Alabama Health Studio Surety Bond

How much does an Alabama health studio bond cost?

The Alabama Office of the Attorney General Consumer Protection Division requires all studios selling health studio services in the state to post a $50,000 surety bond.

Alabama health studio bonds are subject to underwriting consideration. A surety underwriter must examine an applicant’s financials and credit history to determine whether a bond can be issued to the applicant and at what price.

You can view more information about underwriting on the SuretyBonds.com Definitive Underwriting Guide.

Why is a health studio bond required?

Alabama’s health studio surety bond requirement can be found in Alabama Health Studios Code Title 8 Chapter 23-3 (d), stating that a $50,000 bond must be filed so the business can provide services in the state.

A health studio bond is required to ensure that the principal (health studio and designated studio agent) complies with all applicable regulations and legislation, including the Alabama Health Studios Code. If the principal practices negligence and causes any harm to any consumers, it could be held financially responsible for any damages through the bond, up to its full amount.

How to become a registered health studio

Each person who sells health studio services must register. Applicants must use the online registration application to apply.

However, each person is not required to post a surety bond. Only the health studio that sells contracts for health services must post a $50,000 surety bond.

Once your health studio is registered with the Alabama Office of the Attorney General, you can utilize the Business Lookup to ensure your registration is public.

For more information on health club licensing in Alabama, individuals can visit the Attorney General’s consumer licensing page.