North Dakota Surety Bonds

Surety Bond Requirements in ND

The state of North Dakota requires contractors and certain businesses to post a surety bond as part of their licensure process. In addition to state-required bonds, several cities in North Dakota require surety bonds. In Jamestown or Grand Forks, for example, you’ll need to be bonded to perform several kinds of contracting jobs, such as building, plumbing, and excavating.

To make sure you’re in compliance with North Dakota bonding regulations, speak with one of our experts. NNA Surety Bonds has been providing affordable policies to companies and individuals across the United States since 1957. We carry the most popular ND bonds, including:

  • Contractor bonds
  • Collection agency bonds
  • Mortgage broker bonds
  • Motor vehicle dealer bonds

We offer the following surety bonds in the state of North Dakota:

Collection Agency Bond

Consumer and commercial debt collectors in North Dakota are required to be bonded by the state’s Department of Financial Institutions. You are required to file a $50,000 bond as part of the process to get or renew your license. Licensing for collection agencies is handled through the Nationwide Multistate Licensing System (NMLS), and authorizes the following activities:

  • Third-party debt collection
  • Active debt buying
  • Judgment Recovery
  • Other debt

The cost of a collection agency bond in North Dakota is a small percentage of the bond’s full coverage amount. It is paid as an annual premium and will vary based on your credit rating and business financial history.

Contractor License Bond

General contractors in ND are not required by the state to post a bond. But if you’re doing general contracting in the city of Grand Forks, or working as a master plumber, mechanical contractor, electrical contractor, excavator, or sign hanger, you’ll need a $5,000 surety bond. The city of Jamestown also requires contractors to post a bond.

The North Dakota State Board of Water Well Contractors stipulates a $15,000 bond for water well construction contractors, and a $2,000 bond for monitoring well installers and installers of pitless units and pumps.

You can connect with our bonding experts for help determining which type of contractor bond you need for your business.

Money Broker Surety Bond

North Dakota money brokers perform the same functions as mortgage brokers in other states, but also handle a wider variety of loans, such as:

  • Consumer loans
  • Commercial or industrial loans
  • Student loans

To do business in ND, money brokers must post a $50,000 surety bond to the Department of Financial Institutions. If you see a lower amount listed online, be aware that this bond’s sum was raised from $25,000 to $50,000 by the state in March 2019. The cost of your premium will depend on your credit score and business finances.

Motor Vehicle Dealer Bond

Car dealers in North Dakota must post a $25,000 surety bond to the Department of Transportation. The same bond is required of both new and used motor vehicle dealers. Your premium for this bond could be as low as 1% of the full bond amount—or $250—based on your credit.

It’s important to understand that, unlike business insurance, bonds protect customers. A dealer could face a bond claim by failing to comply with the terms of the bond or state statutes, not paying taxes and fees to the state, or committing fraud that harms customers. In this event, the injured party can be compensated up to the full value of the bond. You must then repay this back to the surety company. 

North Dakota Surety Bond Costs
Bond Name Coverage Amount Cost
(Annual Premium)
Regulatory Authority
Collection Agency Bond $50,000 $500* North Dakota Department of Financial Institutions
Contractor's License Bond $5,000-$15,000 $100* North Dakota Office of the Secretary of State and city governments
Money Broker Bond $50,000 $375 North Dakota Department of Financial Institutions
Motor Vehicle Dealer Bond $25,000 $250* North Dakota Department of Transportation

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

Get Your North Dakota Surety Bond

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Our team’s knowledge of North Dakota 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)

Providing Bonds and Insurance Since 1957