Residential Building Contractor License Bond in Minnesota
Requirements, filing process, and what you should expect to pay, without the broker pitch.
What this bond requires in Minnesota
Minnesota replaced traditional surety bonding with the Contractor Recovery Fund. Residential contractors pay a Recovery Fund assessment ($320-$520 based on gross annual receipts) that reimburses consumers up to $150,000 per claim (lifetime cap $550,000 per licensee). A $40,000 surety bond is only required for reinstatement after a Recovery Fund payout, and the licensee must repay twice the amount paid plus interest. Licenses renew every 2 years with 14 hours of continuing education.
Who requires it
The residential building contractor license bond is required by the Minnesota Department of Labor and Industry (DLI), Construction Codes and Licensing Division under Minn. Stat. ch. 326B (esp. 326B.802-326B.815 for residential contractors; 326B.89 for Contractor Recovery Fund).
How to file in Minnesota
New residential building contractors, remodelers, and roofers apply through DLI online licensing system with proof of general liability and workers compensation insurance, designation of a Qualifying Person who has passed the state exam, and payment of the license fee plus Contractor Recovery Fund assessment. No surety bond is filed at initial licensure or renewal. If reinstatement is required, the applicant must file a $40,000 surety bond with DLI before the license is restored.
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Common questions
Is a residential building contractor license bond required in Minnesota?
Minnesota does NOT require a surety bond for initial residential building contractor, remodeler, or residential roofer licensure or renewal. The Contractor Recovery Fund replaces bonding. A $40,000 surety bond is only required to reinstate a license after a Recovery Fund payout or other suspension.
How much is the bond in Minnesota?
Minnesota does not publish a single flat amount. See the state-specific notes for how it is determined.
Who requires the bond?
The bond is required by the Minnesota Department of Labor and Industry (DLI), Construction Codes and Licensing Division.
How is the bond filed?
New residential building contractors, remodelers, and roofers apply through DLI online licensing system with proof of general liability and workers compensation insurance, designation of a Qualifying Person who has passed the state exam, and payment of the license fee plus Contractor Recovery Fund assessment. No surety bond is filed at initial licensure or renewal. If reinstatement is required, the applicant must file a $40,000 surety bond with DLI before the license is restored.
What does the bond cover?
Surety bonds protect the obligee, not the principal. If you fail to meet the obligation the bond guarantees, the surety pays the claim and recovers from you.
Is a surety bond the same as insurance?
No. Insurance protects you. A surety bond protects whoever required the bond. You repay the surety for any claim they pay.
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Same bond, other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Other bonds in Minnesota