Alabama – Contractors License and Permit

Instantly obtain a contractor's license bond

 Please note that the following information is related to contractor’s license  bonds. If you are a contractor seeking information on obtaining contract surety bid and performance bonds, please visit our

What Is an Alabama’s Contractor’s License Bond?

In Alabama, a contractors license and permit bond gives the contractor a legal standing to do business in the state. Contractors are required to post this bond before they can legally do business on a state, county, town or municipal level. The license bond is a legally binding agreement that the contractor will complete all business according to Alabama state law and in accordance with safe business practices. This protects the contractor from fraud accusations along with legally allowing the contractor to work in his field of choice. Contractor license bonds are used to guarantee that contractors will obey the laws of the industry and follow state regulations. If a contractor fails to do this, the party whom is affected can make a claim against the contractor in order to receive compensation for any loss.

Obtaining Contractor’s License Bonds for My Trade.

Contractor’s license bonds may be required in Alabama on a state, county, town or municipal level.  Since Colonial is the insurance company, you can easily obtain a bond customized to your location’s requirements.  Below are a few examples of state-wide requirements by trade.

HVACR contractors require a license bond in the amount of $15,000

Plumbing and Gas Fitting contractors require a license bond in the amount of $15,000

Colonial issues these contractors license bonds, as well as all other types of contractors license bonds required by Alabama counties, municipality and towns.

What is the process to obtain the bond?

Colonial offers one of they fastest ways to obtain a contractor’s license bond. We are the insurance company- which means no agent, no broker, and no middleman. There is no turnaround time to obtain your bond. The steps are simple- get a free quote online, fill out your information, answer our underwriting questions, and enter your payment method. Your bond will be available in a PDF or original form, and always accessible to you online. It’s that simple!

What Do Contractor’s License Bonds Cost?

Contractor’s License bonds are reasonable prices and easy to obtain-so that you can run your business. You may notice with other insurance agents and middlemen companies, your premium rate will fluctuate depending on your application-but not at Colonial. We offer a flat rate for each contractor’s license bond.

Does it matter where I get my bond?

It’s important to understand how surety bonds work, and the insurance company issuing your bonds. This makes it important that you find a quality insurance company licensed in your state to write surety bonds. Colonial is an A rated Surety Company by A. M. Best that has been incorporated since 1930. We are treasury listed and licenses and admitted in all US States and territories.