Alabama Surety Bonds
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Common Surety Bonds in Alabama
These are the more common bonds in your state. For a list of all of your state’s bonds and federal bonds available click the big blue button for more! If it’s not listed, contact us and we’ll add it.
Alabama Notary $25,000 without EO
Required by notaries it protects the public against financial loss
Alabama Notary bond $25,000 with $25,000 E&O coverage
Required by notaries it protects the public against financial loss
Alabama Motor Vehicle Dealer Bond ($50,000)
Ensures consumer protection as required by Div of Motor Vehicles
Alabama Mortgage Broker Bond
Required of professional mortgage brokers to obtain a license.
Alabama Alcohol Tax Bond
Ensures appropriate taxes and fees are paid to the state
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Alabama Instant Surety Bonds

How to Get a Surety Bond in Alabama
Your Guide to Surety Bonds in Alabama
An Alabama surety bond is as common as regular old southern hospitality. You’ll need surety bonds in Alabama if you want to start a business or engage in an activity that requires licensing. Whether it’s HVAC contracting, construction or brokerage or many other activities, the State of Alabama demands proof of financial responsibility before granting licenses for certain professions and trades. A surety bond is one way to provide that.
The most common surety bonds required to conduct business include those for contractors, utility companies, notaries and tax payments. Mortgage brokers, insurance brokers, and freight brokers also need to equip themselves with a surety bond ensuring compliance with municipal and state regulations before they can work on behalf of their clients.
When required, an Alabama surety bond is tied to a performance obligation. The obligation can take various forms whether that be the completion of a construction contract, advance payment to a contractor, or payment guarantees to subcontractors. For construction projects, Alabama contractor bonds are often required by law to protect the interests of the public, consumers, and the company itself. Surety bonds provide assurance the project will be completed on time, of agreed specification, and under the conditions laid out in the contract.
An Alabama Surety bond is often required to ensure a professional obligation as well. There are numerous non-construction or payment-related performance obligations that revolve around licensing, permitting and probate.
At Simpli Surety, we are your hassle-free, cost-friendly direct surety bond provider in New Jersey. No drawn out quote process, our instant issue platform has surety bonds delivered to your inbox in minutes!
What is a surety bond? How does a surety bond work?
It’s a type of contract that safeguards another party from financial loss. In the case of surety bonds, there are three parties:
- Principal (the person or business which needs to secure their liability)
- Surety (a third party, often an insurance company, who agrees to assume responsibility for the debt and acts as guarantor)
- Obligee (the person or business for whom the surety bond is being issued)
To issue an Alabama surety bond, both parties agree to the terms and conditions of a contract that carries an obligation to perform. These are usually written into an agreement that ensures compliance with state laws regarding surety bonds in Alabama. The details covered include:
1) Principal’s ability to perform a service and or repay a debt if necessary
2) Surety’s obligation should they become financially liable because the Principal fails to meet their obligations under the contract
The important thing about surety bonds is that all Principals and the approved Surety insurance company in Alabama act as guarantors; however, the Surety will be responsible for payment due to defaults on contractual agreements under the bond. The bond allows the surety company to seek repayment from the Principal if a claim is valid.
What is a surety bond used for?
Well, it guarantees an agreement between three parties by securing the obligation in that it is used to:
- To secure performance on contracts;
- Guarantee compliance with contract specifications and standards;
- A warranty against defective products;
- Secure licensed professionals
In Alabama, there are many industries this applies too.
For example, Alabama is known for its steel industry, one that uses bonds. In addition to being a top metals producer it is also a top producer of new businesses and business owners. These small- to medium-sized companies need the assistance of surety bonds as they start doing work for clients, sign contracts, or launch their businesses.
Aerospace and automotive are big business in AL. In fact, Alabama was named best business climate in the US by Business Facilities ranking report. Alabama’s diverse economy includes chemicals, technology, aeronautics and forestry.
There tends to be a bond need in just about every industry, required or as optional protection.
Can I get a surety bond online?
Yes. At Simpli Surety, we have 1000s of instant issue surety bonds available to our clients on-demand at low surety bond rates. Our surety bond experts are here to help. Or visit our surety bond information center to learn more.
How much does a Surety Bond cost?
Surety bond costs can range depending on the type and terms of the bond. The fee is calculated, also called the surety bond premium, as a percent of the total coverage needed or bond amount, usually ranging anywhere from 1% to 3%. For instance, straightforward license and permit bonds tend to fall on the lower end of the spectrum even below 1%. While a more complex performance bond for a large construction project that carries a higher risk and bond amount, therefore, the surety bond cost can range higher between 1.5% to 2.5% on average.
