Alabama Surety Bonds

At Surety Bonds Agent, we offer a full range of surety bonds nationwide through an extended carrier network. Continue below to learn more about Alabama surety bonds. If you have additional questions or want to explore bonding solutions for your business, speak with one of our knowledgeable surety bond experts.

What Is an Alabama Surety Bond?

A surety bond purchaser (known as the bond’s “principal”) guarantees compliance with certain regulatory and/or contractual obligations. An Alabama surety bond of any type provides financial protection for the party requiring it (the “obligee”) and, in many cases, for consumers. Most commonly, the obligee is a government entity.

What Types of Alabama Surety Bonds May Be Needed?

Alabama surety bonds are categorized as one of the following:

  • License and permit bonds—required when obtaining or renewing a professional or occupational license or permit at the state or local level
  • Contract bonds—required when entering into a contract, typically in the construction industry, with either a public or private obligee
  • Court bonds—required from plaintiffs and/or defendants involved in certain types of civil court proceedings and from people appointed to fiduciary positions by a probate court
  • Fidelity bonds, sometimes called “business services bonds”—required by business owners concerned about potential employee dishonesty

How Do I Apply for an Alabama Surety Bond?

The quickest and easiest way is to apply online, receive a quote in a matter of minutes, and complete the purchase online. If you have questions before applying, call and speak with one of our surety bond professionals.

How Much Does It Cost?

Most Alabama surety bonds are subject to an underwriting assessment of the risk to the bond’s guarantor (known as the “surety”). The surety sets the premium rate based on the principal’s personal credit score. The higher the credit score, the lower the risk level. The premium rate for a principal with good credit usually is in the range of 1% to 3%. Multiplying the bond amount by the premium rate yields the premium cost.

Alabama Surety Bond FAQ

Yes. Surety companies typically offer bad credit programs. You’ll pay more than you would with a higher credit score, but we’ll find you the best rate you qualify for.

You will need to obtain your bond from a surety bond provider authorized to issue bonds in Alabama.  

Insurance and surety bonds are not the same thing. You buy insurance to protect yourself against financial loss. You buy a bond to protect the obligee that is requiring it. Depending on the type of surety bond, that protection can extend to consumers.

The surety investigates all claims to determine whether they are valid. If they are, you are legally obligated to pay it. You will need to provide the surety with evidence to support your argument if you believe a claim is not legitimate.

At Surety Bonds Agent, we offer a full range of surety bonds nationwide through an extended carrier network. Continue below to learn more about Alabama surety bonds. If you have additional questions or want to explore bonding solutions for your business, speak with one of our knowledgeable surety bond experts.

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FREE SURETY BOND QUOTE

What Is an Alabama Surety Bond?

A surety bond purchaser (known as the bond’s “principal”) guarantees compliance with certain regulatory and/or contractual obligations. An Alabama surety bond of any type provides financial protection for the party requiring it (the “obligee”) and, in many cases, for consumers. Most commonly, the obligee is a government entity.

 

Alabama surety bonds are categorized as one of the following:

  • License and permit bonds—required when obtaining or renewing a professional or occupational license or permit at the state or local level
  • Contract bonds—required when entering into a contract, typically in the construction industry, with either a public or private obligee
  • Court bonds—required from plaintiffs and/or defendants involved in certain types of civil court proceedings and from people appointed to fiduciary positions by a probate court
  • Fidelity bonds, sometimes called “business services bonds”—required by business owners concerned about potential employee dishonesty

The quickest and easiest way is to apply online, receive a quote in a matter of minutes, and complete the purchase online. If you have questions before applying, call and speak with one of our surety bond professionals.

Most Alabama surety bonds are subject to an underwriting assessment of the risk to the bond’s guarantor (known as the “surety”). The surety sets the premium rate based on the principal’s personal credit score. The higher the credit score, the lower the risk level. The premium rate for a principal with good credit usually is in the range of 1% to 3%. Multiplying the bond amount by the premium rate yields the premium cost.

Alabama Surety Bond FAQ

Yes. Surety companies typically offer bad credit programs. You’ll pay more than you would with a higher credit score, but we’ll find you the best rate you qualify for.

You will need to obtain your bond from a surety bond provider authorized to issue bonds in Alabama.  

Insurance and surety bonds are not the same thing. You buy insurance to protect yourself against financial loss. You buy a bond to protect the obligee that is requiring it. Depending on the type of surety bond, that protection can extend to consumers.

The surety investigates all claims to determine whether they are valid. If they are, you are legally obligated to pay it. You will need to provide the surety with evidence to support your argument if you believe a claim is not legitimate.

REQUEST A QUOTE

Request a quote online or call today to speak with one of our surety bond experts about obtaining an Alabama surety bond.