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.
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.
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.
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.
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.
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.
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
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.
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.
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.
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.