Minnesota Surety Bond Types
One way Minnesota's state government protects its "land of 10,000 lakes" is by requiring surety bonds in many of its industries. Surety bonds encourage small and large businesses alike to follow both local and state laws by holding them financially accountable for the decisions they make. Bonds also protect consumers from companies that may choose to make unethical business decisions.
One specific type of bond required by the Minnesota state government is the individual sewage treatment system professional bond. The Minnesota Pollution Control Agency requires companies or individuals that work as sewage treatment system professionals to get bonded to ensure they follow health and safety regulations, which aim to protect the citizens of Minnesota and their numerous lakes from possible contamination. If a business or individual, who acts as the bond's principal, fails to adhere to the stipulations stated in the bond, then the principal is responsible for paying retribution up to the bond's full amount. The surety company then pays the obligee, which is oftentimes the Minnesota state government or one of its departments, and then the principal must repay the surety company.
Minnesota Surety Bond Requirements
Most businesses in Minnesota's industries must be bonded to operate legally, so be sure to check both local and state regulations to see if your business needs to be bonded. You can still take advantage of all the great benefits a surety bond offers even if your business isn't required to be bonded. You can get a surety bond just to give your business a little extra protection from unexpected events like employee theft.
Before applying for a bond, make sure you have a thorough understanding of your financial history. The surety company will require a credit check and review of financial statements from your business before issuing you a bond. This is done to ensure that you and your business are financially sound enough to pay the bond's full face value, since you would be responsible for reimbursing the surety if a claim should be made against your bond.
If you're not sure what type of bond is right for you or your business, try browsing through SuretyBonds.com. We also have surety bond specialists who can assist you in getting the best bond for your needs. After you submit a bond application, you could receive a price quote back within a few short days.