Effective immediately a Minnesota Elevator Contractor Bond will be required from both full and limited licensees. According to the Minnesota Department of Labor’s open letter, “The changes became effective July 1, 2013. Elevator contractors and elevator constructors are currently licensed under sections 326B.31 to 326B.399 that make up the Minnesota Electrical Act. The change in 2013 Session Law Chapter 85 results in the elevator license requirements to be relocated to sections 326B.163 to 326B.191 relating to elevators. In addition to being relocated, the changes include elevator licenses to be based on elevator technology and not electrical technology. The major portion of an elevator installation is based on elevator technology and elevator code and a minor portion on the electrical code, being the main justification for the change. Aside from being based on elevator technology, the licensing requirements will follow the same basic licensing model that is found in the Minnesota Electrical Act.” “Elevator contractor” means a licensed contractor whose responsible licensed individual is a master elevator constructor, and is subject to the Minnesota elevator contractor bond requirement even if licensed before passage of the law. Pursuant to Subdivision 7, as a condition of licensing, each contractor shall give and maintain a surety bond to the state in the sum of twenty five thousand dollars, conditioned upon the faithful and lawful performance of all work contracted for or performed by the contractor within the state of Minnesota, and such bond shall be for the benefit of persons injured or suffering financial loss by reason of failure of such performance. The surety bond shall be filed with the commissioner and shall be in lieu of all other license bonds to any other political subdivision. The Minnesota elevator contractor bond shall be written by a corporate surety licensed to do business in the State. Further, a new obligation in the sum of $25,000.00 for each biennial license period for which the contractor is licensed is required. The bond form states that the aggregate liability for the Surety to all persons for any one biennial license period shall in no event exceed the sum of $25,000.00, so there appears to be a cumulative liability issue each two years. There is no cancellation provision written in to the state’s bond form.
Minnesota surety leader, Surety One, Inc. focuses on supporting the bonding needs of the construction and commercial contracting industries. We offer this class of surety bond to all applicants in every state where contractors must be bonded. Visit SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email Underwriting@SuretyOne.com for a Minnesota elevator contractor bond application or information about any surety need.
