What is an Alaska contractor license bond?
The state of Alaska requires most contractor license types to post a contractor license bond. These include:
- All contractors who want to work on projects with a value above $10,000
- General contractors
- General contractors with residential endorsement
- Specialty contractors
- Mechanical contractors
- Home inspectors
Bonding ensures that the public will receive compensation for damages if the contractor fails to comply with licensing laws. The Department of Commerce, Community and Economic Development handles the regulation of contractors in Alaska.
For full details on contractor license bonds, check out our complete guide.
Get Your Alaska Contractor License Bond:
How much does an Alaska contractor license bond cost?
The cost of your bond depends on the bond amount required for your license type.
Bond Amount by Type
- $5,000: Handymen working on projects with an aggregate contract price of $10,000 or less
- $10,000: Home inspectors and mechanical/specialty contractors
- $20,000: Residential general contractors
- $25,000: General contractors (commercial)
Average Cost of Premium
The bondholder will pay a premium, which is often a small percentage of the total amount. Your premium rate depends primarily on your personal credit score, along with the condition of your personal and business finances.
The premium cost (1% – 7.5% of the bond amount per year, on average) for each bond amount listed above:
- $5000 bond starts at $100
- $10,000 bond starts at $100
- $20,000 bond starts at $200
- $25,000 bond starts at $250
Frequently Asked Questions
When considering what percentage of the bond amount you’ll pay, the most crucial factor is your personal credit score. Business experience and financial history, assets and liquidity, and general state requirements also factor into the final premium amount.
Once you’ve obtained your license, it will expire on September 30th of every even-numbered year (2022, 2024, and so on). You must renew your license before the expiration date.
Get Your Contractor License Bond in Alaska
ZipBonds is the fastest and most secure option for getting bonded. Our all-digital platform is intuitive and straightforward. Apply for your contractor license bond online, email email@example.com, or call 888.435.4191 to speak with an agent directly.
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.