Minnesota Electric Installer Bond: A Comprehensive Guide
This guide provides information for insurance agents to help Electric installers on Minnesota Electric Installer Bonds
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $1,000
- Who Needs It: All individuals and business entities seeking to obtain a Class A or Class B Electric Installer License in the State of Minnesota
- Purpose: To ensure the public will receive compensation for any damages should the contractor fail to comply with contractor licensing law
- Who Regulates Electric Installers in Minnesota: The Minnesota Board of Electricity (MBE)
Minnesota Statute 326B.33 requires all Class A and Class B electric installers, as a condition of licensure, to obtain a surety bond in the penal sum of $1,000. The Minnesota legislature enacted licensing laws and regulations to ensure that installers engage in ethical business practices. In order to provide financial security for the enforcement of the licensing law, electric installers in Minnesota must purchase and maintain a $1,000 Electric Installer Surety Bond to be eligible for licensure.
What is the Purpose of the Minnesota Electric Installer Bond?
Minnesota requires all electric installers to purchase the Electric Installer Bond as part of the application process to obtain a Class A or B Installer License. The bond ensures that the public will receive compensation for financial harm if the installer fails to comply with licensing regulations. In short, the bond is a type of insurance that protects the public if the installer breaks licensing laws.
How Can an Insurance Agent Obtain a Minnesota Electric Installer Surety Bond?
BondExchange makes obtaining a Minnesota Electric Installer Bond easy. Simply login to your account and use our keyword search to find the “contractor” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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Is a Credit Check Required for the Minnesota Electrical Installer Bond?
No, a credit check is not required for the Minnesota Electrical Installer Bond. Because this bond is considered relatively low-risk, the same low rate is offered to all contractors in Minnesota.
How Much Does the Minnesota Electric Installer Surety Bond Cost?
The $1,000 Minnesota Electric Installer surety bond costs just $100 per year or $10 per month.
How Does Minnesota Define “Electrical Installer”?
The Minnesota Department of Labor and Industry classifies electrical installers as either Class A or Class B installers:
- Class A Installer: An individual who has the necessary qualifications, training, experience, and technical knowledge to properly lay out and install electrical wiring, apparatus, and equipment for major electrical home appliances
- Class B Installer: An individual who has the necessary qualifications, training, experience, and technical knowledge to properly lay out and install electrical wiring, apparatus, and equipment on center pivot irrigation booms on the load side of the main service on farmsteads
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How do Electric installers Apply for a License in Minnesota?
Contractors in Minnesota must navigate several steps to secure their electric installer license. Below are the general guidelines, but contractors should refer to the licensing page for details on the process.
License Period – The Minnesota Electrical Installer License is valid for two years from the date of issuance and must be renewed before the expiration date
Step 1 – Meet the Experience Requirements
Class A and B electrical installers must obtain a minimum of 12 months of work experience prior to applying for licensure
Step 2 – Purchase a Surety Bond
Class A and B installers must purchase and maintain a $1,000 Electric Installer bond
Step 3 – Complete the Application
All new installer regulatory license applications and installer regulatory license renewal applications should completed online. Class B installers must pay a $50 application fee when. All fees can be paid online here.
Step 4 – Pass the Exam
After submitting their license application, installers must schedule and pass an exam prior to being issued their license
How Does an Minnesota Electric Installer Renew Their License?
Electric installers can renew their license online here. Installers must complete 16 hours of continuing education each renewal period. The Minnesota Electrical Installer License is valid for two years from the date of issuance and must be renewed before the expiration date
What Are the Insurance Requirements for the Minnesota Electric Installer License?
The State of Minnesota does not require electric installers to obtain any form of liability insurance. Installers must purchase and maintain a $1,000 Electric Installer Bond.
How Do Minnesota Electric Installers File Their Bond?
Installers should mail the completed bond form, including the power of attorney, to the following address:
Minnesota Department of Labor and Industry Construction Codes and Licensing Division Licensing and Certification Services
PO Box 64227
St. Paul, MN 55164-0227
The Electrical Installer surety bond requires signatures from both the surety company and the contractor. The surety company should include the following information on the bond form:
- Legal name, address, and phone number of the entity/individual(s) buying the bond
- Surety company’s name, address, and phone number
- License term
- Date the bond is signed and sealed
What Can Installers Do to Avoid Claims Against the Minnesota Electric Installer Bond?
To avoid claims on the Electric Installer Bond, installers must follow all installer regulations in the state, including some of the most important issues below that tend to cause claims:
- Do not engage in any acts of fraud
- Honor all contractual agreements
What Other Insurance Products Can Agents Offer Electric Installers in Minnesota?
Minnesota does not require electric installers to obtain any form of liability insurance, however most reputable installers will obtain insurance anyway. Bonds are our only business at BondExchange, so we do not issue any form of liability insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Minnesota Electric Installer Bond Customers?
Minnesota conveniently provides a public database to search for active installers in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.