Contractors Insurance in Minnesota

Contractor licensing in Minnesota is broken up over several different agencies. Residential roofers, remodelers, and builders must be licensed if gross receipts equal at least $15,000.00. Contractors needing licensing information should visit the MN Department of Labor and Industry website. Plumbers are licensed by the Minnesota Department of Health, electricians by the Board of Electricity. HVAC contractors are licensed at the local level. Specialty contractors who do not fall in the above-mentioned categories are not required to be licensed by the state but should check with their local jurisdiction.

Minnesota requires all businesses who have one or more employees must carry workers’ compensation insurance, which includes non-citizens and minors. The exceptions allowed are: Sole proprietors, partners, some managers of LLCs, officers of closely held corporations and certain relatives are excluded from compulsory coverage, but may choose to be included in their policy. Employers covered by federal liability laws are exempt, and so are family farm operations, with some restrictions.

Minnesota workers’ compensation insurance can be purchased from any commercial carrier that offers workers’ comp and is licensed in Minnesota.

Protect Your Business with Contractors Insurance from Fairbanks Insurance

It’s critical that all contractors operating in the state of Minnesota understand that whether you are operating as a licensed contractor or subcontractor, there certain risks that your business will be exposed to day in and day out.

Here is What We Recommend:

General Liability

Your contractor’s general liability policy provides a package of coverages that will protect your company if you are found liable in a legal action. You can take advantage of these coverages with a very affordable premium:

  • Bodily Injury Liability and Property Damage Liability
  • Contractual Liability
  • Products Completed Operations
  • Defense Costs

Workers' Comp

The state of Minnesota department of labor requires that all employers with employees carry workers’ compensation insurance. Sole proprietors and partnership wages paid to any owners or the owners’ family, do not count toward the total payroll. Contractors should keep in mind, however, that they are liable for medical expenses of any employee or uninsured subcontractors who may hurt on the job unless they have a workers’ compensation policy in force.

Commercial Auto

Since personal auto policies typically exclude business vehicles from coverage and do not offer limits high enough to protect your business, every business with business vehicles and trailers should have a commercial auto policy in place. Generally there is no limit on the number of vehicles or drivers to be covered and most carriers will offer limits up to $3 million.

Tool Coverage

The best method to protect tools and equipment in storage, in transit, or at the jobsite is by transferring your risk of damage and theft of tools and equipment to a highly rated insurance company. Fairbanks Insurance Brokers represent multiple insurance companies that will provide tool and equipment coverage at a very affordable price.

Surety Bonds

In most cases, a surety bond is required by licensing boards, commercial customers, and government organizations that you do business with. It’s important to understand that a surety bond is not insurance but similar to a line of credit that is available if because of your business operation, a customer must redeem it. It’s important to note that if a surety bond is redeemed by your customer, the funds will have to be repaid to the bonding company.

Fairbanks Insurance Brokers is a leader in providing contractors insurance and is dedicated to providing Contractors and Builders the finest insurance protection at the lowest rates throughout the construction community.

With savings up to 65% on General Liability, Workers’ Compensation, Commercial Auto and Bonds, you can count on us to do the heavy lifting and provide you the most competitive quote that includes all the discounts for which you qualify.


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