Minnesota - Service Contract Provider
Competitive Rates
| Bond Amount Required | Bond Term | Annual Premium |
| Varies; Minimum $25,000 | 1 Year | Starting at $250 |
Businesses that are contractually obligated to consumers under service contracts sold in Minnesota must register as service contract providers and meet the financial requirements established by state law. The Minnesota Department of Commerce requires providers using the funded reserve account option to maintain a financial security deposit, which may be satisfied with a surety bond, to help ensure the faithful performance of their obligations to service contract holders.
Cost of a Minnesota Service Contract Provider Bond
The annual premium for a Minnesota Service Contract Provider Bond starts at $250 with NNA Surety. The final cost varies based on the required bond amount and applicable underwriting. Get your bond from NNA Surety and use it today.
Why You Need a Service Contract Provider Bond
Minnesota service contract providers must meet one of the financial responsibility options established under Minnesota Statutes Chapter 59B. Providers choosing the funded reserve account option must maintain reserves of at least 40% of gross consideration received, less claims paid, on in-force service contracts.
These providers must also place a financial security deposit in trust with the Minnesota Department of Commerce. The deposit must equal at least 5% of gross consideration received, less claims paid, on service contracts issued and in force, with a minimum requirement of $25,000. A surety bond issued by an authorized surety is one permitted form of financial security.
The Minnesota surety bond involves three parties:
- Principal: Service contract provider
- Obligee: Minnesota Department of Commerce
- Surety: Bonding company
The Minnesota bond provides financial security for the provider's obligations to service contract holders. If a valid claim is made against the bond for a covered obligation, the surety may provide compensation up to the bond amount, and the provider is responsible for reimbursing the surety for any valid claim amount paid.
How to Get a Minnesota Service Contract Provider Bond
Follow this simple bonding process:
- Complete this bond application with your business, service contract, and financial information.
- Receive your required bond amount and premium based on your service contract obligations and applicable underwriting.
- Pay the applicable premium and provide the bond to the Minnesota Department of Commerce as part of your financial security requirements.
NNA Surety makes it quick and easy to obtain the financial security bond needed for your Minnesota service contract provider registration.
Apply for Your Minnesota Service Contract Provider Bond Today
Secure your Minnesota service contract provider bond and meet the applicable financial security requirements for your business. Apply Now to get started. For more information, call 855-457-2196 to speak to our team of Minnesota surety bond experts.