Surety Bonds for Utility Hookups

In Alabama, you need to put down a deposit to turn on your business’s power, water, or gas for the first time.

Most of the power companies in Alabama require businesses to pay a deposit equal to two times your estimated highest bill. One municipal utility company in Montgomery requires three times your estimated highest bill or a minimum of $100 to connect water to a commercial establishment.

You can easily need to pay hundreds or even a few thousand dollars to get utility hookups for your new home or apartment. That is unless you get an Alabama surety bond from Surety Ins Inc.

What’s a surety bond for a utility hookup?

A surety bond is a way to get your utility hookups without laying out a lot of cash deposits.

You pay a small annual premium to Surety Ins Inc. of Alabama, and they guarantee that your bills will be paid. The amount of your premium depends on your business’s credit history, but it is always a lot less than paying the utility company directly.

How much less?

For a $5,000 surety bond, you might pay a $100 annual premium. For a $20,000 surety bond, you might pay $500.

In most cases, getting an Alabama surety bond involves a "soft" inquiry into your personal credit report. If your credit history is poor, you may have to pay up to 15 percent of your bond amount in annual premiums. In uncommon situations, we may not be able to grant you a surety bond.

But for most of our customers, surety bonds greatly reduce the cost of getting their business up and running. Call us today to get the bond you need to connect your utilities!