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Your Guide to Surety Bonds in Alaska

People across Alaska rely on surety bonds to help establish trust and enforce accountability. Alaska surety bond requirements factor into a large lumber of legal, contractual, and regulatory arrangements, and they apply to countless people throughout the state. Consider this your complete guide to surety bonds in Alaska.

How Does a Surety Bond in Alaska Work?

There are dozens of different types of surety bonds, which we will cover in the next section, but they all work according to the same process:

• The obligee creates surety bond requirements.
• The principal obtains a surety bond that meets those requirements.
• The principal does something illegal or unethical that violates the surety bond agreement.
• The obligee files a claim against the surety bond seeking damages.
• The surety agency that backs the bond investigates the claim.
• The surety settles all valid claims from the obligee in full.
• The principal pays back the surety the settlement amount plus interest and fees.

In all cases, surety bonds hold one party financially responsible for damages they cause to another party.

What Are the Different Types of Surety Bonds in Alaska?

Almost all types fall into one of three categories:

• Commercial Bonds – Surety bonds that someone needs to start a business, obtain a license, or proceed with a court case.
• Contract Bonds – Surety bonds that someone needs to meet contractual obligations, often as part of construction contracts.
• Fidelity Bonds – Surety bonds that someone gets to protect their business and customers from the actions of employees.

Who Needs a Surety Bond in Alaska?

Contractors, business owners, and ordinary individuals may all need a surety bond at some point. In most cases, it's clear when surety bond requirements exist because a formal arrangement can't move forward until they've been met. For example, when a construction contract includes a surety bond requirement, the contract can't be finalized – and work can't begin – until the contractor being hired can prove they have a surety bond.

For that reason, it's important to meet those requirements ASAP. Contact Viking Bond Service for help identifying and understanding the specific surety bond requirements that apply to you.

How to Get a Surety Bond in Alaska

It's easier than you think. Follow these steps:

1. Understand the Details – Never apply for a surety bond until you understand what the bond agreement entails.
2. Complete an Application – A standard surety bond application asks for information about your business interests, finances, personal background.
3. Submit to a Credit Check – Underwriters at the surety will use your credit score and history - along with your application information - to calculate the bond cost.
4. Check Other Boxes – Underwriters may ask for additional documentation like financial statements or proof of business history.
5. Pay Bond Premium – The surety agency will quote a price for the bond. After paying, you receive a document proving you've met the surety bond requirement.

What Does an Alaska Surety Bond Cost?

Bond costs are individual to each bond seeker and take into account the following criteria:

• The size of the bond – The maximum amount the surety agrees to pay to settle claims.
• The applicant's credit score and financial history – This helps indicate how likely someone is to cause claims and repay the surety.

In most cases, Alaska surety bond costs are a small percentage of the bond size. People with bad credit will pay more, but they won't necessarily be denied for a bond. A special program from Viking Bond Service helps connect more people with bonds even if they have a credit score below 700 or something like a bankruptcy in their past.

Viking Bond Service – Your Partner for Surety Bonds in Alaska

As a nationwide surety agency with years of experience helping Alaskans obtain the surety bonds they need, there's no better partner than Viking Bond Service. Take advantage of our quick and easy online application whenever you feel like getting the process started. We return quotes in under 24 hours in most cases. You can also rely on our team for good information about surety bonds in Alaska. Call us at 1-888-278-7389 or contact us with your questions.