MN service contract provider bonds.
From $100. Enter your amount.
A company that sells extended warranties or service contracts in Minnesota registers with the commissioner of commerce under Minnesota Statutes chapter 59B and has to prove it can actually perform them. One of the three permitted routes pairs a funded reserve with a financial security deposit held for the commissioner — and a surety bond is an accepted form of that deposit. Our premium is priced at 1% of the bond amount, with a $100 minimum; the application collects no credit information, and most applications approve instantly.
Trusted by industry leaders
Apply to filed in one sitting.
Registration paperwork with Commerce takes as long as it takes. The security deposit does not — once you have run the 5 percent calculation, this is the quickest item on the checklist:
Apply online
Your company details, the deposit amount your filing requires, and an effective date. That is the entire application — no financial statements and no credit section.
Pay & e-sign
Your price is final at checkout — 1% of the bond amount, with a $100 minimum. The application collects no credit information, and most applications approve instantly. Larger deposits may get a brief underwriter look, and if a check runs it is a soft pull that will not affect your score.
File with Commerce
Your executed bond and power of attorney arrive by email, ready to file with the Department of Commerce alongside your registration or your annual renewal. Wet-ink originals mailed on request.
What it is and who needs it.
What the service contract provider bond actually guarantees
A service contract is a promise to repair, replace, or maintain something — a vehicle, an appliance, a phone, a furnace — for a term, in exchange for money paid up front. The consumer pays today for work that may not be needed for years, which is exactly the structure that fails badly when the provider disappears. Minnesota answers that with chapter 59B: the provider, not the seller or the administrator, is the party obligated to the contract holder, and it must register with the commissioner of commerce and prove it can perform.
Chapter 59B gives three ways to prove it, and only one of them involves a bond. A provider can (1) sit behind a reimbursement insurance policy from an insurer or risk retention group meeting a surplus test, (2) maintain a funded reserve of not less than 40 percent of gross consideration received, less claims paid, and place a financial security deposit with the commissioner, or (3) show a net worth or stockholders’ equity of $100,000,000, proved by a recent Form 10-K or 20-F or audited financials — with a parent guarantee if the numbers are the parent’s. This bond is the deposit inside route two.
That makes the amount a moving number rather than a fixed licence fee. The deposit must be worth not less than 5 percent of gross consideration received, less claims paid, on all service contracts issued and in force in Minnesota, and never less than $25,000 — so a growing book raises the requirement at renewal. Registration itself renews annually with a fee to the commissioner. It is not insurance for you: if the surety pays a contract holder, you reimburse the surety.
You need this bond if you are
One application, issued instantly.
These are the actual issuing fields — no credit section, because this application does not collect credit information. Enter the deposit amount your filing requires and your exact price is set at the application from a $100 minimum.
Start the application →Common questions.
Other Minnesota bonds.
Finish your chapter 59B registration.
Premiums from $100, no credit section, and the bond issues the moment you pay. Enter your deposit figure and file with Commerce the same day. Free until issued.