Alabama's Board of Heating, Air Conditioning and Refrigeration Contractors requires a $20,000 bond when you apply for your contractor license. Ours is $600 flat, which is 3% of the bond amount. The application is five minutes, with no credit check.
















License bonds are the simplest thing in surety. Here's the entire process:
Business details and an effective date. That's the application — no financials, no credit check section, no follow-up scavenger hunt.
License bonds like this are among the thousands of bond types that issue right after purchase. At most, 1–2 business days.
Your executed bond and power of attorney arrive by email, ready to file with your HVAC/refrigeration contractor license application. Wet-ink original mailed on request.
$20,000 bond × 3% = $600, one-time per term. Fixed amount, fixed price, multi-year if you want it.
Alabama licenses heating, air conditioning, and refrigeration contractors through a dedicated state Board, and conditions the license on a $20,000 surety bond. The bond is a consumer-and-code-compliance guarantee: it stands behind your obligation to install, repair, and service systems in line with Alabama building codes and the ordinances of the counties and municipalities where you work.
It's a three-party arrangement: you (the principal), the surety carrier, and the State of Alabama (the obligee), with your customers as the protected parties. If a contractor's defective work or code violation causes a loss and the harmed party recovers against the bond, you repay the surety — it is not insurance for you.
The bond is set by Board rule (Alabama Administrative Code 440-X-3-.04) at $20,000. Older references cite a $15,000 figure, so we phrase this conservatively — confirm the current amount on your Board application, and we'll issue whichever amount the Board requires. The bond must stay on file for the life of your license.
These are the actual issuing fields — no credit check section, because this bond doesn't have one.
Start the application →If yours isn't here, the bond team can usually answer within the hour.
$600 flat, five-minute application, bond often issued in the same sitting. Free until issued.