Minnesota Technology System Contractor Bond: A Comprehensive Guide
This guide provides information for insurance agents to help technology system contractors on Minnesota Technology System Contractor Bonds
At a Glance:
- Lowest Cost: $250 per year or $25 per month
- Bond Amount: $25,000
- Who Needs It: All individuals and business entities seeking to obtain a Technology System Contractor 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 Technology System Contractors in Minnesota: The Minnesota Department of Labor and Industry (MDLI)
Minnesota Administrative Rule 326B.31 requires technology system contractors operating in the state to obtain a license with the MDLI. The Minnesota legislature enacted licensing laws and regulations to ensure that contractors engage in ethical business practices. In order to provide financial security for the enforcement of the licensing law, technology system contractors in Minnesota must purchase and maintain a $25,000 Technology System Contractor Surety Bond to be eligible for licensure.
What is the Purpose of the Minnesota Technology System Contractor Bond?
Minnesota requires contractors to purchase the Technology System Contractor Bond as part of the application process to obtain a Technology System Contractor License. The bond ensures that the public will receive compensation for financial harm if the contractor fails to comply with licensing regulations. In short, the bond is a type of insurance that protects the public if the contractor breaks licensing laws.
How Can an Insurance Agent Obtain a Minnesota Technology System Contractor Surety Bond?
BondExchange makes obtaining a Minnesota Technology System Contractor 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.
Is a Credit Check Required for the Minnesota Technology System Contractor Surety Bond?
No, a credit check is not required for the Minnesota Technology System Contractor Bond. Because this bond is considered relatively low-risk, the same low rate is offered to all technology system contractors in Minnesota.
How Much Does the Minnesota Technology System Contractor Surety Bond Cost?
The $25,000 Minnesota Technology System Contractor surety bond costs either $100 per year or $10 per month.
How Does Minnesota Define “Technology System Contractor”?
To paraphrase Minnesota Statute 326B.31subd30, a technology system contractor is an independent business entity that installs, alters, and repairs any electrical wiring, apparatus, or equipment for technology circuits or systems.
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 Technology System Contractors Apply for a License in Minnesota?
Contractors in Minnesota must navigate several steps to secure their Technology System Contractor License. Below are the general guidelines, but contractors should refer to the application form for details on the process.
License Period – The Minnesota Technology System Contractor License expires on July 31 of even-numbered years (2022, 2024, etc.) and must be renewed before the expiration date
Step 1 – Start a Business
Step 2 – Hire a Power Limited Technician
Contractors must employ at least one licensed power limited technician who has the necessary training and expertise to handle the day-to-day operations of the contracting business. Technicians must complete the Certificate of Responsible Individual and meet one of the following experience criteria:
- Graduate of a four-year electrical course from an accredited college or university,
- Have 36 months of acceptable experience in planning for, laying out, supervising and installing wiring, apparatus, or equipment for power limited systems
Step 3 – Purchase Insurance
Technology system contractors must purchase liability insurance with the following minimum limits:
- $100,000 per person
- $300,000 per occurrence
- $50,000 for property damage
Contractors with employees must also purchase workers’ compensation insurance
Step 4 – Purchase a Surety Bond
Contractors must purchase and maintain a $25,000 technology system contractor surety bond
Step 5 – Complete the Application
How Does a Minnesota Technology System Contractor Renew Their License?
Contractors can renew their licenses online here. The company’s licensed power limited technician must show proof that sixteen hours of approved continuing education have been completed each renewal period. The Minnesota Technology System Contractor License expires on July 31 of even-numbered years (2022, 2024, etc.) and must be renewed before the expiration date.
What Are the Insurance Requirements for the Minnesota Technology System Contractor License?
The State of Minnesota requires technology system contractors to obtain liability insurance with the following minimum limits:
- $100,000 per person
- $300,000 per occurrence
- $50,000 for property damage
Contractors with employees must also obtain workers’ compensation insurance. All technology system contractors must purchase and maintain a $25,000 Technology System Contractor Bond.
How Do Minnesota Technology System Contractors File Their Bond?
Contractors should submit their completed bond form, including the power of attorney, online along with their license application. The Technology System Contractor 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
- Date the bond goes into effect
- Date the bond is signed and sealed
What Can Contractors Do to Avoid Claims Against the Minnesota Technology System Contractor Bond?
To avoid claims on the Technology System Contractor Bond, contractors must follow all license 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 Technology System Contractors in Minnesota?
Minnesota requires technology system contractors to obtain liability insurance. Contractors with employees will also need to purchase workers’ compensation insurance. 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 Technology System Contractor Customers?
Minnesota conveniently provides a public database to search for active technology system contractors 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.