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Alabama

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An Alabama surety bond is a promise to the obligee that if the principal cannot or does not meet their obligations, the principal or the surety will reimburse the involved obligee in a financial way (or by fulfilling the contract in some other way).

Usually when you buy insurance, it is for you or your business. A surety is a bit different. With a bond, you, the principal, are paying for insurance for the other party, an obligee. You pay for the bond that a surety guarantees and the obligee can file claims against if needed.

Sureties help with both legitimate claims and any false ones. The company acting as surety is on your side and helps with handling any complaints that come up. They also have a responsibility to ensure any authentic claims are paid or otherwise resolved.

Common Alabama Surety Bonds


An Alabama surety bond is a promise to the obligee that if the principal cannot or does not meet their obligations, the principal or the surety will reimburse the involved obligee in a financial way (or by fulfilling the contract in some other way).

Usually when you buy insurance, it is for you or your business. A surety is a bit different. With a bond, you, the principal, are paying for insurance for the other party, an obligee. You pay for the bond that a surety guarantees and the obligee can file claims against if needed.

Sureties help with both legitimate claims and any false ones. The company acting as surety is on your side and helps with handling any complaints that come up. They also have a responsibility to ensure any authentic claims are paid or otherwise resolved.

Common Alabama Surety Bonds

Auto Dealer Bond
Mortgage Bond
Freight Broker (BMC-84) Bond
Contractors Bond
Auctioneer Bond
Telemarketing Bond


How do I purchase an Alabama surety bond?

NFP, the nation's largest and most reliable surety company, is authorized to issue many different types of surety bonds in Alabama. We can provide the best rates for your bond, as well as the fastest issuance, to get your business off and running.

Our short online application makes it easy. Click below to start the application process today.

Alabama Surety Bond FAQs

To apply for a certificate of title surety bond for a motor vehicle, manufactured home, or vessel:

  • Complete form MVT 10‑1A through Alabama’s Surety Bond Portal.
  • Once approved, you (the applicant) will receive form MVT 10‑1 to be signed by both the applicant and the issuing insurance company, such as NFP.
  • Submit the form within 90 days to a designated agent to complete your title application.
  • Suppliers, permissive suppliers, and terminal operators need bonds equal to twice their average monthly liability, up to $3 million.
  • Exporters, blenders, importers, or distributors require a bond equal to the greater of $2,000 or twice the average monthly tax liability.
  • Transporters and aviation fuel purchasers have no bond requirements.

Premiums typically range from 1 to 10% of the required bond amount. Lower-risk bonds, such as license bonds, commonly land in the 1 to 3% range, while high-risk bonds, like a contractor bond, can cost up to 10% or more, depending on your credit and business financials.

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Explore All Surety Bonds

Browse all of our surety bonds below or connect with the expertise and guidance of one of our surety bond specialists.

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All Types. All States. The very best solutions for your surety bond needs.