What is an Alabama Utility Bond?

Get the services that you need through this surety bond!

Alabama Utility BondSeveral utility providers in Alabama will require you to post a surety bond instead of a cash deposit before you are provided the following services:

  • Electricity
  • Gas
  • Water
  • Garbage
  • Others

Find out which one you need, and how to easily apply for a surety bond below!


What is a Utility Bond?

A surety bond is a credit requirement for certain utility services. The bond will serve as a way to guarantee that the consumer will do the following:

  • Pay the bill on time and in full
  • Protect the company’s property within the consumer’s place

If the consumer is unable to do his or her obligations, the utility provider will be financially compensated.


What is the bond amount?

The bond amount will depend on the utility provider.




Alabama Power CompanyApproximately 2x the estimated monthly bill
Huntsville UtilitiesApproximately 2x the estimated highest monthly bill
Bessemer UtilitiesVaries
Florence UtilitiesMinimum of $1,000
Decatur UtilitiesVaries


If you have a stellar credit score, you will be eligible to pay for a low bond premium!

Know what you need to pay today by getting your FREE SURETY BOND QUOTE HERE!


What are the bond conditions?

  • It is a tripartite agreement between the following:

Principal – The utility service consumer

Obligee – The utility provider

Surety – the surety bond company or agent who will issue the bond

  • The surety bond should be issued by a surety bond agent or company that is authorized to conduct business in Alabama
  • The Principal/Consumer is obligated to pay the amount due for the utilities provided by the Obligee
  • If the Principal/Consumer fails to pay the full amount of the bill on time, the Obligee will be eligible to file a claim on the surety bond
  • The utility provider has the right to increase the bond amount if deemed necessary


How can I get a Utility Bond?

You can easily get this type of bond from us!  Don’t worry. We will guide you through the whole process. We will make sure that you will understand what you will be getting into.

First, you need to submit an application.

If you are ready to do that now, you may APPLY HERE!

Once we have received your application, we will ask you to provide us with some important information needed for the underwriting process. These will include the following:

  • Your financial history
  • Your business history
  • Your credit score

An underwriter will carefully evaluate all the information that you will give us. Once this process has been fulfilled, we will immediately issue the bond and send it to you!

Need more information about this bond? Talk to one of our experts at 800-333-7800!

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