Idaho Plumbing Contractor License Bond: A Comprehensive Guide

February 8, 2021

This guide provides information for insurance agents to help contractors on Idaho Plumbing Contractor License bonds

At a Glance:

• Average Cost: $100 per year
• Bond Amount: $2,000
• Who Needs It: All individuals and business entities who act as plumbing 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 Plumbing Contractors in Idaho: Idaho Division of Building Safety Plumbing Board

Background

Idaho Code 54-2602 requires all plumbing and specialty contractors operating in the state to obtain a license with the Division of Building Safety Plumbing Board. The Idaho 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 license law, contractors must purchase and maintain a Plumbing Contractor License Bond to be eligible for licensure.

What is the Purpose of the Idaho Plumbing Contractor License Bond?

Idaho requires contractors to purchase the Plumbing Contractor / Specialty Contractor License Bond as part of the application process for the 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 Idaho Plumbing Contractor License Surety Bond?

BondExchange makes obtaining an Idaho Plumbing Contractor License 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 Plumbing Contractor License Bond?

No, a credit check is not required for the Idaho Plumbing Contractor License 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 Plumbing Contractor License Bond?

The $2,000 Idaho Plumbing Contractor License Bond costs just $100 per year

How Does Idaho Define “Plumbing Contractor”?

To paraphrase Idaho Revised Statute 54-2603, a plumbing contractor is any person or business entity who performs work related to the, construction, installation, improvement, extension and alteration of all piping, fixtures, appliances and appurtenances in connection with any plumbing system

How Do Plumbing Contractors Apply for a License in Idaho?

Plumbers in Idaho must navigate several steps to secure their contractors license. Below are the general guidelines, but contractors should refer to the licensing statutes for details on the process.

License Period – The Idaho Plumbing 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

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

• • Type A: Plumbing Licenses – 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.
    • Plumbing Apprentice – Any person who is learning the trade of Plumbing journeyman.
    • Plumbing Journeyman – Any person who performs or supervises the installation, improvement, extension, alteration or repair of Plumbing systems under direction of a Plumbing contractor.
    • Plumbing Contractor – Any person or entity providing or offering to provide plumbing contracting services, including but not limited to submitting a bid.
  • Type B: Specialty Plumbing Licenses – Any person or entity providing or offering to provide any service or work including but not limited to installing, maintaining or repairing specialty Plumbing systems or subsystems. The license types for specialty Plumbing involve Appliance Specialty, Water Pump, and Mobile Home. A specialty Plumbing contractor license types are found below:
    • Specialty Plumbing Apprentice – Any person who is learning the trade of Specialty Plumbing journeyman.
    • Specialty Plumbing Journeyman – Any person who performs or supervises the installation, improvement, extension, alteration or repair of Specialty Plumbing systems under the direction of a Specialty Plumbing contractor.
    • Specialty Plumbing Contractor – Any person or entity providing or offering to provide specialty plumbing contracting services, including but not limited to submitting a bid.

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

Step 2 – Meet the Experience Qualifications

All plumbing contractor license applicants must be at least 18 years old and have been a licensed journeyman for a minimum of 30 months

Step 3 – Purchase a Surety Bond

Contractors must purchase and maintain a $2,000 Plumbing Contractor License surety bond

Step 4 – Purchase Insurance

Plumbing 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 license applications should be mailed to the following address:

STATE OF IDAHO DIVISION OF BUILDING SAFETY
1090 East Watertower Street, Suite 150
Meridian, Idaho 83642

All license applications must be signed be and notarized. See Step 1 to obtain an application form. Contractors must pay a $22.50 fee when submitting their application

Step 6 – Pass the Exam

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

How Does an Idaho Plumbing Contractor Renew Their License?

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 $108 renewal fee when renewing their license. The Idaho Plumbing Contractor license is valid for three years from the date of issuance and must be renewed before the expiration date

What Are the Insurance Requirements for the Idaho Plumbing Contractor License?

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

How Do Idaho Plumbing Contractors File Their Bond?

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

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

The Plumbing contractor license 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 Plumbing Contractors Do to Avoid Claims Against the Idaho Plumbing Contractor License Bond?

To avoid claims on the Plumbing Contractor License Bond, contractors must follow all license 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 Plumbing Contractors in Idaho?

Idaho requires all plumbing 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 Plumbing Contractor Customers?

Idaho conveniently provides a public database to search Plumbing 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.