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Alabama Contractor License Bond

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What is an Alabama Contractor License Bond?

In Alabama, there is no statewide requirement for construction contractor licensing. However, each county or municipality where a contractor works may mandate a valid license be in place in order to legally perform projects for customers. In addition to a licensing requirement, an Alabama contractor license bond may be necessary.

Posting an Alabama contractor license bond is a way to help protect customers of a licensed contractor. Should a project fail to be performed in line with local building codes or laws, a customer can file a claim against the bond for compensation. While the surety company initially pays for a bond claim, it is the contractor’s responsibility to repay the claim. For this reason, keeping Alabama contractor license bond claims to a minimum is important to maintaining your contractor business in the state.

What Does an Alabama Contractor License Bond Cost?

Bond pricing depends on several different factors, including the total bond amount required. An Alabama contractor license bond of $1,000 may be needed in one jurisdiction, while a bond of at least $25,000 may be required in another. Be sure to check with the local municipality to determine the bond amount you need.

Regardless of the amount of the bond required, licensed contractors do not need to pay the full amount to post a bond. Instead, a bond premium is calculated as a percentage of the total bond. Bond premiums can range from 1 to 10%, depending on your credit history and business financials. You can still get an Alabama contractor license bond with poor credit, but the bond premium you pay will be higher than for someone who has a healthy credit score.

How Do I Get an Alabama Contractor License Bond?

Obtaining your Alabama contractor license bond is a simple process. You can submit a short form to request a quote and start an application online, and you may receive approval quickly once your application details have been reviewed.


Frequent Questions

How much does a bond cost?

Pricing is a percentage of the bond amount that’s required of you, which is based on your personal credit. Use our bond pricing tool to to get a quick ballpark estimate.

Can I get bonded with bad credit?

Yes. You can apply and get bonded with bad credit. Our agency is the largest writer of bonds in the county, which allows us to approve contractors for bonds when other agencies cannot.

Are these the same as contract bonds?

No. Contractor license bonds ensure you will abide by the laws of your state, city or municipality when performing contracting work. Contract bonds guarantee public projects will be completed properly and are a separate bond type. You can learn more about contract surety bonds by visiting the contractor bond center.

Do I need a state or local bond?

It depends on who is requiring the bond of you, the local municipality, county or state. Depending on your location, it is possible you may need both a local and state bond, as contractor license bond requirements can vary drastically. You can select your state to see a full list of contractor license bond requirements.


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Jennifer Henson
Our company has been with JW Surety for several years now so when we needed to obtain a bond for a new company, we immediately went to them for help. Our rep, Melissa, was extremely helpful and prompt which made the process extremely easy for me.
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Trying to get a local Surety Bond was like driving a car on three tires. I searched Surety Bonds and found JW Surety Bonds. I got online and filled out the information and with in 30 minutes received a response from Melissa. She was informative, friendly and helpful. One more super satisfied customer.

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