$10,000 Minnesota Protective Agent for Fee Bond

Businesses are required to file a $10,000.00 bond with the State of Minnesota Board of Private Detectives and Protective Agent Services (the "Obligee") to activate their license. The bond protects the Obligee by transferring to a surety bond company the cost of ensuring the public is compensated for damages resulting from a licensed business breaking licensing laws.

Protective Agent for Fee Bond

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How much does the Minnesota Protective Agent for Fee bond cost?

Minnesota Protective Agent for Fee bonds typically cost $100.

Is a Credit Check Required for Minnesota Protective Agent for Fee Bonds?

Credit checks are not required for the Minnesota Protective Agent for Fee Bond.

Why is the Minnesota Protective Agent for Fee bond required?

Businesses are required to purchase and file a $10,000 bond with the State of Minnesota Board of Private Detectives and Protective Agent Services to activate their license. The bond protects the Obligee by transferring to a surety bond company the cost of ensuring the public is compensated for damages resulting from the failure of a licensed business complying with the provisions of licensing laws.

How does the Minnesota Protective Agent for Fee bond work?

Minnesota Protective Agent for Fee bonds must be issued by an insurance carrier admitted by the Minnesota Department of Insurance. The insurance company issuing any surety bond, such as the Minnesota Protective Agent for Fee bond, will also be referred to as the "surety company" or the "bond company". The business is referred to as the Principal, the surety bond company as the Obligor and the State of Minnesota Board of Private Detectives and Protective Agent Services as the Obligee.

The surety company provides the Obligee a guarantee (the surety bond) that the customers, vendors and employees of a licensed business will receive payment for financial damages due to a violation of licensing law up the bond amount stated on the bond form ("penal sum"). The bond company also directly receives claims from the public and determines the validity of claims. Ultimately, the licensed business owners are responsible for their actions and required by law to reimburse the surety company for any payments made under the bond or face indefinite license suspension.