Minnesota Contractor License Bonds

February 20, 2021

Minnesota Contractor License Bonds

Contractor license bonds protect the public from financial harm resulting from violations of licensing law committed by the contractor and their employees.

The State of Minnesota requires contractors to obtain specific surety bonds correlating with their license type. We have compiled comprehensive guides on these bonds to assist insurance agents in obtaining Minnesota contractor license bonds for their customers. Below are all of the contractor licensing bonds required by the State of Minnesota:

  • Mechanical Contractor 

    • Average Cost: $100 per year
    • Bond Amount: $25,000
    • Who Needs It: All mechanical contractors operating in the State of Minnesota
  • Pipe Laying Contractor

    • Average Cost: $250 per year
    • Bond Amount: $25,000
    • Who Needs It: All individuals and business entities seeking to obtain a Pipe Laying Contractor registration in the State of Minnesota
  • Plumbing Contractor

    • Average Cost: $100 per year
    • Bond Amount: $25,000
    • Who Needs It: All individuals and business entities seeking to obtain a Plumbing Contractor License in the State of Minnesota
  • Residential Roofer

    • Average Cost: $100 per year
    • Bond Amount: $15,000
    • Who Needs It: All individuals and business entities seeking to obtain a Roofer License in the State of Minnesota
  • Satellite System Contractor

    • Average Cost: $100 per year
    • Bond Amount: $25,000
    • Who Needs It: All individuals and business entities seeking to obtain a Satellite System Contractor License in the State of Minnesota
  • Sign Contractor

    • Average Cost: $100 per year
    • Bond Amount: $8,000
    • Who Needs It: All sign contractors operating in the State of Minnesota
  • Technology System Contractor

    • Average Cost: $250 per year
    • Bond Amount: $25,000
    • Who Needs It: All individuals and business entities seeking to obtain a Technology System Contractor License in the State of Minnesota
  • Water Conditioning Contractor

    • Average Cost: $100 per year
    • Bond Amount: $3,000
    • Who Needs It: All individuals and business entities seeking to obtain a Water Conditioning Contractor License in the State of Minnesota
  • Utility Permit Bond

    • Average Cost: Between 0.75% to 5% of the bond amount per year based on the principal’s credit
    • Bond Amount: Determined by the DOT on a case by case basis
    • Who Needs It: All utility owners seeking to obtain a permit in the State of Minnesota
  • SSTS Business License Bond

    • Average Cost: $250 per year
    • Bond Amount: $25,000
    • Who Needs It: All business entities applying for a Subsurface Sewage Treatment System (SSTS) Business License in the State of Minnesota
  • Elevator Contractor

    • Average Cost: $250 per year
    • Bond Amount: $25,000
    • Who Needs It: All individuals and business entities seeking to obtain an Elevator Contractor License in the State of Minnesota
  • Electrical Contractor

    • Average Cost: $250 per year
    • Bond Amount: $25,000
    • Who Needs It: All individuals and business entities seeking to obtain an Electrical Contractor License in the State of Minnesota
  • High Pressure Piping

    • Average Cost: $150 per year
    • Bond Amount: $15,000
    • Who Needs It: All high pressure pipefitter (HPP) contractors in the State of Minnesota
  • Electric Installer

    • Average Cost: $100 per year
    • Bond Amount: $1,000
    • Who Needs It: All individuals and business entities seeking to obtain a Class A or Class B Electric Installer License in the State of Minnesota

How Can an Insurance Agent Obtain a Surety Bond for Their Customer?

BondExchange makes obtaining a surety bond easy. Simply login to your account and use our keyword search to find the “contractor” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.

At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

What Other Insurance Products Can Agents Offer Contractors in Minnesota?

Minnesota requires contractors to purchase liability insurance. Additionally, contractor with employees must also purchase workers’ compensation insurance Bonds are our only business at BondExchange, so we do not issue any form of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.

2021-02-19T17:45:01+00:00

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