Minnesota Well Contractor Bond
What it is & who requires it
Contractors licensed by the Department of Health to construct, repair and seal wells and borings in Minnesota. This is the anchor of a four-license family and the largest sum in it — the state licenses well work at four levels and bonds every one of them, which is not the pattern in most of its neighbors. The bond is drawn to compliance rather than to contract: it is conditioned to pay the state where work is not in compliance with the chapter or the rules, and the commissioner may then compensate persons injured or suffering financial loss out of the proceeds, so the state stands between the claimant and the surety rather than beside them. Two boundaries are worth knowing. This license and bond carry their own exemption from the plumbing sections for designing and installing the work the plumbing chapter describes, so a licensed and bonded well contractor is not also asked for a plumbing license or a plumbing bond for that scope. And the bond stands in lieu of other license bonds a political subdivision requires, so a city may not bond the same trade twice.
Obligee: Minnesota Department of Health (Well Management Section). Citation: Minn. Stat. § 103I.525, subd. 5(a) (bond — as a condition of being issued a well contractor’s license, the applicant must submit a corporate surety bond for $25,000 approved by the commissioner, conditioned to pay the state on performance of work in this state that is not in compliance with the chapter or rules adopted under it; the bond is in lieu of other license bonds required by a political subdivision of the state); § 103I.525, subd. 5(b) (the commissioner may compensate persons injured or suffering financial loss from the proceeds); § 103I.525, subd. 4 (issuance on employing a certified representative, submitting the bond and paying the fee); § 103I.525, subd. 6 (license fee of $300); Minn. Stat. § 103I.501 (licensing and regulation of wells and borings); Minn. Stat. § 326B.46, subd. 6 (a well contractor licensed and bonded under § 103I.525 needs no license, registration or bond under the plumbing sections for the work described there).
Bond amount
The required bond amount is $25,000.
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 well 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; the bond must be on file and approved for the license to issue and to remain in force.
Filing
Submitted to the commissioner of health with the license application and approved by the commissioner. The statute states a fixed sum — a corporate surety bond FOR the amount, not a bond of at least that amount — and offers no cash, certificate of deposit or letter of credit alternative anywhere in the chapter, which is why the figure renders without the qualification the labor and industry bonds carry. Corporate surety is required in terms. The license also requires the contractor to employ a certified representative, and the license fee is charged separately from the bond. Note for anyone comparing this family: the three sibling licenses in the same chapter carry smaller sums on the same conditions, and three of the four subdivisions carry the political-subdivision displacement clause while the elevator boring subdivision does not.
Source
Verified against the obligee source (last checked 2026-09-07).
Related Minnesota bonds
Frequently asked questions
- Who requires the Minnesota Well Contractor Bond?
- It’s required by Minnesota Department of Health (Well Management Section) (Minn. Stat. § 103I.525, subd. 5(a) (bond — as a condition of being issued a well contractor’s license, the applicant must submit a corporate surety bond for $25,000 approved by the commissioner, conditioned to pay the state on performance of work in this state that is not in compliance with the chapter or rules adopted under it; the bond is in lieu of other license bonds required by a political subdivision of the state); § 103I.525, subd. 5(b) (the commissioner may compensate persons injured or suffering financial loss from the proceeds); § 103I.525, subd. 4 (issuance on employing a certified representative, submitting the bond and paying the fee); § 103I.525, subd. 6 (license fee of $300); Minn. Stat. § 103I.501 (licensing and regulation of wells and borings); Minn. Stat. § 326B.46, subd. 6 (a well contractor licensed and bonded under § 103I.525 needs no license, registration or bond under the plumbing sections for the work described there)). Contractors licensed by the Department of Health to construct, repair and seal wells and borings in Minnesota. This is the anchor of a four-license family and the largest sum in it — the state licenses well work at four levels and bonds every one of them, which is not the pattern in most of its neighbors. The bond is drawn to compliance rather than to contract: it is conditioned to pay the state where work is not in compliance with the chapter or the rules, and the commissioner may then compensate persons injured or suffering financial loss out of the proceeds, so the state stands between the claimant and the surety rather than beside them. Two boundaries are worth knowing. This license and bond carry their own exemption from the plumbing sections for designing and installing the work the plumbing chapter describes, so a licensed and bonded well contractor is not also asked for a plumbing license or a plumbing bond for that scope. And the bond stands in lieu of other license bonds a political subdivision requires, so a city may not bond the same trade twice.
- How much is the Minnesota Well Contractor Bond?
- The bond amount is $25,000.
- How do I get the Minnesota Well 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 well 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; the bond must be on file and approved for the license to issue and to remain in force.
- 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.
