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Alabama Contractor's License Bond

Depending on what kind of contractor you are and what part of Alabama you work in, you may need a contractor's license bond before you can get a contractor's license. When required, It's illegal to work without a license, making it vital to get the Alabama contractor license bond. Fortunately, the process is not as confusing, difficult, or expensive as it may seem. In this article, we've outlined the basics for you.

How Does an Alabama Contractor's License Bond Work?

It makes a contractor responsible for following all applicable state and local laws. If they don't and that illegal behavior results in damages for a customer, the customer can file a claim against the surety bond for compensation. The contractor must pay to settle all valid claims. If they don't, however, the surety company that backs the bond will settle with the expectation that the bondholder (the contractor) will repay that debt – with interest and fees added – in a timely manner. The contractor with the bond must always take financial responsibility for valid claims. Failure to do so could result in legal action and loss of bond coverage.

Alabama Contractor License Bond Requirements

Many municipalities, including Birmingham, Gulf Shores, Mobile, and others, require contractors to have a surety bond. The state also has surety bond requirements for specific workers no matter where they work, including:

  • Heating and Cooling Contractors – $15,000 bond
  • Refrigeration Contractors – $15,000 bond
  • Residential Roofers – $10,000 bond
  • Plumbing and Gas Fitters – $2,000 bond

How to Get an Alabama Contractor's License Bond

You can apply and obtain a required bond in just a few simple steps:

  • Complete a bond application
  • Undergo a credit check
  • Supply extra documents (when necessary)

After these steps, the surety will use this information to quote a premium (the cost of a surety bond) and provide proof of bond coverage after the premium has been paid.

The Cost of an Alabama Contractor's License Bond

Bond premiums are a small percentage of the total coverage amount. They are calculated based on the individual bond seeker's credit standing. People with a low credit score or spotty financial history will pay more, but thanks to a special program from Viking Bond Service, they will get a fair review and a competitive rate more often.

How Long Does an Alabama Contractor's License Bond Last?

Most bonds last for 12 months (but other terms are possible). Keeping a contractor license valid requires bond renewal at the end of the converge term. Before renewing, the surety will run another credit check and move the premium up or down based on any changes.

Get an Alabama Contractor's License Bond From Viking Bond Service

Get the AL contractor's license bond or any other surety bond you need with the help of Viking Bond Service. How much would your bond cost? Find out in under 24 hours by requesting a quote. Or get answers to all your questions by contacting us or calling 1-888-2-SURETY (1-888-278-7389).

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