Please note that the following information is related to contractor’s license bonds. If you are a contractor seeking information on obtaining contract surety bid and performance bonds, please visit our contract bond page.
What is an Alaska contractor’s license bond?
In Alaska, depending on the county, town or municipality you work in as a contractor, there may be local codes and statues governing contractor’s license bond requirements. By posting a bond, contractors agree to pay all taxes and fees they owe to the state, as well as pay all suppliers and laborers. If a contractor performs negligent or improper work or fails to adhere to the letter of the law and the terms of the surety contract, the bond protects the state from resulting financial losses up to the full amount of the bond. A contractors bond is legally needed in order to do your job and ensures the safety and fair treatment of all parties whom are involved. The State of Alaska, or another local agency, will be named as the obligee on the bond. A contractor’s license bond must be obtained from an insurance company licensed to write surety bonds in Alaska.
Obtaining Contractor’s License Bonds for My Trade.
Contractor’s license bonds may be required in Alaska on a state, county, town or municipal level. Since Colonial is the insurance company, you can easily obtain a bond customized to your location’s requirements. Below are a few examples of state-wide requirements by trade that have recently been increased as of January 2015: Click here to see the Division of Corporations, Business and Professional Licensing.
- General contractors requires a $25,000 bond
- General contractors with residential endorsement requires a $20,000 bond
- General contractors for small projects (under 10k) require a $5,000 bond
- Specialty or mechanical contractors require a $10,000 bond.
Colonial issues these contractor’s license bonds, as well as all other types of contractor’s license bonds required by Alaska counties, municipalities and towns.
What is the process to obtain the bond?
Colonial offers one of the fastest ways to obtain a contractor’s license bond. We are the insurance company — which means no agent, no broker, and no middleman. There is no turnaround time to obtain your bond. The steps are simple- get a free quote online, fill out your information, answer our underwriting questions, and enter your payment method. Your bond will be available in a PDF or original form, and always accessible to you online. It’s that simple!
What Do Contractor’s License Bonds Cost?
Contractor’s license bonds are reasonably priced and easy to obtain — so that you can run your business. You may notice that with other insurance agents and middlemen companies, your premium rate will fluctuate and include additional hidden fees and costs. Not at Colonial. We offer a flat rate for each contractor’s license bond.
Does it matter where I get my bond?
It is important to understand how surety bonds work, and who is the insurance company issuing your bonds. It is easy to run your business when you deal direct with a quality insurance company licensed in New Jersey to write surety bonds. Colonial is an A (Excellent) rated insurance company by A.M. Best, that has been incorporated since 1930. We are Treasury listed, and licensed and admitted in all U.S. states and territories.