Minnesota Surety Bond
Apply for a Minnesota Surety Bond today! Absolute Surety is a leading MN surety bond company. Apply easily online and take advantage of lowest rates. Quickly browse the bonds we offer in this state, or contact us for a full list.
What Surety Bonds Are Needed In Minnesota?
The surety bonds that are mandatory in Minnesota fall into one of three broad categories: license and permit bonds, contractor bonds, and court bonds.
Minnesota License And Permit Bonds
Most license and permit bonds are a statewide requirement imposed by a state agency, such as the:
- Department of Labor and Industry, which issues a wide variety of contractor licenses (electrical, HVAC, residential, plumbing, etc.)
- Department of Agriculture, which issues licenses and permits to individuals and businesses engaged in activities related to agriculture, such as tree care companies, grain buyers, and grain warehouses
- Department of Public Safety, which licenses motor vehicle dealers
- Department of Commerce, which licenses credit services organizations, collection agencies, mortgage lenders, residential mortgage originators and servicers, and public adjustors
These and other agencies that issue licenses and permits may require applicants to obtain a surety bond, which protects consumers and guarantees that licensees conduct their businesses in compliance with all state regulations. License and permit bonds typically have an expiration date by which they must be renewed to maintain a valid license.
Contractor Bonds In Minnesota
Certain cities or municipalities require contractors to obtain payment or performance bonds before contractors can work on construction projects. Performance and payment bonds are required by law in most cases for public construction projects.
Minnesota Court Bonds
Minnesota courts often require plaintiffs or defendants to obtain a surety bond to ensure compliance with the terms imposed by the court. People serving in a fiduciary capacity (e.g., estate executors, guardians, conservators, or bankruptcy trustees) may also be required to obtain a bond as a guarantee that they will perform their duties in accordance with all applicable rules and regulations.
How Much Will A Surety Bond Cost?
The cost of a surety bond in Minnesota or elsewhere depends largely on the applicant’s credit history, which determines the premium rate. The total bond amount is multiplied by the premium rate to calculate the cost of the bond. Applicants with bad credit will generally pay a higher premium rate than those with good credit, but bad credit typically won’t cause an applicant to be rejected.
When A Claim Is Filed
If a claim filed against your bond is found to be valid, the surety company will pay it. Be aware, however, that it’s your responsibility to repay that amount to the surety company. Keeping accurate records will help the surety company defend you if you decide to contest a claim.
Our online application process makes it easy to get the bond you need. Apply today to take advantage of competitive rates.