Minnesota Limited Well/Boring Contractor Bond
What it is & who requires it
Contractors licensed at the limited level under the well and boring chapter — the tier below the full well contractor. Read the scope table before pricing, because the two figures are five times apart and the dividing line is not obvious from a company’s name. The higher sum covers sealing wells and borings, dewatering wells, and bored geothermal heat exchangers — which is the line that matters most to the geothermal trade, since a ground-loop borehole is a boring under this chapter and the contractor drilling it is licensed and bonded here rather than under any mechanical credential. The lower sum covers pump and pumping equipment work, well screens, pitless units and adaptors, and casing from the pitless adaptor up to the top of the casing, which is the service-and-repair half of the trade. A contractor doing both holds both licenses. One drafting detail favors new entrants: the commissioner may not withhold a dewatering limited license for want of prior experience under a licensed well contractor, which is the only such provision in the family.
Obligee: Minnesota Department of Health (Well Management Section). Citation: Minn. Stat. § 103I.531, subd. 5(a) (bond — a corporate surety bond for $10,000 approved by the commissioner as a condition of a limited well/boring contractor’s license for sealing wells and borings, constructing, repairing and sealing dewatering wells, or constructing, repairing and sealing bored geothermal heat exchangers; a corporate surety bond for $2,000 for installing, repairing and modifying well pumps and pumping equipment, well screens, pitless units and pitless adaptors, and well casings; conditioned to pay the state on performance of work not in compliance with the chapter or rules; in lieu of other license bonds required by a political subdivision of the state); § 103I.531, subd. 5(b) (compensation of persons injured or suffering financial loss); § 103I.531, subd. 4 (issuance; a dewatering limited license may not be withheld for lack of prior experience under a licensed well contractor); § 103I.531, subd. 6 (license fee of $100; $275 for three or more limited licenses).
Bond amount
Set by the scope of the limited license rather than by the size of the job, from one paragraph. $10,000 for sealing wells and borings, for constructing, repairing and sealing dewatering wells, and for constructing, repairing and sealing bored geothermal heat exchangers. $2,000 for installing, repairing and modifying well pumps and pumping equipment, well screens, pitless units and pitless adaptors, and well casings from the pitless adaptor or pitless unit to the upper termination of the well casing.
How to get it
This bond is individually underwritten, so it is not issued instantly. Request a quote and a licensed producer follows up to walk you through it.
Request a bond quote
Tell us about the bond and the project. A licensed producer follows up — these bonds are individually underwritten, so they are not issued instantly.
Term & renewal
Term: Held as a condition of the limited well/boring contractor’s license and approved by the commissioner of health, conditioned to pay the state on work performed in Minnesota that does not comply with the well and boring chapter or its rules.
Renewal: Runs with the license; a contractor holding several limited licenses posts the bond that matches each scope, and the department discounts the license fee at three or more.
Filing
Submitted to the commissioner of health with the license application and approved by the commissioner. Both figures are stated as fixed sums rather than as floors, and no cash, certificate of deposit or letter of credit alternative appears anywhere in the chapter, so both render. Corporate surety is required in terms. The bond is conditioned to pay the state where work is not in compliance with the chapter or rules, and the commissioner may then compensate persons injured or suffering financial loss out of the proceeds. Both bonds stand in lieu of other license bonds a political subdivision requires. The license fee is modest and is discounted where a contractor holds three or more limited licenses, so the bond rather than the fee is the real cost of adding a scope.
Source
Verified against the obligee source (last checked 2026-09-07).
Related Minnesota bonds
Frequently asked questions
- Who requires the Minnesota Limited Well/Boring Contractor Bond?
- It’s required by Minnesota Department of Health (Well Management Section) (Minn. Stat. § 103I.531, subd. 5(a) (bond — a corporate surety bond for $10,000 approved by the commissioner as a condition of a limited well/boring contractor’s license for sealing wells and borings, constructing, repairing and sealing dewatering wells, or constructing, repairing and sealing bored geothermal heat exchangers; a corporate surety bond for $2,000 for installing, repairing and modifying well pumps and pumping equipment, well screens, pitless units and pitless adaptors, and well casings; conditioned to pay the state on performance of work not in compliance with the chapter or rules; in lieu of other license bonds required by a political subdivision of the state); § 103I.531, subd. 5(b) (compensation of persons injured or suffering financial loss); § 103I.531, subd. 4 (issuance; a dewatering limited license may not be withheld for lack of prior experience under a licensed well contractor); § 103I.531, subd. 6 (license fee of $100; $275 for three or more limited licenses)). Contractors licensed at the limited level under the well and boring chapter — the tier below the full well contractor. Read the scope table before pricing, because the two figures are five times apart and the dividing line is not obvious from a company’s name. The higher sum covers sealing wells and borings, dewatering wells, and bored geothermal heat exchangers — which is the line that matters most to the geothermal trade, since a ground-loop borehole is a boring under this chapter and the contractor drilling it is licensed and bonded here rather than under any mechanical credential. The lower sum covers pump and pumping equipment work, well screens, pitless units and adaptors, and casing from the pitless adaptor up to the top of the casing, which is the service-and-repair half of the trade. A contractor doing both holds both licenses. One drafting detail favors new entrants: the commissioner may not withhold a dewatering limited license for want of prior experience under a licensed well contractor, which is the only such provision in the family.
- How much is the Minnesota Limited Well/Boring Contractor Bond?
- Set by the scope of the limited license rather than by the size of the job, from one paragraph. $10,000 for sealing wells and borings, for constructing, repairing and sealing dewatering wells, and for constructing, repairing and sealing bored geothermal heat exchangers. $2,000 for installing, repairing and modifying well pumps and pumping equipment, well screens, pitless units and pitless adaptors, and well casings from the pitless adaptor or pitless unit to the upper termination of the well casing.
- How do I get the Minnesota Limited Well/Boring Contractor Bond?
- This bond is individually underwritten, so it is not issued instantly. Request a quote and a licensed producer follows up to walk you through it.
- What is the term?
- Held as a condition of the limited well/boring contractor’s license and approved by the commissioner of health, conditioned to pay the state on work performed in Minnesota that does not comply with the well and boring chapter or its rules. Renewal: Runs with the license; a contractor holding several limited licenses posts the bond that matches each scope, and the department discounts the license fee at three or more.
- Is this bond insurance for me?
- No. It protects the obligee and the public — not you. If a valid claim is paid, you repay the surety.
- How is this requirement verified?
- We verify it against the obligee’s primary source (last checked 2026-09-07); the source link is on this page.
