The Alabama Heating and Air Conditioning and Refrigeration Contractor Bond is a surety bond required by the Alabama Board of Heating, Air Conditioning, and Refrigeration Contractors (HACR) to operate as an HVAC contractor within the state.
As with other surety bonds, this bond is a contract between three parties: the principal (the HVAC contractor), the obligee (HACR), and the surety company. The bond ensures the principal adheres to all building codes and that it fulfills contractual duties in the state of Alabama, as stipulated in the bonding agreement and by the principal’s contractor license/registration.
The bond provides financial protection to the general public from any losses resulting from the principal's misconduct. If an injured party files a claim against the principal’s bond, the surety company will conduct an investigation into the validity of the claim and, if it is valid, compensate the claimant up to the bond amount. Valid claims may relate to damages to property, physical injury, faulty construction, and non-compliance with contractual obligations.
When the surety compensates a claimant for their losses, the principal is required to reimburse the surety company for the claim, plus any costs and fees associated with the investigation of that claim.
The Alabama Heating and Air Conditioning and Refrigeration Contractor Bond is required for all individuals and businesses operating as HVAC contractors in the state. According to the state's code, an Alabama HVAC Contractor is anyone who executes the installation, repair, or service of heating, air conditioning, and refrigeration systems for clients.
Please note that this specific bond is called a “performance bond” by the obligee; however, it functions as a license and permit bond. This HVAC bond is not to be confused with a Payment and Performance bond required for large construction projects. It is simply a requirement for Alabama’s HVAC contractor licensing/registration process.
This bond has a year-long bond term with a set expiration date of December 31, regardless of the date of issuance.
The Alabama Heating and Air Conditioning and Refrigeration Contractor Bond requires a bond amount of $15,000. Fortunately, you do not have to pay the entire bond amount.
With EZ Surety Bonds, you can purchase this bond instantly online for $125 for a 1-year term or $250 for a 3-year term after completing our quick online application. Unlike other license bonds, there is no credit check required for this contractor license bond.
The obligee, or entity that requires the Alabama HVAC Contractor’s Performance Bond, is the Alabama Board of Heating, Air Conditioning, and Refrigeration Contractors (HACR). Here is their contact information:
State of Alabama Board of Heating,
Air Conditioning & Refrigeration Contractors
100 N. Union Street
Suite 986
Montgomery, AL 36104
Phone: (334) 242-5550
EZ Surety Bonds offers fast, easy, and free bond quotes, regardless of the type of bond you need. Get your AL HVAC Contractor Bond today by filling out our quick online form, and submitting your payment. If your obligee requires the original bond document, you will receive your original bond through the mail.
Our surety experts are always happy to assist. If you have any further questions, please do not hesitate to contact us at bonds@southcoastsurety.com or call us at 1-866-546-4606.
There are several steps to becoming an Alabama HVAC Contractor:
You can find more details about the application process on the HACR instructions page.
With a bond amount of $15,000, the Alabama Heating and Air Conditioning and Refrigeration Contractor Bond can be purchased online for as low as $125 for a 1-year term or $250 for a 3-year term. Getting your bond is as easy as filling out our quick online application. There is no credit check required.
The original bond will be mailed to you after you have purchased your Alabama HVAC Contractor's Performance Bond. Most obligees require you to file the original bond with them, while others may accept an electronic version. Every obligee has their own unique filing requirements so be sure to confirm the requirements of your obligee before doing anything with your original bond document.
You’ll know if you need a surety bond because some entity will have required you to obtain one. They must also inform you of which specific bond type you’ll need. There are thousands of bonds across the country, all of which vary by state and industry.
Visit EZSuretyBonds.com to browse hundreds of bonds by state, type, or industry.
