Alabama Surety Bonds

Surety Bond Requirements in AL

Many professionals, contract workers, and companies in Alabama must post a surety bond before their business license can be issued by the regulatory authority in charge of licensing.

Although many bonds are required at the state level, certain cities and counties in Alabama also require bonding. For instance, plumbers and electricians are required to be bonded in Birmingham, Auburn, Fairfield, and Gulf Shores.

If you need a surety bond to comply with Alabama’s business licensing regulations, we can help. NNA Surety Bonds has been providing affordable policies to companies and individuals across the United States since 1957. We offer some of the state’s most popular bond types, including contractor bonds, appraisal management company bonds, and auto dealer bonds.

We offer the following surety bonds in the state of Alabama:

Appraisal Management Company (AMC) Bond

AL appraisal management companies (AMCs) must post a $25,000 surety bond with the Alabama Real Estate Appraisers Board to hold a business license in the state. This bond is designed to provide compensation to any harmed party that results from wrongful actions by the AMC. Your premium for this policy is just 1% of the bond’s penal sum, or $250.

Bail Agent Bond

Bail bond agencies are required to hold a $25,000 surety bond as part of their licensure. The bond amount for agencies located in Cullman County is $10,000. A bail bond for licensing requirements is not the same as the bond a criminal would get to be released from custody until their case is concluded. Professional bail companies must be licensed by the Alabama Professional Bail Bonding Board.

Contractor License Bond

Most Alabama contractor bonds are required by city governments rather than by the state. Bond amounts required by local cities (including Alexander, Auburn, Tuscaloosa, and Wetumpka) can vary greatly, but typically fall within the $1,000 to $5,000 range.

An example of a state-level contractor bond in Alabama is the $15,000 HVAC or refrigeration contractor bond. For help figuring out which contractor bonds you need, talk to one of our bonding experts or fill out our quote request form.

Motor Vehicle Dealer Bond

All new and used motor vehicle dealer licensees in Alabama are required by the state’s Department of Revenue to post a $25,000 surety bond. This bond protects consumers and the state if the auto dealer fails to live up to the terms of the surety bond contract. You can obtain this bond coverage for a $250 annual premium.

Residential Roofer Bond

Roofing contractors are required to obtain a $10,000 Alabama residential roofer bond as part of the licensing process. Alabama Home Builders Licensure Board established this surety bond requirement in 2019 to guarantee anyone who installs products or repairs surfaces on residential roofs fulfill contractual obligations with the homeowner and follow state laws and regulations.

Alabama Surety Bond Costs
Bond Name Coverage Amount Cost
(Annual Premium)
Regulatory Authority
Appraisal Management Company Bond $25,000 $250 Alabama Real Estate Appraisers Board
Bail Agent Bond $10,000 / $25,000 $250* Alabama Professional Bail Bonding Board
Contractor License Bond Varies Varies* Alabama Board of Heating and Air Conditioning Contractors and local cities
Motor Vehicle Dealer Bond $25,000 $250 Alabama Department of Revenue
Residential Roofer Bond $10,000 $100 Alabama Home Builders Licensure Board

* Cost can vary depending on the bond amount required and your credit rating

Get Your Alabama Surety Bond


Our knowledge of Alabama bond requirements allows our team to provide accurate quotes quickly. For guidance through the process of selecting surety bonds for your business, speak with one of our experts today. 

For faster service, call us at 855-215-2160
Monday to Friday, 6 a.m. to 5 p.m. (PT)