You may find that you need a surety bond at some point. People get bonded for a wide variety of reasons, and sureties vary according to the purposes they serve. Before you apply to be bonded, you may want to explore some basic information about Alaska surety bonds.
What Is an Alaska Surety Bond?
Surety bonds are completely different from investment bonds. A surety bond is a kind of insurance. In the most general sense, Alaska surety bonds are contracts that offer insurance against liability. The liability might pertain to a misdeed or financial loss.
Involved People/Entities
When a person or business obtains a bond, three people or entities are involved. The surety is the company that provides the bond. The principal purchases the bond, and the obligee requires the principal to make this purchase.
Surety Bond Types in Alaska
You might purchase a bond for several reasons. If you are a contractor, you could be required to obtain a contract bond. Businesses in some industries are required to get license and permit bonds. If you are a defendant in a criminal court case, you might need to be bonded with a judicial bond. Probate bonds (known as fiduciary bonds) protect parties who may be vulnerable to misconduct on the part of court-appointed persons. Fidelity bonds cover employers in cases of employee misconduct. Federal bonds serve as fidelity bonds for individuals who may have difficulty finding employment.
Industries that Require Bonds
People and businesses in many different industries may be required to get bonded. Business-related bonds are some of the most commonly requested surety bonds in Alaska. These are a few of the industries with bond requirements:
- Auto dealers - before they can receive their motor vehicle dealer licenses, auto dealerships typically must be bonded. Dealer bonds help to protect consumers from fraudulent activity, as well as other potential misdeeds that they may be subjected to by dealers and their employees.
- Collection agencies - collection agency bonds typically involve relatively low bonding amounts. Thus, these are generally some of the most affordable bonds available. Collection agency bond requirements and costs vary according to state, so you should speak with an expert about the relevant details if you need to purchase such a bond in Alaska.
- Construction companies - essentially, construction bonds are the same thing as contract bonds. They protect project developers from suffering losses due to construction companies not following through on their contracts. Before the public construction projects are initiated, bonds are typically required.
- Travel agencies - because travel agencies often handle large sums of money for their clients, several states require them to be bonded. If you run a travel agency in Alaska, you should consult a surety company about whether you need to get surety for your business.
- Health clubs - since most health clubs offer packages that involve pre-payment of fees, customers would be financially harmed if the club shut down unexpectedly. Getting bonded helps to cover the liability in these cases. Check with our team to find out whether your health club must obtain an Alaska surety bond.
- Auctioneers - auction houses frequently deal with expensive items, so it makes sense that they would need to be bonded to do business. This can be beneficial to both sellers and buyers. Surety solutions for auctioneers also protect consumers from the potential misrepresentation of items being sold.
- Durable medical equipment providers - to help prevent Medicare fraud, bond requirements are now imposed on many suppliers of medical equipment. Such suppliers must obtain a surety for a specified amount before they are allowed to bill Medicare. These bonds may also be referred to as Medicare bonds.
- Medical marijuana suppliers - since medical marijuana laws and the state of prohibition are changing so rapidly with every voting season, regulations may subject to change more frequently than in other industries. In some states, bonds are required before dispensaries can be licensed.
- Home inspectors - Home inspector bonds are very important. This type of bond helps to insure clients against wrongdoing or negligence by the home inspectors.
- Solicitors for charitable organizations - this kind of surety offers protection against theft or other wrongdoing on the part of professional solicitors. The cost of such bonds will vary depending on the credit reports of applicants.
You may be required to get an Alaska surety bond, and you might even need different surety for different reasons. Whether you must obtain a bond to do business, perform court-appointed duties, or to secure your release from jail, be sure to use a reputable surety company.
Our team provides affordable surety and fidelity bond insurance. Alaska is a beautiful state characterized by the collectively strong, independent mindset of its residents. Every surety we provide is prepared on a specific Alaska bond form, as prescribed by the entity requiring the bonding (known as the obligee).
Apply for your surety now by completing our online application. Quotes are always free.
Below is a list of commonly requested surety types in Alaska.
- Actors
- Adjuster
- Agent
- Auction
- Broker
- Business
- Car Dealer
- Car Title
- Construction
- Contractor
- Court
- Dealer
- DMEPOS
- ERISA
- Federal
- Fidelity
- Installation Contract
- Insurance Agent
- Insurance Broker
- Janitor Bond
- Mortgage Lender
- License
- Mechanics Lien
- Medicare
- Mortgage Broker
- Notary Public
- Private Investigator
- Process Server
- SAG Bond
- Sales Tax
- Supply Contract
- Title
- Utility Deposit
- Vehicle Dealer