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.
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 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.
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.
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.
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.
|Bond Name||Coverage Amount||Cost
|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
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.