Oregon Sewage Disposal Service Bond: A Comprehensive Guide

January 13th, 2021

This guide provides information for insurance agents to help businesses on Oregon Sewage Disposal Service bonds

At a Glance:

• Average Cost: $100 per year
• Bond Amount: 
  • $5,000 for pumper only businesses
  • $15,000 for installer only or combined installer/pumper businesses
• Who Needs It: All businesses seeking to obtain a sewage disposal service license in the State of Oregon
• Purpose: To ensure the public will receive compensation for any damages should the business fail to comply with licensing law
• Who Regulates Sewage Disposal Service Businesses in Oregon: The Oregon Department of Environmental Quality (DEQ)

Background

Oregon revised statute 454.695 requires sewage disposal service businesses operating in the state to obtain a license with the DEQ. The Oregon legislature enacted the licensing laws and regulations to ensure that businesses engage in ethical practices. In order to provide financial security for the enforcement of the licensing law, businesses must deposit cash or purchase and maintain either a $15,000 or $5,000 sewage disposal service surety bond to be eligible for licensure.

What is the Purpose of the Oregon Sewage Disposal Service Bond?

Oregon requires businesses to purchase the Sewage Disposal Service Bond as part of the application process to obtain a sewage disposal service license. The bond ensures that the public will receive compensation for financial harm if the business fails to comply with the licensing regulations. In short, the bond is a type of insurance that protects the public if the business breaks licensing laws.

How Can an Insurance Agent Obtain an Oregon Sewage Disposal Service Surety Bond?

BondExchange makes obtaining an Oregon Sewage Disposal Service 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 Oregon Sewage Disposal Service Bond?

No, a credit check is not required for the Oregon Sewage Disposal Service Bond. Because this bond is considered relatively low-risk, the same low rate is offered to all sewage disposal service businesses in Oregon.

How Much Does the Oregon Sewage Disposal Service Bond Cost?

The Oregon Sewage Disposal Service Bond costs just $100 per year.

How Does Oregon Define “Sewage Disposal Service”?

Oregon revised statute 454.605 defines a sewage disposal service as any of the following actions:

• The construction of subsurface sewage disposal systems, alternative sewage disposal systems or any part thereof
• The pumping out or cleaning of subsurface sewage disposal systems, alternative sewage disposal systems or nonwater-carried sewage disposal facilities.
• The disposal of materials derived from the pumping out or cleaning of subsurface sewage disposal systems, alternative sewage disposal systems or nonwater-carried sewage disposal facilities
• Grading, excavating and earthmoving work

How Do Businesses Apply for a Sewage Disposal Service License in Oregon?

Businesses in Oregon must navigate several steps to secure their sewage disposal service license. Below are the general guidelines, but businesses should refer to the DEQ’s licensing page for details on the process.

License Period – The Oregon Sewage Disposal Service License is valid for three years and expires on June 30 of the third year it was issued

Step 1 – Determine the License Type

Oregon requires sewage disposal service businesses to obtain a specific license corresponding to the nature in which the business operates. Below are the different types of the Oregon Sewage Disposal Service License.

• • Installer – Constructs or installs onsite systems
  • Pumper – Pumps out and cleans onsite systems and disposes of the waste
  • Installer/Pumper – Is authorized to perform work as both an installer and pumper

Step 2 – Become Certified (Installer Only)

Businesses seeking to obtain either the installer or installer/pumper license will need to have at least one member of their organization complete a one day certification course prior to receiving their license. Businesses can register for the certification course by contacting the Chemeketa Community College at 503-399-5181.

Step 3 – Deposit Cash or Purchase a Surety Bond

Sewage disposal service businesses will need to either deposit cash or purchase and maintain a Sewage Disposal Service surety bond. The bond limit is determined by the license type being applied for:

• • $5,000 for Pumper License applicants
  • $15,000 for Installer or Installer/Pumper License applicants

Step 4 – Complete the Application

All sewage disposal service regulatory license applications should be mailed to:

Department of Environmental Quality
Onsite Licensing 165 E. 7th Ave., Suite 100
Eugene OR 97401-3437

Businesses must complete the application, including the following steps:

4.a Septage Management Plan Worksheet – Applicants for the Pumper or Installer/Pumper License will need to submit a Septage Management Plan Worksheet with their application. This form details the business’s plan for all septage handling activities.

4.b Equipment Inspection – Applicants for the Pumper or Installer/Pumper License must submit a Pumping Equipment Inspection Form for each vehicle utilized for the purpose of performing pumping services. License applicants will need to contact the DEQ to schedule an inspection of each vehicle.

4.c Business Classification – Applicants will need to state the operation structure of their business (sole proprietorship, LLC, corporation etc) and list all owners and officers on their application

Step 5 – Pay Fees

Businesses will need to pay a $1,414 application fee, as well as an additional $16 fee for every vehicle requiring inspection

How Does an Oregon Sewage Disposal Service Business Renew Their License?

Businesses should mail all renewal applications to the following address:

Department of Environmental Quality
Onsite Licensing 165 E. 7th Ave., Suite 100
Eugene OR, 97401-3437

Sewage Disposal Service Businesses should receive renewal instructions prior to their license expiration date. The Oregon Sewage Disposal Service License is valid for three years and expires on June 30 of the third year it was issued.

What Are the Insurance Requirements for Sewage Disposal Service Businesses in Oregon?

The State of Oregon does not require sewage disposal service businesses to obtain any form of liability insurance. Businesses will need to deposit cash or purchase and maintain either a $5,000 or $15,000 Sewage Disposal Service surety bond.

How Do Oregon Sewage Disposal Service Businesses File Their Bond With The Oregon DEQ?

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

Department of Environmental Quality
Onsite Licensing 165 E. 7th Ave., Suite 100
Eugene OR, 97401-3437

The sewage disposal service surety bond requires signatures from both the surety company that issues the bond and the business owner(s). 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
• Date the bond goes into effect
• Date the bond is signed

What Can Businesses Do to Avoid Claims Against the Oregon Sewage Disposal Service Bond?

To avoid claims on the Sewage Disposal Service Bond, businesses must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:

• Adhere to all safety protocols when performing work
• Provide each client with the name and address of the surety company who issued you the bond

What Other Insurance Products Can Agents Offer Sewage Disposal Service Businesses in Oregon?

Oregon does not require sewage disposal service businesses to obtain any form of liability insurance. However, many businesses will seek to obtain liability insurance anyway. 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 Oregon Sewage Disposal Service Business Customers?

Oregon conveniently provides a public database to search for active sewage disposal service businesses 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 Oregon?

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

• Contractor License – Bond limit ranges between $10,000 – $75,000
• Public Works – $30,000
• Landscape Contractor – Bond limit ranges between $3,000 – $20,000