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License bond

Alabama Contractor License Bond. 0.5%, $100 min.

Alabama has no statewide general contractor license bond; the Licensing Board for General Contractors qualifies contractors by net worth and financial statements. Some Alabama cities require a contractor license bond to work locally.

  • Required by City or county licensing offices, where they require one
  • 0.5% of the bond amount, $100 minimum. The calculator shows your price
Start the applicationWho needs this bond
  • 1–3 year terms
  • A-rated surety carriers
  • Issued through Propeller Bonds
  • See your price before you pay
Your price

0.5% of the bond amount

Minimum premium$100
Bond amount
From $1000.5% × $10,000 = $50, so the $100 minimum applies
  • 1–3 year terms
Start the application

The starting rate. An underwriter reviews your application and you see the final price before you pay.

Price checked on Propeller Bonds' application, Oct 15, 2026.

How it works

Three steps to your bond.

  1. 01Apply onceTell us about your business and what the bond is for. One application covers most contractor bonds.
  2. 02The surety reviews itPropeller Bonds, our surety partner, reviews your application and sets the terms. We show you the terms before you commit.
  3. 03Sign and fileSign the bond and file it with whoever requires it: the project owner, agency or court. We help with the filing.
The application

What you'll be asked, before you start.

Propeller's application for this bond has 17 questions. The surety may also review your credit before it issues the bond. Have these to hand and it takes a few minutes.

About the bond

Dates and numbers for this bond.

  • Bond amount
  • Effective date

About your business

Who the bond is for and how to reach you.

  • Type of entity
  • DBA Name (if applicable)
  • Address line 1
  • Address line 2
  • City
  • State
  • Zip code
  • Contact person first name
  • Contact person last name
  • Contact person position
  • Is contact person the Business owner?
  • Business owner first name
  • Business owner last name
  • Phone
  • Email

Start the application

About this bond

What a contractor license bond is

Some states, and many cities and counties, make contractors post a bond to get or renew a license. It protects customers, workers and the public if the contractor breaks the licensing laws, for example by abandoning a job or not paying workers. The contractor repays the surety for any claim it pays.

In Alabama

Alabama has no statewide general contractor license bond; the Licensing Board for General Contractors qualifies contractors by net worth and financial statements. Some Alabama cities require a contractor license bond to work locally.

You need this bond if you're

  • A contractor applying for a new license
  • A contractor renewing or reactivating a license
  • A business changing its entity type or qualifier
  • A contractor starting work in a city or county that requires its own bond

What the surety looks at

Basic business and owner details. Most license bonds need a credit check but no financial statements.

FAQs

Common questions.

How much does the Alabama Contractor License Bond cost?

0.5% of the bond amount, with a $100 minimum. The calculator on this page works it out for your amount.

Do I have to pay the full bond amount?

No. You pay the premium. The bond amount is the most the surety would pay out on a valid claim, and if it ever pays one, you pay the surety back.

Is there a credit check?

The surety may review your credit or your application before it issues the bond. You see the final price before you pay.

Does Alabama require a contractor license bond?

See the facts above for what the state requires. Even where the state doesn't, a city or county can. Check with the licensing office where you'll work.

Is a license bond the same as insurance?

No. The bond protects your customers and the public, not you. If the surety pays a claim, you repay it. Liability insurance is what protects your business.

What happens if the bond lapses?

The licensing agency is notified and can suspend your license until a new bond is on file. Renew before the expiry date.

How do I get one through BLDAssure?

Apply once with us. We collect the details the surety needs, Propeller Bonds (our surety partner) reviews the application and issues the bond, and we help you file it with whoever requires it.

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By state

Contractor license bonds in other states.

Alaska contractor license bondArizona contractor license bondArkansas contractor license bondCalifornia contractor license bondColorado contractor license bondConnecticut contractor license bondDelaware contractor license bondDistrict of Columbia contractor license bondFlorida contractor license bondGeorgia contractor license bondHawaii contractor license bondIdaho contractor license bondIllinois contractor license bondIndiana contractor license bondIowa contractor license bondKansas contractor license bondKentucky contractor license bondLouisiana contractor license bondMaine contractor license bondMaryland contractor license bondMassachusetts contractor license bondMichigan contractor license bondMinnesota contractor license bondMississippi contractor license bondMissouri contractor license bondMontana contractor license bondNebraska contractor license bondNevada contractor license bondNew Hampshire contractor license bondNew Jersey contractor license bondNew Mexico contractor license bondNew York contractor license bondNorth Carolina contractor license bondNorth Dakota contractor license bondOhio contractor license bondOklahoma contractor license bondOregon contractor license bondPennsylvania contractor license bondRhode Island contractor license bondSouth Carolina contractor license bondSouth Dakota contractor license bondTennessee contractor license bondTexas contractor license bondUtah contractor license bondVermont contractor license bondVirginia contractor license bondWashington contractor license bondWest Virginia contractor license bondWisconsin contractor license bondWyoming contractor license bond

Sources

  1. Ala. Admin. Code ch. 230-X-1, Licensing Board for General Contractors
  2. Alabama Contractor License Requirements (The Contractor Matrix)

General information, not legal advice. Rules change; confirm the current requirement with the agency or owner that asks for the bond. Facts checked Oct 23, 2026.

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