Surety bond costs could be higher or lower depending on your surety company, the type of work you are doing, and other factors. If you need help determining how much a surety bond will cost for your specific situation, use our search to find the instant issue bonds you need, and often the surety bond cost and bond amount are listed on the application.
At Simpli Surety, we have 1000’s of instant issue surety bonds available to our clients on-demand at a low surety bond rate. The application and approval process is completed quickly, so you can get back to your business.
How to Obtain a Bond in Alabama
The best surety company in Alabama is us! SimpiSurety has all of these bonds and more AL surety bonds available instantly. Search for your bond and apply online in minutes.
Although, whomever you choose, be sure they are a licensed surety bond agency in Alabama that can help you get bonded for the right bond amount. All surety companies are not the same, so choose wisely when choosing your Alabama bonding agent.
What are the most popular Surety Bonds in Alabama?
In Alabama , many industries and professions that require licensing or the proprietor to register their business with a state commission or regulatory body require a surety bond, including:
- Alabama Notary without EO – pledgers a notary will perform his or her duties required by the state in accordance with ethical standards and in compliance with state laws. The bond ensures client protection and credibility to the notary. Bonded coverage $25,000. Buy Now
- Alabama Notary bond with E&O coverage – pledgers a notary will perform his or her duties required by the state in accordance with ethical standards and in compliance with state laws. The bond ensures client protection and credibility to the notary. Bonded coverage $25,000 + $25,000 E&O Buy Now
- Alabama Motor Vehicle Dealer Bond – Used car, motorcycle and ATV dealers must secure an auto dealer bond as a part of the licensing process to ensure they are capable of and can maintain ethical business standards. Bonded coverage to $50,000. Buy Now
- Alabama Telemarketer Bond – The Alabama Telemarketing Act, as amended by Sections 8-19A-1 through 21 of the Code of Alabama, requires any individual, company, or organization that undertakes telemarketing, telephone salesmanship, or telemarketing to register with the state on an annual basis. Buy Now
- Alabama Mortgage Broker Bond – Alabama Mortgage Brokers Licensing and other acts’ compliance requires the mortgage brokerages to secure and file this with the State on behalf of all employed mortgage lending officers. Bonded coverage up to $75,000 based on origination volume. Buy Now
- Alabama Hunting and Fishing License Agent – The Alabama Department of Conservation and Natural Resources (DCNR) has a requirement that all Alabama Hunting and Fishing License Agents post a bond of $10,000. Buy Now
- Alabama Alcohol Tax Bond – The alcohol tax bond, also known as an Alabama liquor bond, ensure that that the principal pays all taxes, penalties, and interest owed to the state, as well as files reports and pays all taxes relating to sales. Buy Now
- Alabama Sales Tax Bond – Sales Tax Surety Bonds are often required for convenience stores and other businesses selling alcohol, tobacco and fuel. Bonded coverage to $25,000.
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For all Alabama Surety Bonds and Federal Bonds, use the search atop this page or Click for More Bonds below.
Types of Surety Bonds in Alabama - Federal
- Freight Broker Bonds – often referred to as BMC-84 bonds, are a Federal as opposed to state mandate made by the Federal Motor Carrier Safety Commission to conduct business as transportation brokers. Coverage to $75,000. Buy Now
- Durable Medical Equipment Provider Bonds – often referred to as DMEPOS bonds are required of suppliers of prosthetics, orthotics, and durable medical equipment. A federal mandate per the Centers for Medicare and Medicaid Services to mitigate Medicate billing fraud. Min bond requirement of $50,000 per National Provider Identifier needing Medicate billing authorization. Buy Now
- Performance Bonds – this bond covers general performance obligations related to a contract but most often ensures the satisfactory completion of performance by a contractor. The bond penalty is tied to contract value and can be mandated at federal, state, or municipal levels. Buy Now
- Bid Bonds – a construction bond that protects the developer or project owner of a construction project during the bidding process. It guarantees them that if the bidder can or will not honor the terms of the bid, the owner will be compensated. Bid bonds are commonly required on projects that also involve performance bids and payment bonds. Buy Now
- Payment Bonds – these surety bonds are often paired with performance bonds ensuring prompt payment to suppliers and subcontractors on the project. This signals to the owner, supplier, and sub that the contractor will be compliant in working with them to completion and paying on time. Buy Now

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