The state of Alaska requires contract workers and certain businesses to post a surety bond as part of the licensing process.
For example, motor vehicle dealers must post a bond of $50,000—unless they only sell motorcycles, in which case the bond is $25,000. AK contractor bonds range from $5,000 for handyman services up to $25,000 for general contractors.
To make sure you are in compliance with Alaska bonding regulations, talk to one of our experts. NNA Surety Bonds has been providing affordable policies to companies and individuals across the United States since 1957. We carry some of the state’s most popular bonds, including contractor bonds, collection agency bonds and motor vehicle dealer bonds.
Collection agencies may do business in Alaska by posting a $5,000 surety bond to the AK Department of Commerce, Community and Economic Development (DCCED) along with their license application. If a debt collection agency mishandles personal information or fails to report and pay collections to clients, a claim can be filed against the bond to compensate harmed parties for financial loss. Your cost for the Alaska collection agency bond is just $100 annually.
Contractors working in Alaska must post a surety bond to the licensing division of the Department of Commerce, Community and Economic Development. The amount of the bond varies depending on what kind of contracting business you operate.
|Type of Contractor||Bond Amount|
|General Contractor (residential only)||$20,000|
|Handyman (projects under $10,000)||$5,000|
Alaska's Commerce Department lists dozens of trades under “specialty contractor," including asbestos abatement contractors, paving contractors, electrical contractors, and roofing contractors, to name just a few.
Whichever bond is needed for your license, your cost will be only a small percentage of the coverage amount listed above. Contractor bond premiums vary depending on your credit rating and business finances.
As a new or used car dealer, you are required by the Alaska Department of Motor Vehicles to post a $50,000 surety bond. AK motorcycle-only dealers need to post a $25,000 bond. Unlike many other states, Alaska does not require boat dealers to be bonded.
AK auto dealer bonds differ from most states in that the bond has a term of two years. This means that the premium amount of $438 is paid every two years for a $25,000 bond. $50,000 motor vehicle bonds with a two-year term are available for $875 through NNA Surety Bonds.
|Bond Name||Coverage Amount||Cost
|Collection Agency Bond||$5,000||$100||Alaska DCCED - Division of Corporations, Business and Professional Licensing|
|Contractor License Bond||$5,000–$25,000||Varies*||Alaska DCCED - Division of Corporations, Business and Professional Licensing|
|Motor Vehicle Dealer Bond||$25,000/$50,000||$438/$875 (two years)||Alaska Division of Motor Vehicles|
* Cost can vary depending on the bond amount required and your credit rating
Our knowledge of Alaska bond requirements allows us to provide accurate quotes quickly. For guidance through the process of selecting surety bonds for your business, talk to one of our experts today.