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.

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.

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
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

* 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)

Providing Bonds and Insurance Since 1957