Minnesota mechanical bonds.
$438 flat.

To contract for gas, heating, ventilation, cooling, air conditioning, fuel-burning, or refrigeration work in Minnesota, you must file a $25,000 mechanical bond with the Department of Labor and Industry under Minn. Stat. 326B.197. The premium for this bond is set by our carrier at $438 flat.

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Required to contract gas / HVAC / refrigeration work under Minn. Stat. 326B.197

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Fixed price, fixed amount — $25,000 bond, $438, no quote process

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No state license, but the bond is mandatory to contract this work statewide

A-ratedA.M. Best carriersInstantunderwriting process2-yr termset by the carrier

Trusted by industry leaders

How it works

Three steps. One sitting.

The mechanical bond is about as simple as surety gets. Here's the entire process:

NOW · ONLINE

Apply online

Business details and an effective date. That is the application — no financials, no credit section on this bond.

MINUTES, USUALLY

Pay & e-sign

Fixed-amount bonds like this are among the many that issue right after purchase.

SAME DAY

File with the Department of Labor and Industry

Your executed bond arrives by email, ready to file with DLI on the form it approves. Wet-ink original mailed on request.

About this bond

What it is and who needs it.

What the mechanical bond actually guarantees

Minnesota does not issue a statewide mechanical contractor license, but under Minn. Stat. 326B.197 anyone who contracts to do gas, heating, ventilation, cooling, air conditioning, fuel-burning, or refrigeration work must give and maintain a $25,000 bond with the State, filed with the Department of Labor and Industry, Construction Codes and Licensing Division.

The bond is for the benefit of persons suffering financial loss because of the contractor's failure to comply with the State Mechanical Code. A party harmed by non-compliant mechanical work can recover against the bond, up to the $25,000 penal sum.

The DLI bond filing is generally valid for two years (a $100 filing fee at DLI, separate from the surety premium). It is not insurance for you — if the surety pays a claim, you repay the surety. Contractors who work to code treat the bond as a cost of doing business, not a risk.

Minn. Stat. 326B.197Minn. Stat. 326B.197 requires a person contracting to do gas, heating, ventilation, cooling, air conditioning, fuel-burning, or refrigeration work in Minnesota to give and maintain a $25,000 bond to the State, on a form approved by the Department of Labor and Industry, for the benefit of persons suffering financial loss from the contractor’s failure to comply with the State Mechanical Code. The DLI filing is generally valid two years (a $100 filing fee, separate from the surety premium).

You need this bond if you're

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Contracting gas or fuel-burning work such as gas piping or appliance installation

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Doing HVAC work — heating, ventilation, cooling, or air conditioning

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Installing refrigeration equipment as a contractor in Minnesota

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Renewing your DLI bond filing on its two-year cycle

One application, issued instantly.

These are the actual issuing fields — no credit section, because this bond doesn't collect credit information.

Start the application →

FAQ

Common questions.

How much is the Minnesota mechanical bond?The premium is $438 — set by our carrier’s rate book for this bond. The $25,000 bond amount is set by statute, so there is no quote process. (DLI also charges a separate $100 filing fee.)

Do I pay the $25,000?No. You pay $438. The $25,000 is the surety's maximum liability to harmed parties — not a deposit, and nobody holds your money.

Do I need a license too?Minnesota does not issue a statewide mechanical contractor license, but the $25,000 bond is mandatory under Minn. Stat. 326B.197 to contract gas/HVAC/refrigeration work. Local jurisdictions may have their own licensing.

Is there a credit check?Not on this bond — the application collects no credit information. Fixed-amount bonds like this one typically don't need one.

How long is the filing good for?The DLI bond filing is generally valid for two years, with a $100 renewal fee at DLI. The carrier issues this bond for a single 2-year term; a 2-year term lines up with the DLI cycle. We send renewal notices 60 and 30 days out.

Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.

How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.

Related bonds

Other Minnesota bonds.

Mechanical bond, issued today.

$438 flat, no credit review, bond often issued in the same sitting. Free until issued.

Start application

Your price$438

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