What is a Minnesota Contractor License Bond?
Contractor licensees in Minnesota are required by the Minnesota Department of Labor and Industry, in pursuance of § 326B.0921 of the Minnesota Statutes, to procure a surety bond.
The purpose of the contractor license bond is to ensure that the contractor will faithfully perform the job that’s been awarded to him or her.
Various surety bonds are available for licensed contractors in the state. The surety bond will depend on the type of work the contractor specializes in or the project the contractor will work on.
What is the bond amount?
Those who have excellent credit scores may qualify for a very low bond premium!
Find out what you need to pay by getting your FREE quote here!
What are the Contractor License bond conditions?
- The bond should be issued by a corporate surety who is authorized to conduct business in the State of Minnesota such as Surety Bond Authority
- The surety bond should be made payable to the State of Minnesota
- The surety bond should be written on the form prescribed by the Commissioner of Labor and Industry
- The licensed Contractor is obligated to abide by the provisions of § 326B of the Minnesota Statutes, the rules and regulation of the Minnesota Department of Labor and Industry, the State Building Code, and all the other applicable rules
- If the licensed Contractor commits a valid violation, the aggrieved party will be eligible to file a claim on the bond
- The surety bond will remain valid until canceled. In the case of cancellation, a 30-day notice is required.
How can I secure this bond?
To secure this type of bond, the licensed Contractor must seek the assistance of a surety bond company.
You will be asked to apply for this bond.
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Job/business performance history
- Your credit score
Once the prequalification process is fulfilled, we will execute the bond and send it to you!
Are you ready to start on this bond? Apply HERE!