Minnesota Surety Bonds

Surety Bond Requirements in MN

The state of Minnesota requires certain professionals, companies, and tradespeople to post a surety bond to help protect their customers. In addition to state-required bonds, you may need bonds to work in certain cities and counties. Minnesota has a large number of locally-required bonds for many cities, including Minneapolis, Duluth, and St. Paul.

NNA Surety Bonds has been providing affordable policies to companies and individuals across the United States since 1957. We carry popular MN bonds, including:

  • Building contractor bonds
  • HVAC/Mechanical contractor bonds
  • Motor vehicle dealer bonds
  • Plumbing contractor bonds
  • Roofing contractor bonds
  • Electrical contractor bonds

We offer the following surety bonds in the state of Minnesota:

Building Contractor/Remodeler Bond

Minnesota does not have a statewide bond for general building contractors. Instead, contractors and remodelers are required to pay into the state’s Contractor Recovery Fund to protect consumers. However, several cities in the state do require general or commercial contractor bonds, including Minneapolis, St. Paul, Brainerd, St. Cloud, and Circle Pines.

Be sure to check local licensing laws in your area to see if a surety bond is required for you to be licensed as a building contractor or remodeler. If you have questions, feel free to contact our bonding specialists.

Credit Services Organization Bond

A credit services organization (CSO) licensed by the Minnesota Department of Commerce must obtain a $10,000 surety bond in order to do business in the state. The bond should be included when applying for a license through the Nationwide Multistate Licensing System (NMLS).

Your bond helps protect consumers by providing financial recourse should they make a successful claim of fraudulent or illegal actions by your credit services organization. The annual premium cost for this bond is just $100.

Electrical Contractor Surety Bond

Electrical contractors must submit a $25,000 surety bond with their contractor’s license application to the Minnesota Department of Labor and Industry. The bond agreement states that the contractor will faithfully and lawfully perform all duties as outlined by the license and all pertinent MN statutes and rules. Based on your credit, the annual premium for this bond can start as low as $219.

HVAC/Mechanical Contractor Bond

While there is no state license requirement for mechanical contractors, the Minnesota Department of Labor and Industry requires that you file a $25,000 mechanical contractor bond if you perform gas, heating, ventilation, cooling, fuel burning, or refrigeration work in the state.

Several municipalities in Minnesota do require licensing as well as bonding. The bond can be tapped in the event that consumers or the state are harmed by unethical or illegal acts by the contractor. Applicants with good credit can pay as little as $250 for this bond.

Motor Vehicle Dealer Bond

Anyone engaged in the business of selling new or used cars and trucks in Minnesota must post a $50,000 surety bond to the Minnesota Department of Public Safety, unless licensed as a DSB dealer. DSB dealers, who sell mopeds and trailers for boats, snowmobiles, and horses, are required to post a $5,000 surety bond.

Premiums for a $50,000 motor vehicle dealer bond start at $300 for applicants with good credit. $5,000 bonds for DSB dealers are available for $100 through NNA Surety Bonds.

Plumbing Contractor Surety Bond

To work as a licensed Minnesota plumbing contractor, you are required to submit a $25,000 bond to the Minnesota Department of Labor and Industry. In the event of non-delivery of services or other issues that harm a customer, a claim may be filed against the bond up to its full amount.

The bond premium for the Minnesota plumber’s license bond starts at $219 for applicants with excellent credit.

Roofing Contractor Surety Bond

Residential roofers in Minnesota are required to post a $15,000 surety bond to the Department of Labor and Industry. The bond provides compensation to injured parties if the plumber fails to provide services or violates any laws, ordinances, or rules pertaining to provision of the plumber’s license. With a good credit rating, your cost for this bond can start at just $150.

Minnesota Surety Bond Costs
Bond Name Coverage Amount Cost
(Annual Premium)
Regulatory Authority
Building Contractor/Remodeler Bond Varies Varies Local City Agencies
Credit Services Organization Bond $10,000 $100 Minnesota Department of Commerce
Electrical Contractor Bond $25,000 $219* Minnesota Department of Labor and Industry
HVAC/Mechanical Contractor Bond $25,000 $250* Minnesota Department of Labor and Industry
Motor Vehicle Dealer Bond $5,000/$50,000 $100/$300* Minnesota Department of Public Safety
Plumbing Contractor Bond $25,000 $219* Minnesota Department of Labor and Industry
Residential Roofing Contractor Bond $15,000 $150* Minnesota Department of Labor and Industry

* Cost can vary depending on the bond amount required and your credit rating

Get Your Minnesota Surety Bond


Our knowledge of Minnesota bond requirements allows us to provide accurate quotes quickly. For guidance through the process of selecting or renewing surety bonds for your business, talk to one of our experts today.

For faster service, call us at 855-215-2160
Monday to Friday, 6 a.m. to 5 p.m. (PT)