Alabama Surety Bonds: Comprehensive Solutions

More Info About Alabama Bonds

Here is some more in-depth info about common types of bonds in Alabama. If you have any questions, feel free to�contact us, and one of our agents will be happy to assist you.

Contractor Bonds

There is no statewide contractor bonding requirement in Alabama for projects under $50,000. There are, however, local bonding requirements in some municipalities. Note that bid bonds, performance bonds, or both are required for contractors who want to work on public construction jobs in the following cities:

• Wetumka, Dothan, Russelville, Opelika, Tuscumbia, Tuscaloosa, Mountain Brook, Hueytown, Gulf Shores, Florence, Satsuma, Saraland, Cullman, Alexander City, Auburn

Contractor License Bonds

Be aware that contractors who want to work on projects of $50,000 or more will need to be licensed by the State Licensing Board for General Contractors. Some cities in Alabama require contractors to obtain license bonds regardless of the size of a contract.

Cost Of Contractor Bonds

The premium cost for a contractor bond is calculated as a percentage of the total bond amount. The total bond amount required depends on the municipality or state agency. A contractor with good credit will typically pay 1% – 4% of the total bond amount. Those who have�bad credit or are considered a poor risk for other reasons can pay as much as 15% of the total bond amount. Get a quote today.

Other Common Alabama Surety Bonds

Here are some of the common surety bonds issued in the state of Alabama. Most of these are required by the state to protect the public against financial loss due to the actions of a company.

• Court Bonds may be required in order to appeal a court decision, become a minor’s legal guardian, or serve as fiduciary of an estate.
• Business Service Bonds are obtained voluntarily for companies that send employees to work in clients’ homes or business premises as protection against an employee’s theft of a client’s property.
• Certificate of Title Bonds are required in order to register or transfer ownership of a vehicle with a missing title.
• Motor Vehicle Dealer Bonds are required in order to sell new or used vehicles, including motorcycles, motor homes, and trailers.
• Automotive Dismantler & Parts Recycler Bonds are required for anyone maintaining 10 or more inoperable vehicles for more than 30 days.
• Designated Agent Bonds are required for individuals who are not motor vehicle dealers but represent a pawnshop, legal firm, or out-of-state financial institution dealing with manufactured homes.
• Notary Bonds are required for notary publics and others who administer oaths or provide acknowledgements.
• Utility Bonds are required by Alabama utility companies for certain clients to ensure payment of utility bills.

Ask for a quote today on the Alabama bond you need.