The $15,000 Heating, Air Conditioning and Refrigeration Contractor Bond is a licensing requirement for HVAC and refrigeration contractors. The Alabama Board of Heating, Air Conditioning and Refrigeration Contractors requires this bond to protect consumers against the contractor’s shoddy service, repair, installation of heating, air conditioning, or refrigeration systems, or failing to complete their work.
With Jet Insurance Company, you buy your bond directly from an insurance carrier that will have your back if you get yourself into hot water.
The cost for a HVAC Bond starts at $100 and most applicants will qualify for this rate! Rates are determined through a soft credit check, but will never be more than $150 as indicated in the chart.
The bond can be purchased, front to back, in minutes online. With Jet you get the option to pay monthly for the bond, starting at $10 a month.
The Contractor License Bond provided by Jet is a guarantee from us to the Board that should you, the contractor, cause fiscal injury to your customer or vendor, then Jet will reimburse the injured party up to the bond limit.
Jet’s role is to give the Board additional confidence that you will follow the rules and regulations set upon you. Think of the surety bond as a tool, used by the Board, to safeguard the public from careless or deliberate actions of the contractor.
You may be thinking why is there even a Board to regulate HVAC work in Alabama? The State Legislated of Alabama has deemed it so, outlining their role and duties in Title 31 of the Code of Alabama. The Board is mandated to protect the public and thus fields complaints arising from the HVAC and Refrigeration industries. We all hope those complaints are unfounded and the bond is just a formality.
It only takes a few minutes to fill out an application and buy your Alabama Contractor License Bond. The application will collect necessary information, like business name, address, and a social security number (for a soft credit check).
Once you have finished the application, you will receive an approved rate ready to purchase. After checkout, you will receive a digital copy of the bond for your records and a receipt of the payment.
Yes, Jet can file your Heating, Air Conditioning and Refrigeration Bond for you! Once you have purchased the bond, Jet will complete the bond form with a surety signature and seal and send it in to the State Board of Heating, Air Conditioning and Refrigeration Contractors.
If you need to submit the original bond yourself, you may choose that option during the payment of the bond. This may be necessary for new licensee applicants to submit their bond with application paperwork. Once it is ready, you must mail the bond to:
State of Alabama
Board of Heating and Air Conditioning Contractors
P.O. Box 305025
Montgomery, AL 36130-5025
Yes, you can receive a prorated refund when you need to cancel your HVAC License Bond if you have paid for the bond on annual terms. Simply send a written request of cancellation to Jet (email to [email protected] works fine) and Jet will notify the Board right away, starting a mandatory 15-day cancellation period. Any time that was left on the bond after those 15 days will be used to calculate a refund.
For monthly payment plans, your payments will stop once the cancellation is finalized with the HACR Board. A refund is not applicable for month-to-month payments.
You will receive a renewal notice for your Heating, Air Conditioning and Refrigeration Bond through mail and email. The bond can be renewed by clicking the link in the email or filling out and returning the mailed notice. Once payment is received, the bond will be extended for another term.
Monthly payment plans will renew automatically and remain in effect until the bond is cancelled.
As an HVAC or refrigeration contractor, you are obligated to uphold the rules and regulations found in Title 34, Chapter 31 of the Code of Alabama. Your duties as a contractor who installs, repairs, or services air conditioning, heating, or refrigeration systems must be carried out to satisfactory levels. If you are found to have performed substandard work, endangered and/or defrauded your consumers, such as taking payment but not completing the job, you will receive a written notice of violation from the Board.
Under Section 34-31-33, a violation may result in you being found guilty of a Class A misdemeanor or getting penalized up to $2,000. At this point, you have the ability to correct your actions to avoid further implications; failure to alleviate violations may lead to a bond claim.
If you receive an Heating, Air Conditioning and Refrigeration Bond claim, Jet will do its best to defend you against false allegations. Through an investigation (that requires honest communications from you and the claimant), the validity of the claim will be determined. If the claim is legitimate, Jet must pay the injured party up to the full limit of the bond to reimburse them for damages.
Once the claim has been paid out, you are ultimately responsible for paying Jet back because your actions brought on this claim. As a surety bond provider, Jet's role is to pay back damaged parties from the actions of the HVAC contractor. This is very different from insurance that protects companies from accidents and Acts of God.. By reimbursing Jet in a timely manner you will restore your bond and prevent any license complications from a lack of bonding.