Minnesota Surety Bonds Overview

Surety bonds are common requirements for business license applicants in the state of Minnesota. Prior to getting your license, you may be required to submit a bond to the agency issuing your license.

Contractors are also frequently required to get bonds before they can participate in any way on state government or federal construction projects.

How do surety bonds work?

Surety bond agreements act as a guarantee that the bonded party, the bond principal, will comply with the conditions of the agreement. Bonds usually require principals to follow state laws and regulations and to commit to particular obligations and responsibilities, depending on their type of business.

Bonds also work as protection for the parties that request the bond and are benefited by it - the bond obligees. If a bond principal violates the bond agreement and causes losses or damages to obligees, the latter may file a claim against the bond to receive financial compensation.

See our detailed ‘What is a surety bond’ guide to learn more about how bonds work!

To get bonded right away, you can find the bond you need by searching the table below. Follow the application link and we’ll get in touch with you shortly.

To find out more about surety bonds in Minnesota, see the sections below the table. We’ve compiled everything you need to know about the types of surety bonds, how your cost is calculated, and how you can get bonded.

Find the Bond You Need

The table below contains a list of only the most popular surety bonds. If you can't find yours, fill out our online application and select "Not in the list".

Agricultural (Non-Livestock) Bond Minnesota Dept of Agriculture Agricultural (Non-Livestock) Bond Apply Now
Contractor License (No P&P Language) Bond Minnesota Department of Labor and Industry Mechanical License Bond Apply Now
Contractor License Performance & Payment (Local) Bond City of Circle Pines General Contracting License Bond Apply Now
Contractor License Performance & Payment (State) Bond Dept of Labor and Industry Electrical Contractor Bond Apply Now
Contractor License Performance & Payment (State) Bond Dept of Labor and Industry Sign Contractor Apply Now
Contractor License Performance & Payment (State) Bond Dept of Labor and Industry Mechanical $25K Apply Now
Contractor License Performance & Payment (State) Bond Minnesota Department of Labor and Industry Technology System Contractor Bond Apply Now
Contractor License Performance & Payment (State) Bond State of Minnesota Non-Minnesota Contractor's Bond Apply Now
Investment Advisor (Blue Sky) Bond State Of Minnesota Investment Advisor Apply Now
Collection Agency Bond Commissioner,Dept of Commerce Collection Agency (Corp/LLC) Apply Now
Collection Agency Bond Commissioner,Dept of Commerce Collection Agency (Partnership) Apply Now
Collection Agency Bond Commissioner,Dept of Commerce Collection Agency (Sole Prop.) Apply Now
Debt Consolidators Bond Dept of Commerce - Div of Financial Institutions Credit Service Organization Apply Now
Professional Fund Raisers Bond Office of the Attorney General Professional Fund Raisers Bond Apply Now
Insurance Adjusters Bond Department of Commerce Public Adjuster Surety Bond Apply Now
Mortgage Broker (1st & 2nd Mortgages) Bond Dept of Commerce Residential Mortgage Originator Apply Now
Mortgage Broker (1st & 2nd Mortgages) Bond Dept of Commerce, Division of Financial Examinatio Residential Mortgage Servicer Apply Now
Mortgage Lender/Banker (1st & 2nd Mort.) Bond Dept of Commerce Mortgage Lender Apply Now
Defective Title Bond MN Dept of Public Safety, Motor Vehicles Ownership and Security Intrest Bond Apply Now
Auto & Mobile Home Dealers (New & Used) Bond Department of Public Safety - Driver and Vehicle S Motor Vehicle Dealer Apply Now
Auto & Mobile Home Dealers (New & Used) Bond Minnesota Department of Labor and Industry Manufactured Home Dealer Apply Now
Auto & Mobile Home Dealers (Used Only, No New) Bond Department of Public Safety - Driver and Vehicle S Motor Vehicle Dealer Apply Now
Sport Permits Bond MN Office of Combative Sports Promoters Bond Apply Now
Health Spas/Health Clubs Bond State of Minnesota Health, Dating or Buying Club Apply Now
Auctioneers (Other than Livestock) Bond Hennepin County Auctioneers (Other than Livestock) Bond Apply Now
Auctioneers (Other than Livestock) Bond Dakota County Auctioneers Bond (Dakota County, MN) Apply Now
Detectives Bond State of Minnesota Protective Agent for Fee Bond Apply Now
Detectives Bond State of Minnesota Private Detective or Investigator For Free Bond Apply Now
Retail Stores & Service Shops City of Anoka, MN (City of Anoka, MN) Liquor License Type Bond Apply Now
Medicare & Medicaid (Home Agencies, State) Bond Dept of Human Services PCA Agency Bond Apply Now
Medicare & Medicaid (Durable Equip, State) Bond MN Dept of Human Services DMEPOS Bond Apply Now
Professional Licenses (All Other) Bond Department of Human Services, State of Minnesota Professional Licenses (All Other) Apply Now
Professional Licenses (All Other) Bond MN Department of Commerce Dept. of Commerce Currency Exchange Apply Now
Professional Licenses (All Other) Bond State Fire Marshall Division Fire Protection Bond Apply Now
Professional Licenses (All Other) Bond State of Minnesota Bullion Coin Dealer Bond (Corporation/LLC) Apply Now
Professional Licenses (All Other) Bond State Of Minnesota Franchisor Bond Apply Now
Professional Licenses (All Other) Bond Commissioner of Human Services Interpreter Agency Bond (U Care Minnesota) Apply Now
Professional Licenses (All Other) Bond Minnesota Department of Commerce Service Contract Provider Bond Apply Now
Professional Licenses (All Other) Bond Licenses and Consumer Services Wrecker of Buildings License Bond (Class B) Apply Now
Schools (All) Bond Department of Transportation MINNESOTA DEPARTMENT OF TRANSPORTATION Apply Now
Schools (All) Bond Minnesota Office of Higher Education Private School Bond Apply Now
Schools (All) Bond MN Driver and Vehicle Services Commercial Driver Training School Bond Apply Now
Alcohol (Manufacturers, Warehouses, Wholesalers) Bond Department of Public Safety Alcohol and Gambling E Alochol & Gambling Enforcement direcor Manufactors Apply Now
Fuel Tax (All Others, Sellers & Users) Bond MN Dept of Public Safety International Fuel Tax Agreement and International Apply Now
Utility Deposit Bond anoka municipal utility (AMU) Anoka Municipal Utility Bond Apply Now
Auctioneer's (Net Proceeds Meet Amount) Bond Hennepin County (Hennepin County, MN) Auctioneer Bond Apply Now
Wages & Fringe Benefits Bond MN & ND Bricklayers and Allied Craftworkers Fringe Benefit Bond (MCTCA) Apply Now
Lottery Bond Minnesota State Lottery Lottery Bond Apply Now
Money Transmitter Bond STATE OF MINNESOTA DEPARTMENT OF COMMERCE CURRENCY Money Transmitter Apply Now

