Alabama Scrap Tire Transporter Bond

Alabama Scrap Tire Transporter Bond

Scrap tire transporters in Alabama who are transporting more than eight scrap tires at a time are required to have a permit through the Alabama Department of Environmental Management (ADEM). The ADEM mandates that transporters secure a surety bond to receive their permit and keep it active. Jet Insurance Company offers the Scrap Tire Transporter Bond as protection for the ADEM and Alabama’s public if the transporter acts fraudulently or negligently, leading to financial damage.

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With Jet’s streamlined application, you can get your bond quickly and at an affordable rate. Whether you are applying for your first Scrap Tire Transporter Bond or renewing it, Jet is here to help.

What Is the Cost of the Alabama Scrap Tire Transporter Bond?

It really depends on the bond limit and your personal credit, but Jet has rates as low as $100 for one year. The ADEM will let you know what bond limit is required to receive the permit, but the minimum limit is $10,000. The chart below shows different price options for the $10,000 bond limit at the preferred credit tier.

Bond LimitMonthlyAnnual
$10,000$10$100
$25,000$25$250
$50,000$50$500
Rates for Scrap Tire Transporter Bond

At Jet, we believe in providing payment options that everyone can afford. That’s why we offer the monthly subscription so you can pay a small amount each month rather than a large lump sum. No other surety carrier currently offers this for the Scrap Tire Transporter Bond.

Some tire transporters prefer a three-year bond term to line with the permit’s three-year term. 

Why Does the Department of Environmental Management Require This Bond?

To put it simply, the ADEM exists to protect Alabama’s people and lands. They put the brakes on illegal licensee actions, such as a scrap tire transporter improperly disposing of tires. The State of Alabama generates over five million scrap tires on an annual basis. Two million of those are recycled per year and another two million are properly disposed of in landfills. That leaves a whopping one million that are illegally disposed of, which presents an issue to both the environment and the citizens of Alabama. The bond ensures that if a transporter acts illegally or unethically, there is a course of action to recover the costs to fix the issue. 

How to Apply for the Scrap Tire Transporter Bond With Jet

Jet has streamlined our application to provide you with a simple process. Once you have submitted some basic information, a Jet underwriter will review the details and let you know the next steps. A soft credit check is conducted (don’t worry, it doesn’t leave a hard inquiry on your credit) to get you an approved rate, which will be sent to your email. You will be able to provide payment directly online.

How Does the Bond Get Filed to the ADEM?

The Department of Environmental Management requires you to send them the original bond. Jet will send you the bond form with our signature and seal. You are responsible to sign the bond, have all partners sign the bond (if applicable), and then file the bond to:

Alabama Department of Environmental Management
Attn: Land Division
PO Box 301463
Montgomery, AL 36130

Can I Cancel My Scrap Tire Transporter Bond and Get a Refund?

You may request cancellation of the bond if your permit is ending or if you have another surety bond to replace the current one, but the bond must be kept on file for the duration of your permit. Just email us at [email protected] and we will let the ADEM know of your intent to cancel. The ADEM must release you and the surety company (Jet) of liability, which usually doesn’t take too long. Once released of liability, we will either stop the payments if you are paying monthly or evaluate any time left of the bond if you paid for the bond in full. Any unused payment on a bond that was paid for in full will be returned to you.

How to Renew the Alabama Scrap Tire Transporter Bond

Paying monthly? There is no renewal process! If Jet continues to receive payments from your preferred account, your bond will stay active until cancellation is requested. 

Paid for the bond in full? Jet will send you a renewal invoice with ample time to provide payment for the upcoming term. The invoice is sent via email and mail, so you can either quickly online or mail your payment (credit card information or check) with the invoice.

How Does a Transporter of Scrap Tires Avoid Bond Claims?

Work diligently to comply with the Alabama Scrap Tire Environmental Quality Act (Code of Alabama, 1975, Title 22, Chapter 40A) and you should be able to steer away claims. There is also this ADEM scrap tire transporters information sheet that touches on responsibilities. Here is a list of actions that could end in a bond claim:

Permit infractions will lead to disciplinary action from the Department of Environmental Management, including fees, civil penalties, permit revocation, prison time, and a bond claim. Jet advises you to work alongside the ADEM to correct any issues and tread lightly so a bond claim or other severe action isn’t taken.

What Happens if I Get a Scrap Tire Transporter Bond Claim?

Generally, the ADEM does a thorough investigation and even involves the court to resolve problems that have led to financial loss. However, Jet wants to protect you from any false claims, so we still do our due diligence and review the details prior to making a claim payment.

That said, Jet will need to pay out any valid claims up to the bond amount. Jet only pays out a claim after it has been proved that your actions caused financial harm, which means you must pay us back to restore the bond to its full capacity. Keep in mind that if you get a claim, it will be hard to get a surety bond and permit in the future.

Alabama Scrap Tire Transporter 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: