Alaska Surety Bonds Overview
The state of Alaska frequently requires businesses and individuals who want to obtain a business or professional license to obtain a surety bond. The bond functions as a type of guarantee that the bonded party will comply with state laws.
Contractors in the state must also obtain a bond guarantee for a variety of purposes. For example, bonds for contractors may guarantee their performance on a project.
What is the purpose of the bond?
Bonds function like security for the state and the public. They are backed by a surety that extends financial compensation if the bonded party violates the bond agreement. The parties to the bond agreement are:
- The bond obligee - the party that requests the bond
- The bond principal - the party that obtains a bond
- The bond company - the party which issues and backs the bond
As any agreement, bonds also have conditions under which they are considered violated. If a contractor, for example, does not comply with the conditions of their construction contract, this may lead to a violation of their surety bond. The bond obligee can then file a claim against the bond to request compensation for damages or losses.
When a claim is filed against a bond, the surety will investigate the issue and may extend compensation to claimants.
If you are new to bonds, and want to know more about their purpose, see our detailed 'What is a surety bond' guide!
To apply for your bond, see the full list of surety bonds in the table below, and follow the application link. To find out more about the types of surety bonds in Alaska we offer, how much they cost, and how you can get bonded, scroll down to review the sections below the table.
Find the Bond You Need
The table below contains a list of only the most popular surety bonds. If you can't find yours, fill out our online application and select "Not in the list".
|Freight Broker Bond (BMC-84)||FMCSA||N/A||Apply Now|
|Contractor License Performance & Payment (State) Bond||Dept of Commerce, Community and Economic Developme||Construction Contractor Bond||Apply Now|
|Collection Agency Bond||Alaska Dept. of Commerce||Collection Agency||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Dept of Commerce, Community and Economic Developme||Mortgage Broker Regulation Act||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Dept of Commerce, Community and Economic Developme||Mortgage Licensee||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||Division of Motor Vehicles||Motor Vehicle Dealer's/Buyer's Agent||Apply Now|
|Auto & Mobile Home Dealers (Used Only, No New) Bond||Division of Motor Vehicles||Motor Vehicle Dealer's/Buyer's Agent||Apply Now|
|Professional Licenses (All Other) Bond||AK Department of Commerce||Hearing Aid Dealer Bond||Apply Now|
|Professional Licenses (All Other) Bond||Division of Corporations, Business & Professional||Concert Promoter||Apply Now|
|Schools (All) Bond||ACPE/Alaska commission on postsecondary education||Educational Institution Bond||Apply Now|
|Sales, Use & Consumer Tax Bond||Municipality Of Anchorage||Tax Liability Bond||Apply Now|
|Sales, Use & Consumer Tax Bond||Municipality Of Anchorage||Room Tax Liability Bond||Apply Now|
|Money Transmitter Bond||STATE OF ALASKA||Uniform Money Services Act Bond||Apply Now|
Types of Surety Bonds in Alaska
The following are the three most commonly issued types of bonds in the state:
- License and permit bonds – the type of bonds that businesses and professionals need when applying for a business license
- Construction bonds - required by licensed and bonded contractors in Alaska who want to bid or work on a construction project
- Court bonds - required by anyone who has been requested to obtain such a bond by a court in the state
For more details about each type of bond, have a look at the sections below.
License & Permit Bonds
License and permit bonds are required by every state in the country. From state to state, requirements vary which businesses need to obtain a bond when getting their professional license. Some businesses, such as auto dealers and freight brokers, are almost always required to get bonded, while others only need to get bonded in certain states.
Alaska requires many of its businesses to obtain a particular bond when getting licensed. The purpose of license and permit bonds is to serve as a financial guarantee that a business is licensed, and adheres to state rules and regulations. These bonds protect the Alaskan public and state against businesses who don’t comply with regulations.
Bonds commonly issued in Alaska are the auto dealer bond, the mortgage broker bond, as well as freight broker bonds. Of course, there are many other bonds required in the state, apart from these.
To find out more about the cost of your license bond, and how to make a tentative calculation, have a look at the section on bond costs further down.
Contract bonds are the second major type of surety bond required in the state. These bonds are issued to contractors for a number of construction-related purposes, such as participating in a bid or performing work on a federal, state, or private construction project.
These bonds are a protection to project owners, such as the state and the public or private owners, guaranteeing that contractors are licensed, bonded, and will comply with state regulations and the conditions of their construction contract.
The third major type of bonds that you may be required to get are court bonds. These bonds are typically required by a variety of courts in the state in situations when an individual wishes to appeal a court judgement, or is appointed by a court as someone’s fiduciary or guardian.
Call our surety professionals at 866.450.3412 if you have any questions about the bonding requirements in Alaska.
How Much Does it Cost to Get Bonded in Alaska?
Sureties determine the cost of a bond on the basis of its total amount. The total amount of the bond is simply the full amount of compensation that a bond may cover, if a claim is made. Your premium, however, is only a percentage of this total amount.
How is my premium determined?
How high or how low your premium is depends on a number of financial and business factors which sureties take into account. The most important among these factors is an applicant’s personal credit score. But sureties further consider factors such as:
- Personal and business financial statements
- An applicant’s asset profile and liquidity
- Applicant work experience and record
- Other factors
Those applicants who have a high or perfect credit score are usually offered a rate in the range of 1%-4% of the total bond amount. The exact amount is determined on a case-by-case basis.
Applicants with a lower credit score, or those without a credit score, can also get bonded but at somewhat higher rates. Usually, such applicants are offered rates in the range of 5%-15% of the total amount. And by improving their credit and other financial, such applicants can see their rates improving significantly over time. Learn more about getting bonded with low credit at our Bad Credit Surety Bond Program page.
To get an initial estimate of the cost of your bond, try our surety bond cost calculator below.
To learn more about how bond cost is determined, visit our surety bond cost page.
Surety Bond Cost Calculator
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Getting Bonded in Alaska
To get started with your bond application, follow the instructions below, based on the type of bond you require.
License bond application
To apply for a license bond, simply use online application tool to fill in a few details about yourself and the bond you need, and submit your application to us. Bonds are typically approved very fast and we will soon contact you to provide you with your free quote and further details.
Contract bond application
If you require a contract bond, simply complete the correct online application form depending on the type of bond you need. Once you have completed it, we will get in touch with you as soon as we process it.
Call our bond experts anytime at 866.450.3412 to consult with them about the bond you need or if you need help with your application.