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Minnesota Contractor License Bond

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What is a Minnesota Contractor License Bond?

Licensed construction contractors throughout various cities and counties in Minnesota are required to hold a valid license to perform work legally. Part of the licensing process involves posting a surety bond, known as a Minnesota contractor license bond. While there is not a state requirement for all construction contractors, the need to secure a contractor license bond is required by several local jurisdictions.

The Minnesota contractor license bond is designed to protect the customers and suppliers of construction contractors, not the contractor himself. When work is not done properly or is not completed, a claim against a Minnesota contractor license bond can be made to help cover financial losses.

Who Needs a Minnesota Contractor License Bond?

In the state of Minnesota, many different types of construction contractors are required to secure a contractor license bond. For instance, any contractor working in Brainerd county must have a surety bond in place. Specialty contractors working throughout the state may also need to get a Minnesota contractor license bond, including those who perform work in the categories of water conditioning, sewage treatment, sign installers, residential roofing, plumbing, or electrical contracting. It is essential to check with your local jurisdiction to determine which Minnesota contractor license bond is necessary based on the projects you plan to complete.

Minnesota Contractor License Bond Obligee Details

Surety bonds represent a contractual agreement between three parties: the principal, which is the contractor responsible for getting a bond, the surety company that provides the bond, and the obligee, which is the licensing authority mandating a bond be in place.

The obligee for a Minnesota contractor license bond varies depending on where the contractor works. For example, licensed contractors working in the city of Minneapolis who are required to post a bond do so with the Licenses and Consumer Services Division of the Minneapolis Community Planning and Economic Development Department as the obligee.

How Much Does a Minnesota Contractor License Bond Cost?

A Minnesota contractor license bond varies in price based on the amount of the bond and the credit history of the contractor. The total amount of the bond that must be in place is dictated by the type of contractor license held and the location in which the contractor plans to work.

As an example, a residential roofing contractor working in the state is required to have a bond of at least $15,000, while an electrical or elevator contractor must have at least a $25,000 bond. Fortunately, contractors only pay a fraction of the total bond requirement. This amount is calculated as a percentage of the bond total, typically ranging from 1 to 10%. Bond prices also depend on the credit history of the contractor, and those with strong credit pay a lower percentage cost than those with poor credit.

How do You Get a Minnesota Contractor License Bond?

Getting a Minnesota contractor license bond is a relatively easy process. You can start by submitting a bond quote request online, providing information about the type of bond you need and the amount. The surety company provides a bond quote, as well as instructions on how to complete the process. Minnesota contractor license bonds may need to be renewed on an annual basis to remain compliant with local and state regulations.


Frequent Questions

How much does a bond cost?

Pricing is a percentage of the contractor license bond amount that’s required of you, which is based on your personal credit. Use our bond pricing tool to to get a quick ballpark estimate.

Can I get bonded with bad credit?

Yes. You can apply and get bonded with bad credit. Our agency is the largest writer of bonds in the county, which allows us to approve contractors for bonds when other agencies cannot.

Are these the same as contract bonds?

No. Contractor license bonds ensure you will abide by the laws of your state, city or municipality when performing contracting work. Contract bonds guarantee public projects will be completed properly and are a separate bond type. You can learn more about contract surety bonds by visiting the contractor bond center.

Do I need a state or local bond?

It depends on who is requiring the bond of you, the local municipality, county or state. Depending on your location, it is possible you may need both a local and state bond, as contractor license bond requirements can vary drastically. You can select your state to see a full list of contractor license bond requirements.


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Our company has been with JW Surety for several years now so when we needed to obtain a bond for a new company, we immediately went to them for help. Our rep, Melissa, was extremely helpful and prompt which made the process extremely easy for me.
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Trying to get a local Surety Bond was like driving a car on three tires. I searched Surety Bonds and found JW Surety Bonds. I got online and filled out the information and with in 30 minutes received a response from Melissa. She was informative, friendly and helpful. One more super satisfied customer.

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About JW Surety Bonds
We are a family owned and operated agency established in 2003. We started with just two people, and grew to become the largest volume bond producer in the nation with 50+ employees. Since day one, our team focus has been on providing real-time online quotes, an easy process, and the best in claims defense. Learn more about our company.