Alabama Surety Bond

There are three types of Alabama surety bonding that can be required of you:

• License and permit bonds needed for many professions such as auto dealers and contractors to operate legally.
• Contractor bonds for public construction projects.
• Court bonds required by the courts for various purposes.

It’s important you understand how surety bonds work and that you're responsible to pay claims in full, which makes it vital to find a bond company that will defend you from claims.

Alabama requires license and permit bonds in order to get and file licenses/permits for many different professions. You can find our full list of license and permit bonds required by using our bond requirement search tool.

Contract bonds such as bid bonds and performance bonds are needed to work on public construction jobs. However, these are usually required by cities or municipalities as opposed to the state of Alabama. You can learn more about what’s needed to get surety bonds for public construction projects.

Court bonds aren’t needed as often as the bonds mentioned above, but can be required by the courts if you need to appeal a court decision, become a legal guardian of a minor or operate as a fiduciary of an estate.

Surety bonds generally cost 1-15% of the required bond amount. Surety bond costs vary drastically depending on the bond amount you need and your rate (which is the percentage of the full bond amount you must pay). You can get an instant estimate by using our bond premium calculator, or apply online to get a firm bond quote.

It’s possible to get a surety bond with bad credit, but it will depend on the bond type you need and how severe your credit issues are. You can get approved for most license and permit bonds regardless of your credit situation. However, it is more difficult to get contract bonds with bad credit. You can also read the most frequently asked surety bond related questions.