New Albany contractor license bonds.
Quote on review.
Before the City of New Albany, Mississippi issues a privilege license or building permit, it requires a license bond payable to the city from residential, commercial and licensed-trade contractors. Section 7-6 of the city code sets the codified amount at $10,000, written for one year. The price is quoted on review.
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How much does a New Albany contractor license bond cost?
It is underwritten: the premium is quoted from the bond amount and your financial picture, so there is no flat price to show.
Built around your New Albany license and permit.
New Albany will not issue the privilege license or the building permit until the license bond is on file with the city. Here is the whole process, from quote to permit:
Send us your business details
Apply online with your entity type, business address, the bond amount the city asked for, and your type of work or contractor classification. There is no credit section and no SSN field on this application.
A surety specialist prices it
The city code sets the penal sum, so the review is about your trade and your business, not about sizing. A specialist confirms your exact premium and sends it back for approval.
Pay, e-sign & file with the city
Once you accept the quote and pay, the executed bond arrives by email, written in your name or your privilege license holder's name and payable to the City of New Albany, ready to submit with your license and permit paperwork. Wet-ink original mailed on request.
What it is and who needs it.
What the New Albany license bond guarantees
New Albany licenses and bonds its contractors through Section 7-6 of its Code of Ordinances, "Licenses and bonds required for builders and contractors." The section has three parts, and each one carries the same bond: (a) residential building contractors and remodelers, (b) electrical and mechanical contractors, plumbers, heating and air conditioning contractors, water and sewer contractors, gas fitters and roofing contractors, and (c) commercial contractors. In each part, a license bond must be submitted to the city in the name of the contractor or privilege license holder before the city issues a building permit, and for residential and commercial contractors before it issues a privilege license as well.
The ordinance sets the terms plainly. The bond is payable to the city, the codified amount is $10,000, it is written to expire one year from the date of issuance, and it must come from a surety company acceptable to the city building inspector. The city also charges a separate $25 contractor license fee, good for one year. A Board of Aldermen agenda from June 2023 lists an amendment to Section 7-6 whose text is not published online, so confirm the current amount with the Building Inspector's office before you file — we write the bond for the amount the city gives you.
This is a code-compliance bond that runs to the city, not a payment bond for your customers. If you violate the construction codes the city has adopted and do not correct the violation after a mailed notice and at least ten calendar days to fix it, the city may withhold further permits and call upon the license bond, using the proceeds to correct the violation itself. It is not insurance for you: if the surety pays the city, you repay the surety. Contractors who build to code treat it as a routine annual line item.
You need this bond if you’re
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
Term and renewal are set in the underwriter's quote.
Keep the bond in force for as long as the obligation behind it runs.
How to file it
Pay, e-sign & file with the city. Once you accept the quote and pay, the executed bond arrives by email, written in your name or your privilege license holder's name and payable to the City of New Albany, ready to submit with your license and permit paperwork. Wet-ink original mailed on request.
What sets the price
This bond is underwritten: the premium is quoted from the bond amount and your financial picture, so there is no flat price to show.
One application, one specialist review.
These are the actual issuing fields — your entity type, business address, the bond amount, and your type of work or contractor classification. There is no credit section on this bond. Submit once and a surety specialist returns your exact price, typically within one business day. Free until your bond is issued.
Start the application →Common questions.
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Get the New Albany license bond off your permit checklist.
Send us your business details and type of work, and a surety specialist returns your price, typically within one business day. Free until issued.