Contractors, subcontractors, and builders working in Mobile, Alabama must submit a $10,000 Contractor Bond as part of their licensing requirements. Through the surety bond, Jet Insurance Company protects the City and public against damages from contractors who break the obligations of their license and applicable legislation regulations.
Buying your Contractor Bond with Jet shows the City of Mobile that you are committing to the City's mission of keeping its citizens safe.
With Jet, your Contractor Bond costs only $100 a year, guaranteed! You choose the way you pay for your bond, whether that’s $10 a month or paying for multiple years at a time. The chart below shows the term options with the set rate.
When you click the button to purchase your Contractor Bond, you will input some basic information about your business that is needed for the bond form and as contact information. After that, you will be able to put in payment information to purchase your bond at the term you’d like. Once the purchase is complete, you will receive an email confirmation with a digital copy of your bond and a receipt.
You don’t have to worry about filing your bond, Jet will do it for you! After your purchase is complete, Jet will prepare your Contractor Bond and submit it to the City of Mobile. The bond will stay on file until cancellation is requested.
You can request cancellation if you no longer need the bond and Jet will notify the City to begin the 35 day grace period before the cancellation is final. For bonds that were paid in full, you may receive a refund on any remaining time left after the cancellation is complete; monthly payments are not applicable for a refund. Jet has the right to request cancellation when payment on the bond is not made, whether that is a missed monthly payment or the failure to renew your bond.
When your bond term is ending, Jet will send you a notice to renew with plenty of time to submit the renewal premium. All you have to do to keep your bond active is pay for the upcoming term, whether it’s online or through the mail. If you are part of the monthly payment program, you don’t need to worry about renewals — your bond remains active with each payment that is received.
As a contractor in Mobile involved in constructing, repairing, or installing structures, you must follow the obligations of your contractor license. Additionally, you must comply with Chapter 11, Article 1 of the Mobile Code of Ordinances, otherwise known as the Building Code, as well as any other legislation that pertains to contracting or building in Mobile or the State of Alabama.
The easiest way to avoid claims is by making sure you are not being negligent in your business or providing shoddy work as indicated in Section 11-5 of the Mobile Code of Ordinances. If any complaint comes pertaining to your (or any employee’s) work, whether from the City or one of your customers, making the repairs needed will alleviate the complaint and the issue can be resolved right then and there. However, if you don’t make corrections to the poor workmanship, the complaint may escalate into a claim.
If you receive a claim filing, you need to report it to Jet right away. Our team will look into the evidence provided by you and the claimant (whoever filed the claim). We will try our best to defend you, but if the claim is valid, Jet must fulfill the terms of the bond and pay the claimant up to the full $10,000 limit. This takes care of any damages the claimant suffered, but you are still responsible for paying back the amount that was paid out to restore your bond. Failure to do so will lead to license complications.
Yes, contractors who carry a Mobile Contractor Bond may also need to be licensed and bonded by the state. Some of the state bonds that may also apply are: