Alabama Contractor License Bonds

February 17, 2021

Contractor license bonds protect the public from financial harm resulting from violations of licensing law committed by the contractor and their employees.

The State of Alabama requires contractors to obtain specific surety bonds correlating with their license type. We have compiled comprehensive guides on these bonds to assist insurance agents in obtaining Alabama contractor license bonds for their customers. Below are all of the contractor licensing bonds required by the State of Alabama:

• Alabama HVAC Contractor Bond

  • Average Cost: $100 per year
  • Bond Amount: $15,000
  • Who Needs It: All individuals and businesses that act as heating, air or refrigeration contractors in the State of Alabama
  • Purpose: To ensure the public will receive compensation for any damages should the contractor fail to comply with contractor licensing law
  • Who Regulates HVAC Contractors in Alabama: The Alabama Board of Heating, Air Conditioning & Refrigeration Contractors (BOHACRC)

• Alabama Residential Roofer Bond

  • Average Cost: $100 per year
  • Bond Amount: $10,000
  • Who Needs It: All individuals and businesses that act as residential roofing contractors in the State of Alabama
  • Purpose: To ensure the public will receive compensation for any damages should the contractor fail to comply with contractor licensing law
  • Who Regulates Roofers in Alabama: The Alabama Home Builders Licensure Board (HBLB)

How Can an Insurance Agent Obtain a Surety Bond for Their Customer?

BondExchange makes obtaining a surety bond easy. Simply login to your account and use our keyword search to find the “contractor” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.

At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

What Other Insurance Products Can Agents Offer Contractors in Alabama?

Alabama does not require contractors to obtain any form of liability insurance. However, most reputable contractors will consider obtaining liability insurance anyway. Bonds are our only business at BondExchange, so we do not issue any form of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.