Overview of Alabama Surety Bonds
Surety bonds are frequently required in the state of Alabama of applicants for a business license. Bonds may also be required of contractors who wish to bid or perform on federal or state construction projects.
What’s the purpose of the bond?
Surety bonds are required as a form of guarantee that any bonded party will comply with state laws and regulations, such as the Code of Alabama, that concern their type of business.
Similarly, to perform work on certain construction projects, contractors are frequently required to obtain bonds that guarantee their compliance and performance according to the conditions of their project contract.
Bonds not only guarantee compliance but offer protection if the bonded party violates the conditions of the bond. If the bonded party violates the bond agreement and causes losses or damages, wronged parties can file a claim against the bond to request compensation.
See our detailed ‘What is a surety bond’ guide to learn more about how bonds work.
Read on for more information about the different types of surety bonds in Alabama, how much they cost and how you can apply.
Types of Alabama Bonds
There are three main types of surety bonds that are issued for the state of Alabama:
- license and permit bonds
- contract bonds
- court bonds
License & Permit Bonds
Alabama businesses who need to get licensed in order to operate lawfully are often required to obtain a license bond. To find out if you need to get bonded, contact the Alabama Department of Revenue or the Division which issues your type of business license.
This bond guarantees that you will conduct business in accordance with the provisions of the Alabama Code that apply to you.
If you are looking for a specific license bond in Alabama, you can search for your bond in the table below.
Find the Bond You Need
The table below contains a list of only the most popular surety bonds. If you can't find yours, fill out our online application and select "Not in the list".
|Contractor License (No P&P Language) Bond||State of Alabama Board for General Contractors||General Contractor License Bond||Apply Now|
|Contractor License (No P&P Language) Bond||City of Birmingham||City of Birmingham Contractor License Bond||Apply Now|
|Contractor License (No P&P Language) Bond||City of Dothan||(City of Dothan, AL) Contractor License Bond||Apply Now|
|Contractor License Performance & Payment (State) Bond||Board of Heating, Air Conditioning, & Refrigeratio||Heating, Air Conditioning, & Refrigeration Contrac||Apply Now|
|Contractor License Performance & Payment (State) Bond||Mobile Urban Development Department||Urban Development Department Bond||Apply Now|
|Contractor License Performance & Payment (State) Bond||State of Alabama Plumbers & Gas Fitters||Plumbing and or Gas Fitting Bond||Apply Now|
|Investment Advisor (Blue Sky) Bond||Securities Commission||Uniform Surety Bond||Apply Now|
|Professional Fund Raisers Bond||Office of the Attorney General||Prof. Fund Raiser or Comm. Co-Venturer||Apply Now|
|Insurance Surplus Lines Brokers Bond||Alabama Department of Insurance||Insurance Surplus Lines Broker||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||State of Alabama, State Banking Dept||SAFE Mortgage Act Bond||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||Dept. of Revenue||Motor Vehicle Dealer Bond||Apply Now|
|Auto & Mobile Home Dealers (Used Only, No New) Bond||Alabama Dept of Revenue||Used Motor Vehicle Dealer, Reconditioner, Rebuilde||Apply Now|
|Motor Vehicle (Non-Dealer, Not Listed) Bond||Alabama Department of Revenue||Designated Agent Bond||Apply Now|
|Motor Vehicle (Non-Dealer, Not Listed) Bond||Alabama Department of Revenue||Bond of Automotive Dismantler and Parts Recycler||Apply Now|
|Motor Vehicle (Non-Dealer, Not Listed) Bond||Manufactured Housing Commission||AMHC License/Permit||Apply Now|
|Motor Vehicle (Non-Dealer, Not Listed) Bond||Alabama D.O.R. Motor Vehicle Division||Designated Agent-Non Dealer Bond||Apply Now|
|Sport Permits Bond||ALABAMA ATHLETIC COMMISSION||Promoter's License Bond||Apply Now|
|Detectives Bond||City of Florence||Private Detective Bond (City of Florence, AL)||Apply Now|
|Medicare & Medicaid (Home Agencies, State) Bond||Alabama Medicaid Agency||Alabama Medicaid Agency Bond||Apply Now|
|Professional Licenses (All Other) Bond||State Of Alabama Real Estate Appraisers Board||Appraisal Management Company Registration||Apply Now|
|Professional Licenses (All Other) Bond||Alabama Department of Insurance||Corporate Surety - Bail Bond||Apply Now|
|Professional Licenses (All Other) Bond||Department of Agriculture & Industries||Subterranean Termite Eradication and Control Work||Apply Now|
|Professional Licenses (All Other) Bond||State of Alabama Dept. of Insurance||Service Contract Provider Bond||Apply Now|
|Schools (All) Bond||Department of Post Secondary Education||Private School Performance Bond||Apply Now|
|Schools (All) Bond||Department of Postsecondary Education||Private School Agents||Apply Now|
