Alaska Surety Bonds

Surety bonds in AK are as common in some of its top industries within oil and gas, fishing, construction and transportation. Along with those industries comes the needs for some of the most critical surety bonds in the US.

When required, AK surety bonds are tied to a performance obligation. The obligation can take various forms whether that be the completion of a construction contract, advance payment to a contractor, or payment guarantees to subcontractors. For construction projects, Alaska contractor bonds are often required by law to protect the interests of the public, consumers, and the company itself. Surety bonds provide assurance the project will be completed on time, of agreed specification, and under the conditions laid out in the contract.

Surety bonds in Alaska are often required to ensure professional obligations as well. There are numerous nonconstruction or payment-related performance obligations that revolve around licensing, permitting and probate.

At Simpli Surety, we are your hassle-free, cost-friendly direct surety bond AK provider. No drawn-out quote process, our instant issue platform has surety bonds delivered to your inbox in minutes!

What is a surety bond? How does a surety bond work?

It’s a type of contract that safeguards another party from financial loss. In the case of surety bonds, there are three parties:

• Principal (the person or business which needs to secure their liability)
• Surety (a third party, often an insurance company, who agrees to assume responsibility for the debt and acts as guarantor)
• Obligee (the person or business for whom the surety bond is being issued)

To issue a AK surety bond, both parties agree to the terms and conditions of a contract that carries an obligation to perform. These are usually written into an agreement that ensures compliance with state laws regarding surety bonds in Alaska. The details covered include:

1) Principal’s ability to perform a service and or repay a debt if necessary
2) Surety’s obligation should they become financially liable because the Principal fails to meet their obligations under the contract

The important thing about surety bonds is that all Principals and the approved Surety insurance company in California act as guarantors; however, the Surety will be responsible for payment due to defaults on contractual agreements under the bond. The bond allows the surety company to seek repayment from the Principal if a claim is valid.

What is a surety bond used for?

Whats a surety bond you ask? Well, it guarantees an agreement between three parties by securing the obligation in that it is used to:

– To secure performance on contracts;
– Guarantee compliance with contract specifications and standards;
– A warranty against defective products;
– Secure licensed professionals such as mortgage lenders

When do you need a surety bond?

Surety bonds are a form of performance security or financial guarantee issued by an insurance company. They are required for a variety of financial transactions, from government procurements to import and export. In the United States, bonds have been used since 1749 to guarantee that a party will fulfill its obligations under a contract or agreement.

Alaska bonds work as an integral part of any business’s success in Alaska – just ask anyone who has ever missed a deadline! Typically a transaction, contract, or professional licensing requirement will indicate if a performance bond, payment bond, contract bond, license and permit bonds, or another type of bond is needed.

What are the most popular surety bonds in AK?

Alaska has many industries that require contract surety bonds, license bonds or permit bonds. The most common type of surety bond Alaska is commercial surety bonds. Commercial business contracts require these kinds of surety bonds to ensure that the client receives their end of a product or service as expected. In addition, some professions such as realtors need this kind of bond before they can practice within Alaska. Fisheries and public notaries are required to obtain licensing bonds and tax bonds to operate and practice.

What are contract bonds?

A large category of Alaska bond is called contractor bonds, or bonds specific to the construction industry. Contractor surety bonds more commonly are performance bonds, bid bonds, and payment bonds. Construction bonds account for approximately 70% of all bonds written in the USA.

Required by residential and commercial contractors both big and small, general and across specialty trades. Alaska surety bonding requirements vary by municipality and ensures protection of the public and consumers via performance bonds for public projects and various trade bonds.

Can I get a surety bond online?

Yes. At Simpli Surety, we have 1000s of instant issue surety bonds available to our clients on-demand at low surety bond rates. Our surety bond experts are here to help.

If you are looking for surety bond cost, the good news is that it’s not as expensive as most people think. Across the industry, Surety bond costs can range depending on the type and terms of the bond. The fee is calculated, also called the surety bond premium, as a percent of the total coverage needed or bond amount, usually ranging anywhere from 1% to 3%. For instance, straightforward license and permit bonds tend to fall on the lower end of the spectrum even below 1%. While a more complex performance bond for a large construction project that carries a higher risk and bond amount, therefore, the surety bond cost can range higher between 1.5% to 2.5% on average. 

