Alabama scrap tire processor bonds.
From $100.
A permitted scrap tire processor in Alabama posts financial assurance to the Department of Environmental Management (ADEM) to cover closure and remediation of the facility. A surety bond is one accepted form. ADEM sets the amount, and the premium is 0.5% of the bond amount, $100 minimum.
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How much does an Alabama scrap tire processor bond cost?
0.5% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Apply to issued in one sitting.
No underwriting queue for the standard scrap tire bond — enter your amount, pay, and file with ADEM. Here is the whole thing:
Apply online
Your business details, the financial-assurance amount ADEM set, and the effective date — that is the application.
Issued on the spot
No waiting — the executed bond is generated as soon as you pay. No credit check up to $100,000.
File with ADEM
Submit the executed bond with your scrap tire processor permit application or renewal, with ADEM as the obligee. Wet-ink originals mailed on request.
What it is and who needs it.
What the scrap tire bond actually covers
Alabama regulates scrap tire processing under the Scrap Tire Environmental Quality Act (Code of Ala. § 22-40A) and ADEM Administrative Code Division 335-4. A permitted processor must provide financial assurance so the state is not left paying to clean up an abandoned or damaged facility.
The required amount is the sum of closure (safely shutting the facility down) and remediation (cleaning up after an incident such as a fire). ADEM sets minimums — generally $20,000 for closure and $20,000 for remediation — and the figure scales with the volume of tire material stored and processed, so a larger operation carries a larger bond.
A surety bond, with the processor as principal and ADEM as the obligee, is one of the accepted forms of financial assurance and must stay in effect for the life of the permit. If ADEM draws on the bond to fund closure or remediation, you repay the surety — it is not insurance for you. Enter the amount on your permit; no credit check up to $100,000, and premiums start from $100 with the exact price at the application.
You need this bond if you are
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with ADEM. Submit the executed bond with your scrap tire processor permit application or renewal, with ADEM as the obligee. Wet-ink originals mailed on request.
What sets the price
The premium is 0.5% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $100,000. Above that, the carrier may run a soft pull, which never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued on the spot.
Submit the application with the financial-assurance amount ADEM set — the executed bond is generated instantly, ready to file.
Start the application →Common questions.
Other Alabama bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Scrap tire bond, issued today.
Premiums from $100. Enter the amount ADEM set and file the same day.