Alaska Surety Bonds

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Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your Alaska surety bond needs.

Required Surety Bonds in Alaska

Typical Alaska bonds include (click on any for more info):

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Required Surety Bonds in Alaska

All Alaska surety bonds fall into one of these three broad categories: construction and contractor bonds, license and permit bonds, and court bonds. Each of these categories includes a number of different types of surety bonds.

Alaska Construction & Contractor Bonds

State and local governments alike require certain surety bonds from contractors in conjunction with public works projects valued over a certain dollar amount. The most common of these are bid bonds, performance bonds, and payment bonds.
Bonds in this category provide financial protection for subcontractors, workers, and suppliers. They also protect the public funds used to pay for a project.

Alaska License & Permit Bonds

State and local governments also require people applying for a license or permit to operate certain types of businesses to purchase a license or permit bond.
Alaska’s Division of Motor Vehicles, for example, licenses auto dealers throughout the state, but some local governments have their own licensing requirements for auto dealers. Similarly, there is statewide licensing of construction contractors by the Alaska Department of Commerce, Community, and Economic Development and may also be required to obtain a local license or permit.
The purpose of a license bond is to guarantee that the bonded individual will conduct business in a lawful and ethical manner or compensate anyone with a valid claim against the bond.

Alaska Court Bonds

Any court in Alaska can require a court bond, of which there are two main types:

  • Appeal bonds—required in certain cases involving the appeal of a court decision, especially when contested property or financial damages are at stake
  • Probate bonds—required from people managing the assets of another, such as an executor of an estate, guardian of a minor, or custodian of an adult.

Speak with a Surety Bond Professionals agent today to discuss your bonding needs.

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Whatever Alaska surety bond you might need, our experienced surety bond experts will get it for you at a competitive rate.

Frequently Asked Questions

There are three parties to every surety bond agreement, which is a legally binding contract:

  • The “obligee” is the state or local agency requiring the surety bond.
  • The “principal” is the party required to purchase the bond.
  • The “surety” is the company underwriting and issuing the bond.
  • The obligee sets the required amount of the bond, which is the maximum amount that will be paid out on a claim. The obligee also spells out the conduct required of the principal in order to avoid claims against the surety bond.

Any party who suffers a financial loss because the principal has violated the terms of the bond has the right to file a claim against the bond. The principal is solely responsible for paying all valid claims.

However, the surety will often pay a claim and wait to be reimbursed by the principal. This ensures timely settlement of the claim and gives the principal some time to gather the necessary funds.

What the principal in a bond agreement actually pays for a surety bond is a small percentage of the required bond amount established by the obligee. That percentage, known as the premium rate, is determined by the surety company based on the applicant’s credit score and other indicators of the likelihood of claims being filed against the bond. Those with good credit can expect a rate of 1-3%. Those with poorer credit may pay a higher premium.
No claim against a bond will be paid until the surety company has investigated and determined that it is valid. After making payment to a claimant, the surety company will demand reimbursement from the principal.