What a contractor license bond is
Some states, and many cities and counties, make contractors post a bond to get or renew a license. It protects customers, workers and the public if the contractor breaks the licensing laws, for example by abandoning a job or not paying workers. The contractor repays the surety for any claim it pays.
In Alaska
Alaska construction contractors must provide a surety bond to the state under AS 08.18.071 to be licensed. The amount depends on the license type.
- A cash deposit or other negotiable security the commissioner accepts may be filed instead of a bond.
- Proof of insurance is also required separately (AS 08.18.101).
You need this bond if you're
- A contractor applying for a new license
- A contractor renewing or reactivating a license
- A business changing its entity type or qualifier
- A contractor starting work in a city or county that requires its own bond
What the surety looks at
Basic business and owner details. Most license bonds need a credit check but no financial statements.