Subpart 1.
Insurance.
A fire protection contractor shall have a general liability
insurance policy meeting the following requirements:
A. The policy must include products and
completed operations coverage.
B.
The limits of insurance coverage of the policy must be at least $250,000 per
person and $500,000 per occurrence and property damage insurance with limits of
at least $100,000.
C. The policy
must be conditioned to pay, on behalf of the insured, those amounts that the
insured is legally obligated to pay as damages because of bodily injury and
property damage caused by an occurrence involving the insured or the insured's
servant, officer, agent, or employee in the performance of fire
protection-related work.
D. The
term of the policy must be concurrent with the term of the license.
E. The policy must be executed by an insurer
authorized to do business in Minnesota and countersigned by an insurance agent
licensed in Minnesota.
F. The
policy must contain a stipulation that the insurance may not be canceled,
terminated, or changed in a way so that it no longer meets the requirements of
this subpart, except upon 30 days' prior written notice to the
commissioner.
Subp. 2.
Bond.
A contractor must have a bond meeting the following
requirements:
A. The bond must be for
the total penal sum of $30,000 conditioned upon the faithful and lawful
performance of all work entered upon within the state.
B. The bond must be for the benefit of
persons injured or suffering financial loss by reason of failure of
performance.
C. The term of the
bond must be concurrent with the term of the license.
D. The bond must be written by a corporate
surety licensed to do business in the state, be a cash bond, or be an
irrevocable line of credit.
E. The
bond must contain a stipulation that the bond may not be canceled, terminated,
or changed in a way so that it no longer meets the requirements of this
subpart, except upon 30 days' prior written notice to the
commissioner.
Subp. 3.
Failure to have insurance or bond.
Except as provided in subpart
4, a fire protection
contractor shall not perform fire protection-related work if the contractor
does not have insurance meeting the requirements of subpart
1 and a bond meeting the
requirements of subpart
2.
Subp. 4.
Exceptions to insurance or
bond requirements.
A fire protection contractor may, without the insurance or
bond required by this part, perform fire protection-related work on premises or
that part of premises actually occupied by the contractor and owned by the
contractor or leased by the contractor for a period of at least one
year.