Surety bond costs could be higher or lower depending on your surety company, the type of work you are doing, and other factors. If you need help determining how much a surety bond will cost for your specific situation, use our search to find the instant issue bonds you need, and often the surety bond cost and bond amount are listed on the application.

At Simpli Surety, we have 1000s of instant issue surety bonds available to our clients on-demand at a low surety bond rate. The application and approval process is completed quickly, so you can get back to your business. 

On the rare occasion, your bond application requires additional underwriting, our surety bond agents with over 40 years of experience will step in to help.

The best surety company in Alaska is us! SimpiSurety has all of these bonds and more AK surety bonds available instantly. Search for your bond and apply online in minutes. 

Although, whomever you choose, be sure they are a licensed surety bond agency in Alaska that can help you get bonded for the right bond amount. All surety companies are not the same, so choose wisely when choosing your Alaska bonding agent.

In Alaska many industries and professions that require licensing or the proprietor to register their business with a state commission or regulatory body require a surety bond, including:

• Alaska Notary $2,500 with $5,000 EO – pledgers a notary will perform his or her duties required by the state in accordance with ethical standards and in compliance with state laws. The bond ensures client protection and credibility to the notary. Coverage $2,500 + $5,000 E&O. Buy Now
• Alaska General Contractor License – New home builders, commercial contractors, and residential renovation contractors are all examples of general contractors. There is no requirement for a residential general contractor who does commercial work or a home renovation project valued less than 25% of the structure being remodeled to obtain an endorsement. Bonded coverage $25,000. Buy Now
• Alaska Residential Contractor Bond –  required of residential contractors to operate their business and as a prerequisite of working with customers. Bonded coverage $20,000. Buy Now
• Alaska Notary $2,500 without EO – pledgers a notary will perform his or her duties required by the state in accordance with ethical standards and in compliance with state laws. The bond ensures client protection and credibility to the notary. Bonded coverage $2,500. Buy Now
• Alaska Fisheries Tax Bond – The Alaska Fishery Business Tax is a tax on those who process or export fisheries’ resources from the state of Alaska. The Alaskan fisheries business tax is collected mostly by licensed processors and persons who export fish from Alaska ensuring that the taxes are paid to the state. A surety bond protects the obligee in this case, which is the state of Alaska, from financial losses that may arise as a result of unethical business practices or a breach of any state laws and regulations. Buy Now
• Alaska Fish Buyer and Processor Bond – Required by the Alaska Department of Revenue the bond is in place to help ensure that buyers and processors pay wages and fees owing for the service of transportation of raw fish and unemployment insurance contributions. Buy Now
• Alaska Mechanical Contractor Bond – required of mechanical contractors to operate their business and as a prerequisite of working with customers. Bonded coverage $10,000. Buy Now
• Alaska Specialty Contractor Bond – required of speciality contractors to operate their business and as a prerequisite of working with customers. Bonded coverage $10,000. Buy Now

• Freight Broker Bonds – often referred to as BMC-84 bonds, are a Federal as opposed to state mandate made by the Federal Motor Carrier Safety Commission to conduct business as transportation brokers. Coverage to $75,000. Buy Now
• Durable Medical Equipment Provider Bonds – often referred to as DMEPOS bonds are required of suppliers of prosthetics, orthotics, and durable medical equipment. A federal mandate per the Centers for Medicare and Medicaid Services to mitigate Medicate billing fraud. Min bond requirement of $50,000 per National Provider Identifier needing Medicate billing authorization. Buy Now
• Performance Bonds – this bond covers general performance obligations related to a contract but most often ensures the satisfactory completion of performance by a contractor. The bond penalty is tied to contract value and can be mandated at federal, state, or municipal levels. Buy Now
• Bid Bonds – a construction bond that protects the developer or project owner of a construction project during the bidding process. It guarantees them that if the bidder can or will not honor the terms of the bid, the owner will be compensated. Bid bonds are commonly required on projects that also involve performance bids and payment bonds. Buy Now
• Payment Bonds – these surety bonds are often paired with performance bonds ensuring prompt payment to suppliers and subcontractors on the project. This signals to the owner, supplier, and sub that the contractor will be compliant in working with them to completion and paying on time. Buy Now