Alabama Heating, Air Conditioning and Refrigeration Contractor Bond

Alabama HVAC and Refrigeration Contractor Bond

The Alabama Board of Heating, Air Conditioning and Refrigeration Contractors requires HVAC and refrigeration contractors to purchase a $20,000 surety bond as a prerequisite to obtaining a license. The bond protects the public in the event the contractor violates any state or local building codes or if their work is inadequate.

Jet Surety writes Alabama HVAC and refrigeration contractor bonds for as low as $79 for one year, or you can pay $8 per month.



The above application is for the HVAC and Refrigeration Contractor Bond. If you need a local Alabama Contractor License/Permit bond, apply here.

We provide qualified Alabama contractors with the lowest market rates.

Our industry specific underwriting standards weed out the small percentage of bad applicants that cause all of the claims, ensuring reputable contractors do not overpay.

Don’t subsidize your competition. Get a quote today by filling out the above application.

How Much Does the Alabama HVAC and Refrigeration Contractor Bond Cost?

Rates start at $79 for one year or you can pay just $8 per month. The price of the bond is determined based on the business owner's credit score (soft check) and experience.

Bond TermCost
Monthly$8
1 Year$79
2 Years$139
3 Years$198
Alabama HVAC and Refrigeration Contractor Bond

If you received a lower quote elsewhere, send it to us and we can likely beat it. Our goal is to offer every qualified contractor that passes our underwriting the lowest market rate.

Can I Obtain a Bond With Bad Credit?

Yes, while the owner’s credit score does play a factor in determining the bond’s price, we also employ proprietary underwriting practices that examine industry specific criteria, allowing us to offer lower rates to all qualified applicants, regardless of credit history.

How Do Monthly Payments Work?

Qualified contractors have the option to pay for their bonds on a monthly subscription basis. There is no down payment required and you can cancel the bond at anytime at no cost.

Who Needs an Alabama Heating, Air Conditioning and Refrigeration Contractor Bond?

Alabama Administrative Code 440-X-3-.04 requires all HVAC and refrigeration contractors to purchase a $20,000 bond prior to receiving a license from the Board of Heating, Air Conditioning and Refrigeration Contractors.

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What Does the Alabama HVAC and Refrigeration Contractor Bond Cover?

The bond protects project owners in the event a contractor's work is inadequate or if the contractor violates any state laws or local ordinances while installing, servicing or repairing HVAC or refrigeration systems.

For example, if a homeowner hires a contractor to install a new HVAC system, and the contractor fails to adhere to the terms of the contract, then the homeowner could file a claim against the contractor's bond to recoup their losses.

Unlike traditional forms of insurance, surety bonds do not protect the contractors that purchase them, but rather their customers. Additionally, contractors are required to repay the surety company for all valid claims and claims handling expenses. However, valid claims against Alabama HVAC and Refrigeration Contractor Bonds are completely avoidable and only occur if the contractor violates the law or fails to honor a contract.

Alabama Heating, Air Conditioning and Refrigeration Contractor Bond

How Do Alabama Heating, Air Conditioning and Refrigeration Contractors File Their Bonds?

HVAC and refrigeration contractors can upload their completed bond forms to their license portal or email them to [email protected]abama.gov. After you purchase your bond, Jet will provide you with a digital copy that you can submit to the state. We will also mail you the original bond form with our raised seal.

How Do Alabama Heating, Air Conditioning and Refrigeration Contractors Renew Their Bonds?

Prior to your bond's expiration date, Jet will send you a renewal quote. Once purchased, we will send you a renewal confirmation extending your coverage for an additional term.

How to Obtain an Alabama Heating, Air Conditioning and Refrigeration Contractor License

HVAC and refrigeration contractors in Alabama must meet several requirements prior to receiving a license, including obtaining the necessary experience, passing an exam and submitting an application.

The below steps outline how to obtain an Alabama Heating, Air Conditioning and Refrigeration Contractor License.

Step 1 - Determine the License Classification

Contractors must obtain a distinct license classification corresponding to the type of work they will perform.

Contractors can apply for either one or both license classifications.

Step 2 - Meet the Experience Requirements

Contractors are required to obtain the necessary experience prior to applying for licensure, and can do so through any one of the following ways.

Applicants must submit proof of experience with their license application.

Step 3 - Apply for and Pass the Exam(s)

Contractors must pass an exam corresponding to the license classification(s) they are applying for. The exam is open book, and applications can be submitted online here or mailed to the Board of Heating, Air Conditioning and Refrigeration Contractors at the below address:

P.O. Box 305025
Montgomery, Alabama
36130-5025

There is a $175 fee per exam. Contractors applying for both the heating and air conditioning and refrigeration exams will need to pay $300 with their application.

After receiving the application, the Board will provide the contractor with instructions on how to schedule the exam. Once the contractor passes the exam, the Board will review their application and issue their license, provided there are no other issues with their application.

Step 4 - Purchase a Surety Bond

HVAC and refrigeration contractors must purchase and maintain a $20,000 surety bond.

What Other Bonds Do Alabama Contractors Need?

Residential roofers operating in the state must obtain a $10,000 bond. Many local municipalities require contractors to obtain license/permit bonds prior to beginning work on a project. Additionally, contractors may need to obtain performance and payment bond.

Jet writes all Alabama contractor and construction bonds, and contractors can obtain a quote online here.

Alabama HVAC and Refrigeration Contractor Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: