Alabama Surety Bonds

The type of surety bond you need, its amount and the strength of your finances determine the price you will have to pay for obtaining it. Your surety bond cost, also known as your premium, is a fraction of the full bond amount.

The premium is set on the basis of various financial factors. Your personal credit score is of particular importance as an indicator of financial reliability. Other factors include your business finances, assets and liquidity, and business know how.

The more stable these indicators are, the smaller your bond cost is likely to be. The typical bond rates for applicants with solid finances are between 1% to 5% of the bond amount.

Many types of bonds can still be obtained even if you have problematic finances. Applicants are invited to apply for a bond under our Bad Credit Surety Bonds program, which makes it possible to get bonded despite credit difficulties.

Rates under the program are slightly higher, to accommodate the risk involved in the higher risk bonding. They typically range between 5%-15% of the total bond amount. As we work with a number of A-rated, T-listed sureties, we strive to offer you the best bonding option.

When you have completed your application and submitted your paperwork, we are able to provide you with an exact bond price.

Would you like to delve into the nitty-gritty details of how bonding works? Make sure to check out our How to Get Bonded page.

For any questions or if you need assistance with your application, we are here to help. Just call us at (877) 514-5146.

Similarly to other states, here are three main surety bond types in Alabama.

You may need to get license bonds when you want to obtain a professional or business license in the state. Car dealers, mortgage brokers, contractors and other license-holders need to have a license bond before they are allowed to exercise their profession. These bonds guarantee that the bond’s principals will comply with applicable regulations for their license.

Licensed and bonded contractors bidding on construction projects often have to obtain contract bonds. These bonds serve to guarantee the quality of contractor performance in accordance with the contract or, in other cases, that contractors will fulfill all their obligations towards subcontractors and suppliers. These bonds may be required for both public and private construction projects.

More rarely, you may need to obtain court bonds in case an Alabama court requires you so. Typical cases include if you are appointed as a fiduciary, or if you are appealing a court case to higher instance.