Termite Eradication and Control Work ($2,500) Bond - Statewide in Alabama

Brief Summary

Small penalty, narrow purpose. The Department's own form is the Bond to Perform Subterranean Termite Eradication and Control Work at $2,500, running to the State of Alabama, and the surety's total exposure across all losses is capped at that penal sum. It is not your insurance program, and Alabama says so by requiring insurance separately at $150,000 with $100,000 errors and omissions on top for wood destroying organisms work. Even those are licensing thresholds. Price the real program at PestControlLiability.com, which quotes pest control general liability, workers compensation, pollution coverage for drift and contamination, property and equipment, drone operations, termite and bedbug, lawncare and remediation.

Alabama requires a bond from professional services permit holders doing subterranean termite eradication and control work, on the Department of Agriculture and Industries form titled Bond to Perform Subterranean Termite Eradication and Control Work. The penal sum is Two Thousand Five Hundred Dollars, the obligee is the State of Alabama, and the bond is conditioned that the principal will well and truly conduct the work, business or profession while licensed and comply with the applicable laws and regulations, under Chapter 28 of Title 2 of the Code of Alabama of 1975. The aggregate liability of the surety for all losses may not exceed the penal sum. The amount is flat, with no tiers by revenue, crew size or number of offices.

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How to Apply for a Termite Eradication and Control Work ($2,500) Bond:

• Confirm this is your bond. The Department's form is specific to subterranean termite eradication and control work, which is the wood destroying organisms side of a structural permit.
• Use the Department's own Bond to Perform Subterranean Termite Eradication and Control Work form rather than a generic surety form.
• Legal business name exactly as it will appear on the professional services permit application.
• Owner or officer information for the underwriting review.
• Complete the bond application and review the quoted premium.
• Get the executed $2,500 bond signed by the principal, by a resident Alabama insurance agent, and by the surety, with the Commissioner's signature line completed on filing.
• Place the separate insurance required by rule 80-10-9-.28: not less than $150,000, plus errors and omissions of not less than $100,000 on the Official Alabama Wood Infestation Inspection Report if you are permitted in Control of Wood Destroying Organisms. Price it against your real exposure at PestControlLiability.com.
• File both with the permit application and the fee, $175 for a main office, $75 for a branch, or $50 for a sub office plus $100 per certified work category.
• Have the Commercial Applicators License Application taken, passed and submitted.
• Renew before September 30. The permit year runs October 1 to September 30.
• If the surety ever gives its fifteen day cancellation notice, replace the bond inside that window, since failure to maintain the bond and insurance is a ground for revocation.

Detailed Information About the Alabama Termite Eradication and Control Work ($2,500) Bond:

One amount, and one specific kind of work

$2,500, flat. It does not scale with revenue, treated square footage, number of technicians or how many offices you run.

What it is tied to is the work. The Department's form is titled Bond to Perform Subterranean Termite Eradication and Control Work, so this is the wood destroying organisms side of a structural professional services permit, not general household pest control or fumigation on its own.

The obligee is the State of Alabama. The condition is that the principal will well and truly conduct said work, business or profession while licensed and comply with the applicable laws and regulations, under Chapter 28 of Title 2 of the Code of Alabama of 1975. The aggregate liability of the surety for all losses shall in no event exceed the penal sum, so $2,500 is the ceiling across every claim, not per job.

The signature block catches people

The form is not something a surety can simply mail you. It requires the principal's signature, the signature of a resident Alabama insurance agent, the surety's signature, and the Commissioner of Agriculture and Industries, with dates. If your surety is out of state and has no resident Alabama agent on the paper, expect it back.

The surety may cancel by written notice to the state agency on not less than fifteen days notice. That is a short window to replace it.

The insurance is the bigger requirement, and it is separate

Ala. Admin. Code 80-10-9-.28 requires liability insurance from applicants permitted in Control of Wood Destroying Organisms, Industrial Institutional and Household Pest Control, and Fumigation Pest Control. The minimum coverage shall not be less than $150,000.

Wood destroying organisms work carries more. Those permit holders must have insurance including errors and omissions on the Official Alabama Wood Infestation Inspection Report, with a minimum for errors and omissions of not less than $100,000.

Rule 80-10-9-.23(10) makes failure or refusal to maintain a bond and insurance as required by the chapter a ground for revocation or refusal to issue a permit. Both instruments, not one.

Why none of it is protection for your company

A $2,500 bond pays a claimant and then comes back to you for reimbursement, and its total exposure is capped at $2,500 anyway. A $150,000 general liability limit with $100,000 of errors and omissions is a licensing floor, not a number chosen around a real Alabama termite file. A missed wood infestation report on a house that just closed, structural repair after concealed damage, a fumigation incident, drift onto a neighbor, a crew injury, trucks and equipment, drone work and lawncare damage all sit above or outside it.

Build the actual program separately at PestControlLiability.com, which covers pest control and pesticide general liability, workers compensation, pollution for drift and contamination, property and equipment, drone operations, termite and bedbug, lawncare and remediation.

The report obligation behind the errors and omissions requirement

Under Rule 80-10-9-.18, the Official Alabama Wood Infestation Inspection Report must be completed by a qualified, certified inspector, carries a ninety day guarantee for treatment if infestation is discovered, and the records are kept for one year following the inspection. That is the exposure the errors and omissions coverage exists for, and it is why Alabama singles out wood destroying organisms permit holders.

The permit year is not the calendar year

Horticulture and structural licenses run from October 1 and expire on September 30 of each year, renewed annually. That October date is easy to miss if you are used to a December 31 cycle in another state.

Fees on the structural side are $175 annually for a main office, $75 annually for a branch office, and $50 for a sub office plus $100 per certified work category. Horticulture professional services licenses are $175 annually. Ala. Code 2-28-4 caps the permit fee set by the Board of Agriculture and Industries at $200.

The credential does not replace the bond

Applicants must have taken, passed and submitted their Commercial Applicators License Application before the professional services permit issues. That is a competency and credentialing step. It does nothing about the bond or the insurance, and posting the bond does nothing about the exam.

Free and worth doing

While the October renewal is in front of you, list the company on BestPestControlIn.com. It is free for any licensed pest control company, consumers search it by ZIP code and state, the listing carries a backlink that helps your own site rank, it sends referrals, and we write blog posts on companies in the directory.

Eligibility and Requirements for a Alabama Termite Eradication and Control Work ($2,500) Bond:

• The Department's prescribed Bond to Perform Subterranean Termite Eradication and Control Work.
• Penal sum of $2,500, with the surety's aggregate liability for all losses capped at that amount.
• State of Alabama as obligee.
• Conditioned that the principal will well and truly conduct the work, business or profession while licensed and comply with the applicable laws and regulations under Chapter 28 of Title 2.
• Signatures of the principal, a resident Alabama insurance agent, the surety, and the Commissioner of Agriculture and Industries.
• Not less than fifteen days written notice to the state agency before the surety cancels.
• Separate liability insurance of not less than $150,000, and errors and omissions of not less than $100,000 for wood destroying organisms permit holders.
• Business name on the bond matching the permit application exactly.
• Owner credit review. At $2,500 most sureties charge a minimum premium rather than a rate.

Alabama Termite Eradication and Control Work ($2,500) Bond FAQs:

Official and Additional Resources for the Alabama Termite Eradication and Control Work ($2,500) Bond: