Alabama Onsite Wastewater Bond

Alabama Onsite Wastewater Performance Bond

The Performance Bond for the Alabama Onsite Wastewater Board (AOWB), otherwise known as the Onsite Wastewater Bond, must be held by licensees who manage or install sewage systems on residential properties in rural areas. The bond is either a $15,000 or $30,000 limit (depending on the type of license) and is held to reimburse homeowners who are damaged by the licensee’s failure to fix the sewage system that was installed.


Choosing Jet Insurance Company for your Onsite Wastewater Bond gives you direct contact with the insurance company that is backing your bond. When you are pushed into a corner with a false claim on the bond, our team won’t leave you in the dumps. 

What Is the Lowest Price for the Onsite Wastewater Bond?

The Onsite Wastewater Bond starts at just $11 monthly or $113 annually with Jet. The rates approved depend on the limit required ($15,000 or $30,000) and a personal credit check. The chart below shows the different available rates for a preferred credit tier.

Bond LimitMonthlyAnnual2 Years3 Years
Alabama Onsite Wastewater Bond Rates

Our team takes away pesky middlemen to get you your bond quicker and cheaper. Think of the bond process without waiting on multiple people to review your quote or add in broker fees as they please — that’s the kind of thing Jet has taken out of the equation. 

What Limit Do I Need for My Onsite Wastewater Bond?

The Onsite Wastewater Bond has two limits that it can be issued at: $15,000 and $30,000. The limit depends on the license you are applying for with the AOWB, but in some cases, the Board will determine which limit is appropriate for your license. 

The license types for a $15,000 limit are:

The license types for $30,000 limit:

Why Is the Onsite Wastewater Bond Required?

The Onsite Wastewater Bond serves as a way to reimburse homeowners for the licensee’s failure to complete installation or service the sewage or waste system that is on their land. The AOWB requires this bond as part of its duties to regulate the manufacture, installation, and servicing of wastewater systems on residential land in rural communities, protecting residents who are not connected to the public sewage system from being left without a way to remove wastewater.

How Does the Application Process Work for the Onsite Wastewater Bond With Jet?

You can apply for your Onsite Wastewater Bond within minutes through Jet’s streamlined application. The application asks only for the necessary information, like business details and some personal information (like a social security number that is used for the soft credit check). 

Once you complete the application, you will receive an approved quote that you can purchase right away! A receipt and a digital copy of the bond will be emailed to you for your records.

Can Jet File the Onsite Wastewater Bond for Me?

Yes, Jet will file your Onsite Wastewater Bond for you! After you make payment, Jet will prepare the bond form and mail it off to the Alabama Onsite Wastewater Board for filing. If you have other paperwork that needs to be filed with the bond, you can request that the bond be mailed to you during checkout.

The original bond and any additional paperwork must be submitted to:

State of Alabama Onsite Wastewater Board
P.O. Box 303552
Montgomery, AL 36104

What Happens if I Need to Cancel My Onsite Wastewater Bond?

If there comes a time when you need to cancel your Onsite Wastewater Bond with Jet, just send us a letter (or email to to request cancellation. Our team will notify the AOWB of the cancellation right away, and they will start the 45-day period before the cancellation is final. The time left on the bond after these 45 days will be calculated into a refund if you had paid for the bond in full at the time of purchase. 

With monthly payments, the process is similar: send a written request to Jet, we notify the AOWB and they start the 45-day cancellation period. However, your payments will continue during this time and will be stopped once the bond is no longer in effect.

How to Renew the Onsite Wastewater Performance Bond

When your Onsite Wastewater Bond is coming up for renewal, Jet will send you a renewal invoice ahead of time through mail and email. Since licenses regulated by the Onsite Wastewater Board expire at the end of the calendar year, you will receive your renewal invoice around this time. All you have to do is click the link in the email or mail back the completed form to pay for the new term and complete your renewal. 

If you are on the monthly payment plan, you don’t need to worry about renewing your bond! Each payment that is received will keep your bond active. 

Renewing your bond is an important step in renewing your license; failure to carry bond coverage will lead to the revocation of your license.

How to Avoid Onsite Wastewater Bond Claims

You can prevent claims on your Onsite Wastewater Bond by making sure to fulfill your obligations as a installer, manufacturer, pumper, or portable restroom licensee as indicated in Section 34-21A of the Code of Alabama. This includes making sure that the installation of a waste or sewage system is complete and making any necessary repairs or servicing on a system that you installed if it has failed. 

If there are any complaints or concerns about your performance (think misconduct, fraud, or illegal actions) as an onsite wastewater licensee, you will be reviewed by the AOWB under the Code of Alabama Section 34-21A-22. Following the review, the Board may proceed with one or more of the disciplinary actions listed in Section 34-21A-25, such as issuing reprimands, penalizing you up to $1,000, or revoking your license. 

If the complaint is not resolved or has injured the homeowner, the Board can file a claim against your bond to be reimbursed for the damages.

What Happens if I Get an Onsite Wastewater Bond Claim?

Once Jet receives a claim notice, our team will investigate its validity, collecting all necessary information from you and the claimant. It is important that you provide honest and open communication during this time. If the claim holds up, Jet must pay the claimant in the amount of the claim, up to the full limit of the bond. 

The bond acts like an extension of credit, and it pays the claimant right away as restitution. However, the bond still needs to be restored to its full limit for you to carry the required amount of coverage. You will need to pay Jet back in the amount of the claim to restore your bond and avoid license revocation.

Alabama Onsite Wastewater Performance Bond Form