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".
|Freight Broker Bond (BMC-84)||FMCSA||N/A||Apply Now|
|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.
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.
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.
Surety Bond Cost Calculator
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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!