Alabama Transient Merchant Bond

Alabama Transient Merchant Bond

In Alabama, certain cities and counties require a Transient Merchant Bond for peddlers, vendors, solicitors, canvassers, and transient merchants selling goods and/or services within the city or county limits. The surety bond, provided by Jet, is a guarantee to the counties and cities (obligee) that all due taxes and fees will be paid and the merchant will act in accordance with the applicable statutes.

VIEW YOUR BOND PRICE

Whether applying for a first-time permit or renewing a permit, Jet will help you get the required Transient Merchant Bond at an affordable rate.

What Is the Lowest Price for the Transient Merchant Bond?

The lowest price for the Transient Merchant Bond at Jet is $100 for one year. Applicants with bond limits up to $25,000 will be approved automatically and can purchase the bond instantly online. Any limits exceeding $50,000 will require a quick review of the applicant’s credit and the approved rate will be sent to you via email shortly after.

Bond LimitCost
$5,000$100
$25,000$125
$50,000$250
Alabama Transient Merchant Bond Cost

Depending on where your permit is issued, the bond limit varies. Refer to the table below for the bond limit and corresponding legislation:

City/CountyBond NameBond Limit Calculation
City of BirminghamTransient Dealer$5,000 or 4% of estimated sales, whichever is more
City of DothanTransient Merchant$2,500 - $25,000, depending on estimated sales, or 10% of estimated sales, whichever is more
City of HomewoodPeddler/Itinerant Merchant$5,000 or 10% minimum of estimated sales, whichever is less
All Alabama CountiesTransient Merchant$2,000 or 5% of the wholesale value of merchandise/services offered
Alabama Transient Merchant Bond Limit Calculation

Why Is the Transient Merchant Bond Required in Alabama?

Alabama cities and counties rely on businesses to pay their taxes and license fees. The government expects transient merchants to follow the applicable statutes to operate their business legally and ethically. Should damages occur to the public the governing entity must apply the investigation and subsequent disciplinary action if necessary. 

The Transient Merchant Bond is a tool used to provide financial relief to anyone harmed by a merchant’s actions. By Jet issuing this license bond, the obligee (governing entity) is protected from not receiving due taxes, fees, and fines, and the public is protected from a merchant’s misrepresentation or fraud.

How to Apply for the Alabama Transient Merchant Bond

Jet’s application process can be completed in just minutes. Click the button below to be taken through the step-by-step application which asks for basic information such as your name, city/county of operation, and a few other quick items. The application may ask for your social security number for higher bonding limits, but don’t worry as the soft credit pull doesn’t affect your score.

A copy of the bond will be available immediately after purchase. If you have a bond limit over $50,000, Jet will send you an approved rate which can be purchased online and then you will receive a copy of the bond and receipt.

Can Jet File the Transient Merchant Bond for Me?

Yes! Once payment is made, Jet will send the original bond to the appropriate city or county for you free of charge. If you wish to send in the bond yourself, that option is given during payment. 

Based on your business location, find the different addresses below for where to send in paperwork:

Birmingham
City of Birmingham
Tax and License (Revenue) Administration Division
City Hall, Room TL-100
710 North 20th St
Birmingham, AL 35203

Dothan
Dothan City Clerk
P.O. Box 2128
Dothan, AL 36302

Homewood
Homewood Police Department
2850 19th St S
Homewood, Al 35209

Can I Cancel My Transient Merchant Bond and Get a Refund?

It depends where the permit is issued. Some obligees require the bond to be in effect for one year following the date of the last sale and until any open judgments or actions have been paid and satisfied. If a transient merchant fails to pay for the bond, Jet can request cancellation with the governing entity.

Does the Transient Merchant Bond Expire?

The bond will stay active as long as payments when the bond term expires are made. Jet sends you a notice via both email and mail to have ample time to make payment if you plan to continue the permit. You are able to go online and pay or send in payment through the mail. No additional paperwork is required.

Some obligees require the bond to stay in effect for an additional year after the last purchase is made to account for any owed payments to the city/county or claims filed by a customer. Jet will require payment for the additional year as the bond must remain active.

If you have questions, just email [email protected].

How Does a Peddler, Solicitor, Merchant, Vendor, or Canvasser Avoid Bond Claims?

Although each city and county has unique statutes, the Transient Merchant Bond generally protects both the obligee (government entity such as the county or city) and the public from monetary loss. Following the statutes governing transient trade is the best way to ensure a smooth process. 

Merchants can receive a bond claim for actions such as nonpayment of taxes, fines, and fees to the county or city. Selling faulty items or making false claims about a product/service will land the merchant in hot water from the public. Both a merchant’s customer and the governing entity can file bond claims. Prior to a claim being filed on the bond, merchants may be subject to permit suspension or revocation, civil fines, and other disciplinary actions from the obligee. If disciplinary action is being taken against the permit, it is in the best interest of the merchant to be responsive and comply with the county or city.

What Happens if I Get a Transient Merchant Bond Claim?

If a claim is filed on your Transient Merchant Bond, Jet takes the time to review all details to ensure the allegation is not false and provide a defense. However, if the claim is valid, Jet will pay the claimant up to the full bond amount to reimburse them for their losses. The bond is essentially an extension of credit, and you are responsible for your actions, so the amount paid out for the claim must be paid back to Jet. Failure to resolve a claim will result in future difficulties receiving the permit and bond needed to be a merchant, peddler, vendor, solicitor, or canvasser.

Alabama Transient Merchant 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: