Chickasaw Contractor License Bond

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Chickasaw Contractor License Bond: A Comprehensive Guide

This guide provides information for insurance agents to help their customers obtain a Chickasaw Contractor License Bond

At a Glance:

  • Lowest Cost: $100 per year or $10 per month
  • Bond Amount: $10,000
  • Who Needs it: All building, plumbing, electrical, and HVAC contractors operating in Chickasaw, Alabama
  • Purpose: To ensure the public will receive compensation for any damages should the contractor violate licensing law
  • Who Requires the Bond: The City of Chickasaw
Chickasaw Contractor License Bond Form
Chickasaw Contractor License Bond Form


Chickasaw Municipal Code 11-102 requires all contractors operating in the city to obtain a business license and purchase a $10,000 surety bond. The Chickasaw city council enacted these requirements to ensure that contractors engage in ethical business practices. Contractors are unable to begin work on projects until they meet all license and surety bond requirements.

What is the Purpose of the Chickasaw Contractor License Bond?

Chickasaw requires all contractors operating in the city to purchase a surety bond as a prerequisite to conducting business. The bond ensures that the public will receive compensation for financial harm if the contractor fails to comply with the regulations set forth in Chickasaw Municipal Code 11-103. Specifically, the bond protects the public in the event the contractor engages in any acts of fraud or breaches any contracts made with consumers. In short, the bond is a type of insurance that protects the public if the contractor acts unethically.

How Can an Insurance Agent Obtain a Chickasaw Contractor License Surety Bond?

BondExchange makes obtaining a Chickasaw Contractor License bond easy. Simply log in to your account and use our keyword search to find the “contractor” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.

At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

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Is a Credit Check Required for the Chickasaw Contractor License Bond?

No, a credit check is not required for the Chickasaw Contractor License Bond. Because the bond is considered relatively low risk, the same low rate is offered to all contractors operating in Chickasaw, regardless of their credit history.

How Much Does the Chickasaw Contractor License Bond Cost?

The Chickasaw Contractor License bond costs just $100 a year or $10 per month.

Who is Required to Purchase the Bond?

Chickasaw requires all plumbing, building, electrical, and HVAC contractors operating in the city to purchase a $10,000 surety bond before conducting business.

Chickasaw Contractor License Bond

BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.

How do Contractors Apply for a Business License in Chickasaw?

Contractors in Chickasaw must navigate several steps to secure their license. Below are the general guidelines, but applicants should refer to the application form for details on the process.

License Term: All Chickasaw Business Licenses expire on January 1 of each year and must be renewed before the expiration date

Step 1 – Purchase a Surety Bond

Contractors must purchase and maintain a $10,000 surety bond

Step 2 – Obtain a State License

Contractors must obtain a state license, corresponding to the type of work they perform, before applying for a Chickasaw business license. Below are different state licenses required for contractors operating in Chickasaw:

Step 3 – Complete the Application

All Chickasaw Business License applications can be completed online here. Contractors must complete the application in its entirety and pay all required fees.

How Do Contractors Renew Their Chickasaw Business License?

Contractors can renew their business licenses online here. All Chickasaw Businesses Licenses expire renew annually on January 1st of each year and must be renewed before the expiration date.

How do Contractors in Chickasaw Obtain a Permit?

Contractors in Chickasaw may need to obtain a permit prior to beginning certain construction work. To obtain a permit, contractors must apply in person at the City Hall Business Office.

How Do Contractors in Chickasaw File Their Bonds?

Contractors should deliver their completed bond form, including the power of attorney, to City Hall Business Office or mail it to the following address: mail the comp bond form, including the power of attorney, to the following address:

224 N Craft Highway
P.O. Box 11307
Chickasaw, AL 36671

The bond requires signatures from both the surety company that issues the bond and from the contractor. The surety company should include the following information on the bond form:

  • The legal name of entity/individual(s) buying the bond
  • Surety company’s name
  • Date the bond is signed

What Can Contractors in Chickasaw Do to Avoid Claims Against Their Bonds?

To avoid claims on their bonds, Contractors  in Chickasaw must follow all provisions contained within their bond form, including some of the most important issues below that tend to cause claims:

  • Do not engage in any acts of fraud
  • Do not breach any contracts made with consumers

What Other Insurance Products Can Agents Offer in Chickasaw?

Most reputable contractors will purchase liability insurance. Bonds are our only business at BondExchange, so we do not issue liability insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.

How Can Insurance Agents Prospect for Chickasaw License/Permit Customers?

Chickasaw unfortunately does not provide a public database to search for active contractors in the city. We suggest contacting the city directly to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

Chickasaw Contractor License Bond