• February 21, 2019

How to Obtain a Minnesota Subsurface Sewage Treatment System Bond

How to Obtain a Minnesota Subsurface Sewage Treatment System Bond

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Any person who is seeking a Subsurface Sewage Treatment System (SSTS) license in Minnesota must procure an applicable surety bond, according to the Minnesota Pollution Control Agency (MPCA). If you are looking to open an SSTS business in the state of Minnesota, here is what you need to know about the surety bond process?

What is a Surety Bond?

A surety bond is a form of insurance that, unlike commercial insurance, involves three parties: the oblige, the principal, and the surety. In the case if SSTS businesses, the customer would be the oblige while the business would be the principal. A surety bond guarantees that the surety will provide recompense should the principal fail to meet the obligations of their contract with the oblige (customer).

It is the responsibility of the SSTS business (principal) to purchase the surety bond, which is a requirement for their license. This applies to any business that conducts SSTS design, installation, repair, maintenance, operation or inspection of either residential or commercial septic systems. You must keep this bond on file with the MPCA.

Learn more about SSTS bonds here.

Who Do Surety Bonds Protect?

The surety bond you procure protects both your customers and your SSTS business. Surety bonds are useful in resolving conflicts between contractors and their customers. They also protect your business from baseless claims because a customer will have to go through a claims process with the surety, who acts as an independent entity, in order to prove that you have not fulfilled your part of the contract.

How to Obtain a Minnesota Surety Bond

The process of obtaining any surety bond in Minnesota involves purchasing one from a recognized surety. The process begins simply but can quickly become complicated. It’s easy to make mistakes, overpay or be denied a bond if you do not provide the right information about your business.

To simplify the process, it’s best to work with a surety bond agency. The qualified agents at the right agency will help you through the process, tell you what you need to provide for a bond, and help you get approved in less time. This will allow you to get your license and get to work in Minnesota more quickly.

Disclaimer: this is for informational purposes only and is not intended to be legal advice. If you need legal counsel, please contact an attorney directly.

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