will receive compensation for financial harm if the contractor fails to comply with the certification regulations. In short, the bond is a type of insurance that protects the public if the contractor breaks certification laws.

How Can an Insurance Agent Obtain an Idaho HVAC Contractor / Specialty Contractor Certification Surety Bond?

BondExchange makes obtaining an Idaho HVAC Contractor / Specialty Contractor Certification 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 Idaho HVAC Contractor / Specialty Contractor Certification Bond?

No, a credit check is not required for the Idaho HVAC Contractor / Specialty Contractor Certification Bond. Because this bond is considered relatively low-risk, the same low rate is offered to all contractors in Idaho.

How Much Does the Idaho HVAC Contractor / Specialty Contractor Certification Bond Cost?

The $2,000 Idaho HVAC Contractor / Specialty Contractor Certification Bond costs just $100 per year

How Does Idaho Define “HVAC Contractor”?

To paraphrase Idaho Revised Statute 54-5003(3), a HVAC contractor is any person or business entity who fabricates, installs, maintains, services and repairs any heating ventilation and air conditioning systems.

How Do HVAC and Specialty Contractors Apply for Certification in Idaho?

HVAC and specialty contractors in Idaho must navigate several steps to secure their contractor certification. Below are the general guidelines, but contractors should refer to the certification statutes for details on the process.

Certification Period – The Idaho HVAC and Specialty contractor certification is valid for one year from the date of issuance and must be renewed before the expiration date

Step 1 – Determine the Certificate Type

Idaho requires contractors to obtain specific certification corresponding to the nature in which the contractor’s business operates. Below are the different types of the Idaho HVAC and Specialty Contractor Certification:

• • Type A: HVAC Certification – Any person or entity providing or offering to provide any service or work including but not limited to installing, maintaining or repairing heating, ventilation or air conditioning appliances, or gas-fired equipment that requires special venting or gas supply piping systems or subsystems.
    • HVAC Apprentice – Any person who is learning the trade of HVAC journeyman.
    • HVAC Journeyman – Any person who performs or supervises the installation, improvement, extension, alteration or repair of HVAC systems under direction of a HVAC contractor.
    • HVAC Contractor – Any person or business entity who provides or offers to provide any service or work, including but not limited to installing, maintaining or repairing HVAC systems or subsystems.
  • Type B: Specialty HVAC Certification – Any person or entity providing or offering to provide any service or work including but not limited to installing, maintaining or repairing specialty HVAC systems or subsystems. The certificate types for specialty HVAC contractors involve hearth, waste oil , fuel gas piping, and LP gas limited heating. All specialty HVAC contractor certificate types are found below:
    • Specialty HVAC Apprentice – Any person who is learning the trade of Specialty HVAC journeyman.
    • Specialty HVAC Journeyman – Any person who performs or supervises the installation, improvement, extension, alteration or repair of Specialty HVAC systems under direction of a Specialty HVAC contractor.
    • Specialty HVAC Contractor – Any person or entity providing or offering to provide any service or work including but not limited to installing, maintaining or repairing specialty HVAC systems or subsystems.

The following steps focus solely on how to obtain a contractor certification. Apprentice and journey man applicants are not required to purchase a surety bond and have a less stringent application process.

Step 2 – Meet the Experience Qualifications

HVAC and Specialty Contractors in Idaho must meet the following minimum requirements to be eligible for certification:

• • Be at least 18 years old
  • Minimum 1 year experience working as a registered HVAC apprentice / HVAC specialty apprentice under a HVAC journeyman or HVAC specialty journeyman
  • Completed a board approved training course
  • Minimum of 60 hours of education in a related field
  • Have passed the journeyman exam
  • Has been a certified journeyman for at least two years
  • Pass contractor examination

Step 3 – Purchase a Surety Bond

Contractors must purchase and maintain a $2,000 HVAC Contractor / Specialty Contractor Certification surety bond

Step 4 – Purchase Insurance

HVAC and specialty contractors are required to purchase liability insurance with a minimum limit of $300,000. Contractors with employees will also need to purchase workers’ compensation insurance.

Step 5 – Complete the Application

All regulatory certification applications should be mailed to the following address:

Division of Building Safety
1090 E Watertower Street, Ste 150
Meridian, ID 83642

All certification applications must be signed be and notarized. See Step 1 to obtain an application form. Contractors must pay a $35 fee when submitting their application

Step 6 – Pass the Exam

After submitting their application, contractors will receive instructions on how to take the required certification exam. Contractors can find more information regarding the certification exam here.

How Do Idaho HVAC and Specialty Contractors Renew Their Certification?

Prior to their license certification expiration date, contractors should receive a renewal notice containing instructions on how to renew their license. Contractors must pay the $150 renewal fee when renewing their certification. The Idaho HVAC and Specialty contractor certification is valid for one year from the date of issuance and must be renewed before the expiration date.

What Are the Insurance Requirements for the Idaho HVAC and Specialty Contractor Certification?

The State of Idaho requires HVAC and specialty contractors to purchase liability insurance with a minimum limit of $300,000. Contractors with employees will also need to purchase workers’ compensation insurance. All HVAC and specialty contractors must purchase and maintain a $2,000 surety bond

How Do Idaho HVAC and Specialty Contractors File Their Bond?

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

Division of Building Safety
HVAC Bureau
1090 E. Watertower St., STE 150
Meridian, ID 83642

The HVAC Contractor / Specialty Contractor Certification Bond 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 and address of the entity/individual(s) buying the bond
• Surety company’s name
• Bond amount
• Date the bond is signed
• Notary signatures

What Can HVAC Contractors Do to Avoid Claims Against the Idaho HVAC Contractor / Specialty Contractor Certification Bond?

To avoid claims on the HVAC Contractor / Specialty Contractor Certification Bond, contractors must follow all certification regulations in the state, including some of the most important issues below that tend to cause claims:

• Pay all employee wages
• Pay all subcontractors and vendors
• Do not engage, or allow representatives of the business to engage, in any acts of fraud

What Other Insurance Products Can Agents Offer HVAC and Specialty Contractors in Idaho?

Idaho requires all HVAC and specialty contractors to obtain liability insurance liability insurance with a minimum limit of $300,000. Contractors with employees must also purchase worker’s compensation 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 Idaho HVAC and Specialty Contractor Customers?

Idaho conveniently provides a public database to search for active HVAC and specialty 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.