Minnesota SSTS Business License Bond: A Comprehensive Guide

This guide provides information for insurance agents to help contractors on Minnesota Subsurface Sewage Treatment Systems (SSTS) Business License Bonds

At a Glance:

• Lowest Cost: $250 per year or $25 per month
• 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
• Purpose: To ensure the public will receive compensation for any damages should the contractor fail to comply with licensing law
• Who Regulates Septic System Contractors in Minnesota: The Minnesota Pollution Control Agency (MPCA)

Background

Minnesota Administrative Rule 7080.1050 requires all septic system contractors to obtain an SSTS Business License with the MPCA prior to conducting business operations. The Minnesota legislature enacted licensing laws and regulations to ensure that contractors engage in ethical business practices. In order to provide financial security for the enforcement of the licensing law, septic system contractors in Minnesota must purchase and maintain a $25,000 SSTS Business License Surety Bond to be eligible for licensure.

What is the Purpose of the Minnesota SSTS Business License Bond?

Minnesota requires septic tank contractors to purchase the SSTS Business License Bond as part of the application process to obtain an SSTS Business License. The bond ensures that the public will receive compensation for financial harm if the contractor fails to comply with the terms of the licensing regulations. In short, the bond is a type of insurance that protects the public if the contractor breaks licensing laws.

How Can an Insurance Agent Obtain a Minnesota SSTS Business License Surety Bond?

BondExchange makes obtaining a Minnesota SSTS Business License 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? Gain access 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 ensure that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

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Is a Credit Check Required for the Minnesota SSTS Business License Surety Bond?

No, a credit check is not required for the Minnesota SSTS Business License Bond. Because this bond is considered relatively low-risk, the same low rate is offered to all septic system contractors in Minnesota.

How Much Does the Minnesota SSTS Business License Surety Bond Cost?

The $25,000 Minnesota SSTS Business License surety bond costs either $250 per year or $25 per month.

Who Needs to Obtain an SSTS Business License?

The MPCA requires all businesses that design, install, repair, maintain, operate, or inspect septic systems to obtain an SSTS Business License.

BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.

How do Contractors Apply for an SSTS Business License in Minnesota?

Septic system contractors in Minnesota must navigate several steps to secure an SSTS Business license. Below are the general guidelines, but contractors should refer to the application form for details on the process.

License Period – All Minnesota SSTS Business Licenses expire annually and must be renewed before the expiration date

Step 1 – Start a Business

Contractors must create a business entity and register with the Minnesota Secretary of State prior to submitting their license application

Step 2 – Hire a Certified Individual

Contractors must employ at least one certified designated individual who has the necessary training and expertise to handle the day-to-day operations of the contracting business. To become a certified designated individual, one must complete the application, pass the required licensure exam, and meet all of the qualifications outlined here.

Step 3 – Purchase Insurance

All contractors applying for the SSTS Business License must purchase liability insurance with a minimum limit of $100,000. Contractors with employees must also purchase workers’ compensation insurance.

Step 4 – Purchase a Surety Bond

Contractors must purchase and maintain a $25,000 SSTS Business License surety bond

Step 5 – Complete the Application

All SSTS Business License applications should be mailed to the following address:

SSTS Licensing Coordinator
Minnesota Pollution Control Agency
520 Lafayette Rd N
St. Paul, MN 55155

Contractors must pay a $200 licensing fee for each license specialty area per year ($400 maximum). Completed applications will contain the following information:

• • License Status
  • License Specialty Areas
    • Installer
    • Maintainer
    • Designer
    • Inspector
    • Service Provider
    • Intermediate Designer
    • Intermediate Inspector
    • Advanced Designer
    • Advanced Inspector
  • Legal Business Name
    • Dba
    • Designated address
    • City
    • State
    • Zip Code
    • County
    • Telephone
    • Business Email
    • Fax
  • Business Type
    • Individual
    • Partnership
    • Corporation
    • Limited Liability Company
    • Limited Liability Partnership
    • Foreign Corporation
  • MN Business Tax ID Number
  • Contact Person Name
    • Mailing Address
    • City
    • State
    • ZIp Code
    • Contact Person Telephone
    • Contact Person Email
  • Owners, Partners, or Officers Information
  • Bond and Insurance Information
    • Bond
    • General Liability Insurance Certificate
    • Workers Compensation Insurance Certificate
  • DCI Information

How Do Minnesota Septic System Contractors Renew Their SSTS Business License?

The MPCA will mail out a renewal application approximately six weeks before the license expiration date. Contractors should mail the renewal application to the following address:

SSTS Licensing Coordinator
Minnesota Pollution Control Agency
520 Lafayette Rd N
St. Paul, MN 55155

All Minnesota SSTS Business Licenses expire annually and must be renewed before the expiration date

What Are the Insurance Requirements for the Minnesota SSTS Business License?

The State of Minnesota requires SSTS Business License holders to purchase liability insurance with a minimum limit of $100,000. Businesses with employees must also purchase workers’ compensation insurance. Businesses must purchase and maintain a $25,000 SSTS Business License surety bond.

How Do Minnesota Septic System Contractors File Their Bond?

Contractors should mail their completed bond form, including the power of attorney, to the following address:

SSTS Licensing Coordinator
Minnesota Pollution Control Agency
520 Lafayette Rd N
St. Paul, MN 55155

The SSTS Business License surety bond requires signatures from both the surety company and a representative from the contractor. The surety company should include the following information on the bond form:

• Legal name, address, and phone number of the entity/individual(s) buying the bond
• Surety company’s name, address, and phone number
• Date the bond goes into effect
• Date the bond is signed and sealed

What Can Septic System Contractors Do to Avoid Claims Against the Minnesota SSTS Business License Bond?

To avoid claims on the SSTS Business License Bond, contractors must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:

• Do not commit any acts of fraud
• Honor all contractual agreements

What Other Insurance Products Can Agents Offer Septic System Contractors in Minnesota?

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

How Can Insurance Agents Prospect for Minnesota Septic System Contractor Customers?

Minnesota conveniently provides a public database to search for active SSTS Business License Holders. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.