|Schools (All) Bond||Board of Cosmetology||School Property Bond||Apply Now|
|Alcohol (Retailers) Bond||Jefferson County Dept. of Revenue||Selling Alcoholic, Spirituous, Vinous or Fermented||Apply Now|
|Alcohol (All Others) Bond||City of Priceville||Alcohol Ordinance Tax of Fee Bond (Priceville, AL)||Apply Now|
|Utility Deposit Bond||ALABAMA POWER||Indemnity Bond for Electric Service and/or Steam H||Apply Now|
|Utility Deposit Bond||Alabama Gas Corporation||Indemnity Bond for Gas Service||Apply Now|
|Utility Deposit Bond||Huntsville Utilities||Huntsville Utilities Bond||Apply Now|
|Utility Deposit Bond||Florence Utilities, City of Florence AL||Florence Utilities Deposit Bond||Apply Now|
|Utility Deposit Bond||Decatur Utilities||Payment of Utility Bills Bond (Decatur Utilities)||Apply Now|
|Indemnity (Miscellaneous - Not Listed) Bond||Connie S. Harris||Private School Preformance Bond (Non-Degree Granti||Apply Now|
|Money Transmitter Bond||Alabama Securities Commission||Money Transmitter||Apply Now|
|Telemarketing/Phone Solicitor Bond||Office of the Attorney General||Telemarketing||Apply Now|
|Telemarketing/Phone Solicitor Bond||Office of the Attorney General, Consumer Protectio||Telemarketing Bond||Apply Now|
Under the federal Miller Act and the Alabama Little Miller Act, to perform on construction projects over certain dollar amounts, contractors need to obtain bid, performance, and payments bonds.
Court bonds are sometimes required by Alabama courts. When appealing a judgment, appellants may need to obtain an appeal bond. Fiduciaries in Alabama may also be required to post a fiduciary bond.
Can’t find what you are looking for? Call us at (866)-450-3412 to receive assistance and advice from one of our Alabama surety bond experts at Bryant Surety Bonds.
How Much Does it Cost to Get Bonded in Alabama?
How much your bond will cost is determined by the type of your bond and the bonding amount. All bonds have different amounts, and these are determined on a state level.
What is the difference between bond cost and bond amount?
The bond amount is the maximum amount of compensation guaranteed by the surety that issues your bond. In other words, this is the maximum amount of money the surety may provide to someone who files a claim against your bond. The cost of your bond is equal to a percentage of its amount.
For example, the Alabama auto dealer bond has a fixed amount of $25,000, as does the mortgage broker bond in the state. These amounts may differ in other states. The $75,000 freight broker bond, on the other hand, is fixed and has the same amount across all states
Contract bonds also have different amounts and these are determined by the specific project that contractors are obtaining a bond for.
What determines the cost of my bond?
Your bond’s cost or premium is a fraction of the full bond amount. It can vary between 1%-4% of the total bond amount for standard market rates and 5%-15% for applicants with bad credit.
How high your bond rate will be, depends on a series of financial factors that sureties take into account when reviewing your bond application. These factors are:
- Personal credit score (most importantly)
- Personal and business financials
- Your industry experience
- Other financial and business factors
Standard market rates are usually offered to applicants with a high credit score, one of 700 FICO or more.
Can I get bonded if I have a low credit score?
Yes, even if you have a low credit score or have no credit at all, you can still get bonded.
Applicants with less than perfect credit, bankruptcies or other financial difficulties are offered higher rates due to the higher risk involved in bonding them. Applicants like these can apply for a bond through the Bad Credit Surety Bond Program.
If such applicants improve their credit score over time, they can apply to get bonded at increasingly better rates.
To get an estimate on your surety bond rate in Alabama, try our surety bond calculator below!
Surety Bond Cost Calculator
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If you would like to find out more what sureties take into account when determining the rate of your bond, have a look at our highly informative Surety Bond Cost page.
How to Get Bonded in Alabama
There are two different ways of applying, depending on the type of surety bond you want to get.
License bond application
To apply for a license bond, complete our online surety bond form. You will soon be contacted by one of our experts with a free and exact quote on your commercial bond.
Once you’ve heard from us, you will need to supply us with a few more documents before we can underwrite your bond. The process is simple and straightforward.
Contract bond application
To apply for a contract bond, complete the contract bond application that applies to you. Once we receive your form, we will contact you with more information about getting bonded.
If you require more information, you can always call us at (866)-450-3412 to consult one of your surety bond experts.