Bond and insurance by trade in Alabama
Bond and insurance rules for electrical, plumbing and HVAC: check with Electrical Contractors Board, Plumbers and Gas Fitters Examiners Board, Board of Heating, Air Conditioning and Refrigeration Contractors.
How much is the contractor bond in Alabama?
Alabama does not require a bond for a general contractor license. Applicants instead show a minimum net worth and working capital of $10,000 on a current financial statement prepared by a CPA, which sets the bid limit.1
What general liability insurance does Alabama require?
The Alabama Licensing Board for General Contractors does not require liability insurance as a condition of a license; neither the licensing law (Code of Alabama 34-8-2) nor the application instructions list it.2
Can an Alabama contractor be exempt from workers' comp?
Workers' compensation insurance is required if you regularly employ five or more employees. Employers with fewer than five employees are exempt, except those building new single-family detached homes, who must carry it with any number of employees.3
What is a certificate of insurance?
It's the one-page summary (usually an ACORD 25 form) a contractor's agent issues to show the policies, limits and dates in force. How to read and check one
Sources
- Licensing Board for General Contractors: bond (genconbd.alabama.gov, 2026-10-27)
- Licensing Board for General Contractors: insurance (alison.legislature.state.al.us, 2026-10-27)
- Licensing Board for General Contractors: workers' comp (alison.legislature.state.al.us, 2026-10-27)
- AL Licensing Board for General Contractors full roster (licensesearch.alabama.gov) (genconbd.alabama.gov, 2026-10-27)
- Home Builders Licensure Board: roofing bond (hblb.alabama.gov)