Minnesota Surety Bonds

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.

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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Surety Bond Cost Calculator

Bond Type Select Your Required Bond Auto Dealer BondCollection Agency BondContractor License BondDebt Collector BondFreight Broker BondMedicare/Medicaid BondMortgage Broker BondRetail & Professional Services BondSchool BondSmall Loan Company BondSports Permit BondTax & Utility BondTelemarketing BondTravel Agent BondAll Other License Bonds

State Requiring the Bond Select Your StateAlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWashington D.C.West VirginiaWisconsinWyoming

Surety Bond Amount ($)

Select Your Credit Score Please select Above 700 650 - 699 600 - 649 550 - 599 549 and under

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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.

Contract Bond Application

Applying for a contract bond is easy. All you need to do is fill out the online application. We’ll then get in touch with you 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 us:

Bryant Surety Bonds

Bryant Surety Bonds, Inc. is a surety bond agency based in Pennsylvania. Licensed in all 50 states and with access to over 20 T-listed, A-Rated bonding companies, we have the contacts, expertise, and top service to provide you with a hassle-free experience, all while offering competitive rates for your surety bond.