Alabamacontractor insurance & bonding requirements
Updated April 2026 · Source: AL Home Builders Licensure Board Rule 480-X-6
Minimum requirements
- General liability
- $500,000
- Surety bond
- $10,000
- Workers' comp
- Required for crews
Licensed general contractors in Alabamacarry commercial insurance so that if a crew member gets injured on-site, a homeowner's appliance is damaged during demo, or a neighboring property suffers an impact from construction, the contractor's policy (not the homeowner's) pays the claim. AskBaily does not match homeowners to contractors below these minimums.
Standing $10K bond filed with HBLB; project-specific bonds may be additionally required by AHJ.
Common questions
What insurance does a Alabama general contractor need?
A Alabama general contractor needs at minimum $500,000 general liability coverage. Workers' compensation insurance is required for crews. Per AL Home Builders Licensure Board Rule 480-X-6.
How much is the surety bond for Alabama contractors?
Alabama requires a minimum $10,000 surety bond at the license level. Some project-size tiers or local authorities require additional project-specific bonds. See AL Home Builders Licensure Board Rule 480-X-6 for the current schedule.
Who is the licensing authority in Alabama?
AL Home Builders Licensure Board Rule 480-X-6 is the authority for Alabama contractor oversight. Public license lookup is available at https://hblb.alabama.gov/.
How does AskBaily verify contractors in Alabama?
AskBaily runs automated verification against AL Home Builders Licensure Board Rule 480-X-6 before a contractor is matched to a homeowner project. The pro's license number is validated live at signup.
What happens if a contractor doesn't carry the required insurance?
Underinsured contractors are removed from the AskBaily match pool immediately. A homeowner who hires an unlicensed or underinsured contractor in Alabama can lose the right to mechanic's lien protection, may be held liable for on-site injuries, and forfeits protection under AL Home Builders Licensure Board Rule 480-X-6. That's why AskBaily's policy is to match only verified pros.
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