Types of Surety Bonds in Minnesota

There are three main types of surety bonds that are typically needed:

  • License and permit bonds
  • Contract bonds
  • Court bonds

Read on for more information on these different types of bonds.

License & Permit Bonds

The state government of Minnesota requires a variety of businesses to obtain a business license before they can do business. When getting licensed, many businesses also need to obtain a license and permit bond, sometimes called a commercial bond, and submit it to the relevant state authority.

License bonds are a guarantee that licensed and bonded businesses will comply with state regulations, and all rules pertaining to their particular type of business. They thus serve as protection, through financial compensation, to customers and the state in cases where regulations are not complied with, and businesses act dishonestly.

The freight broker bond and the auto dealer bond are among the most commonly requested bonds, though many other businesses also need to get bonded.

Contract Bonds

Contract bonds are required of licensed and bonded contractors who have been hired to work on a construction project in the state. They are also relevant to those who wish to participate in a bid on a project, and in a number of other cases.

The purpose of these bonds is to provide a guarantee to project owners that bonded contractors will perform in accordance with state regulations, as well as the conditions set forth in the construction agreement.

Court Bonds

Some Minnesota courts may require appellants to obtain court bonds when appealing a ruling. At other times, when a fiduciary is appointed by a court, the court may require that person to obtain the respective type of bond to guarantee their trustworthiness.

You can find out more about all types of surety bonds by calling us at (866)-450-3412, to speak to one of our surety bond professionals.

What Do Surety Bonds Cost in Minnesota?

The surety bond premium, or rate, is the cost of obtaining your surety bond. It is a percentage of the total amount of your bond.

This total amount, or penal sum, is the maximum amount of compensation that your surety may extend to the bond’s obligees if there is a claim against your bond.

How is the bond premium determined?

When setting the rate at which you can get your bond, the surety usually checks your personal credit score first. In order to determine your rate, sureties need information about your reliability and financial stability, and credit score has proven to be a very efficient indicator of these. Your surety will likely also look at your:

  • Personal and business financial statements
  • Asset profile
  • Overall work record
  • Industry experience

Respectively, those applicants with a high credit score, one of 700 FICO or more, are given lower rates on their bond. If you have a high score, you can expect your premium to be somewhere between 1%-4% of the full amount of your bond.

But just because they don’t have a perfect score, doesn’t mean applicants with credit troubles are out of luck. Such applicants can also obtain a bond though at a rate that’s between 5%-15%.

Higher rates for applicants with low credit are due to the increased risk that sureties perceive in issuing bonds for them. Yet, by improving their credit score and financial standing over time, such applicants can qualify for standard market rates.

Try our surety bond cost calculator below to get an idea of how much it may cost to get your bond.

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Want to know more about bond cost? Our surety bond cost page contains more detailed information about how sureties determine rates.

How to Get Bonded in Minnesota

Applying for your surety bond takes only a few minutes with our quick and simple application process.

License bond application

If you need a license bond, simply complete our online bond form. We’ll then contact you with a free and exact quote on your bond, along with further details on finishing the bonding process.

Start your surety bond application today! Why us?
  • Quick turnaround - just 1-2 business days
  • Tailor-made advice on building a strong application
  • Exclusive bad credit programs

Contract Bond Application

To apply for a contract bond, download the application form you need, based on the amount of your contract. Complete the form and send it to us. We’ll get in touch with you shortly to provide you with more information.

Do you have any further questions about the bonding requirements in Minnesota? Call us at (866)-450-3412 anytime!

Further Reading


About the author:
Todd Bryant
Todd Bryant is a graduate of Germantown Academy and the University of Pittsburgh College of Business Administration Honors College. He has been President of Bryant Surety Bonds, Inc., an A+ rated Business with the Better Business Bureau, since 2007. Licensed as a producer with the Department of Insurance, he has been published in the National Association of Surety Bond Producers newsletter and on numerous authoritative publications such as The Washington Post, Entrepreneur.com, Azcentral.com and many more.