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Surety Bonds in Minnesota

Viking Bond Service is here to help with all of your Minnesota surety bond needs. We work with all types of surety bonds, including contract and commercial bonds, and can help your business get the bond it needs to stay compliant with all state and federal regulations. Viking Bond Service is one of the leading suppliers of surety bonds in MN and the US. We have many years of experience helping businesses get the bond they need when they need it. Call, email, or use our online application form to talk to our team of experts today.

How Do Surety Bonds in Minnesota Work?

When someone must meet Minnesota surety bond requirements, step one is to obtain the bond. Getting a bond means entering into a surety bond agreement that requires the bondholder (called the principal) to meet certain conduct and performance standards. Those standards are established either in state and local laws or in contracts signed by the principal.

If the principal does something illegal or is in breach of contract, leading to financial losses for another person, the surety bond becomes relevant. The injured party (called the obligee) may file a claim against the bond seeking compensation equal to the cost of the damages to their person or property. As long as the claim proves to be accurate and valid under investigation, the obligee is guaranteed a full settlement up to the surety bond's penalty amount.

The principal must pay for all valid claims. However, if they refuse, the company that underwrites the bond (called the surety) issues a full settlement to the obligee without further delay or complication. As the party with liability, the principal must pay back the surety for any settlement or else have their bond coverage terminated and possibly face a lawsuit.

Who Needs a Surety Bond in Minnesota?

State and local governments often require entrepreneurs to get a surety bond before granting them a business license. Motor vehicle dealers, for example, need a bond before they go into business. Certain professionals may also need a bond to get a license. Contractors are one example – they often need surety bonds before starting specific jobs, which is why they are the most likely people to need a surety bond in Minnesota. But even people who never expect to need a bond may face such requirements at some point. Remember the name Viking Bond Service should that situation ever arise.

How to Get a Surety Bond in Minnesota

Getting the right surety bond in Minnesota is easy when you use an experienced bonding company like Viking Bond Service. The application process varies depending on the type of bond required. For commercial bonds, which are simple to underwrite, you'll complete the application by filling in our online application form and submitting any required documentation. Contract bonds have a slightly more detailed application; our bond experts will help you through the process over the phone. All applications require a credit check and may also require the applicant to submit information about their business experience and financial history. This information is used to calculate an accurate bond price.

The Cost of Surety Bonds in Minnesota

The cost of surety bonds in MN is determined by a number of factors, including bond type, bond amount, and the applicant's business experience, credit and financial standing. The supporting information submitted with your bond application is used to determine the bond cost. The bond premium is based on the risk level your bond poses to the surety underwriting the bond. Put simply, the bond underwriter will use all of the information in your application to calculate the chance that your bond will be claimed against. People with a good business history, strong business financials, and a high credit score will pay the lowest bond premium as their bond poses the least risk to the surety. If you have a poor credit score or limited business experience Viking Bond Service can still help you find an affordable bond.

Common Surety Bonds in Minnesota

The main types of surety bonds in Minnesota are commercial bonds, contract bonds, court bonds, and fidelity bonds. The Viking Bond Service experts have a long history of securing both types of surety bonds for businesses in Minnesota.

There are a huge variety of commercial bonds available in Minnesota – two types commonly found in the state include collection agency bonds and auto dealer bonds. These bonds are also known as license and permit bonds, as they are required to operate certain businesses in the state.

Contract bonds are commonly used in the construction industry. They provide a form of guarantee that the terms of a contract will be met as they offer financial reimbursement if the goods or services are not delivered. There are three common types of contract bonds in Minnesota; these are payment bonds, performance bonds, and maintenance bonds.

Court bonds are a type of surety bond required by a judge. Someone may need a court bond before a civil or criminal trial can proceed. That bond holds them liable for following the judge's final ruling. Another reason someone may need a court bond is to serve in a court-appointed role, such as the executor of someone's estate.

Fidelity bonds, while never required, are popular among Minnesota business owners. These bonds will pay for damages caused to a business or its customers by employee theft, fraud, vandalism or other misconduct.

Do You Need to Renew Surety Bonds in Minnesota?

Commercial bonds usually need to be renewed, along with any other type of bond where coverage expires sooner than the requirement to have coverage. Most surety bonds have a 12-month coverage term (longer and shorter are both also possible), after which the coverage expires. The surety will provide several renewal notifications. During a MN surety bond renewal, the surety will check the bond holder's credit once again and adjust the premium price up or down (or leave it the same) based on changes to credit standing. Paying the new premium renews coverage for another term.

Minnesota Surety Bonds by Viking Bond Service

The team at Viking Bond Service is here to help with all of your Minnesota surety bond needs. Our knowledgeable staff has been helping businesses in Minnesota secure the bond they need for many years. Call us at 1-888-2-SURETY (1-888-278-7389), contact us online, or use our application form to start your application today!