What Is an Iowa Surety Bond?
Just like in all other US states, many businesses and individuals need to post an Iowa surety bond, so that they can operate in legal compliance.
State and local authorities require surety bonds with the purpose of protecting the state and the general public from fraudulent activities. An Iowa surety bond works like a contractual agreement between three entities. The obligee is the authority that imposes the bond requirement. The party that has to get bonded is the principal, and the surety is the bond underwriter.
The most common types of Iowa surety bonds that you might encounter include:
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License bonds are required from individuals and businesses that want to obtain a professional license, such as mortgage brokers, car dealers and freight brokers. The bond guarantees they will follow state regulations.
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Contract bonds are needed when construction contractors want to participate in private or public projects. Their purpose is to ensure the timely and quality performance of the work, thus safeguarding the project owner’s interests.
- Court bonds might be required by an Iowa court in certain situations. These include if you are appointed as a fiduciary of another person’s assets or if you wish to appeal a judgment to an appellate court.
You can start your bonding process by identifying the type of Iowa surety bond that you need in the list of most common bonds below. The full set of bonds in Iowa are available at the end of the page.
Having trouble finding the bond you need? Don’t hesitate to call us at (877) 514-5146.
Most Popular Surety Bonds in Iowa
New and used auto dealers in Iowa are asked to obtain a $50,000 motor vehicle dealer bond, so that they can get licensed.
If you’d like to run a mortgage brokerage in Iowa, you’ll need to post a $100,000 mortgage broker bond.
If you are an out-of-state contractor who wants to operate in Iowa, you will be required to post a $25,000 contractor license bond.
If you need to obtain a Class E liquor license bond in Iowa, you will need to get a liquor license bond in the amount between $5,000 and $15,000, as decided by the Alcoholic Beverage Division.
If you wish to operate as an insurance adjuster in Iowa, you will need a $20,000 public adjuster bond.
If you’d like to deal with cigarette and tobacco products in Iowa, you will be asked to post a cigarette tax bond in the amount of $500 to $5,000, depending on your activity.
Frequently Asked Questions
How much does an Iowa surety bond cost?
The bond price, or the surety bond cost, that you will need to pay in order to get bonded in Iowa will largely depend on the surety bond amount that you are asked to post. Depending on the business you are running, this amount might be applicable for the whole country, for Iowa state, or only for your local area. In some cases, the bond amount is even determined individually for each case.
However your bond amount is set, your bond price will be only a fraction of it, called the bond premium. This means that you need to pay only a percentage in order to get bonded, which is usually between 1% and 4% if you qualify for standard bonding.
When you apply for a bond, your surety takes a close look at your personal and business finances. It considers your personal credit score, business stats and overall experience. This is how the surety assesses the risk of providing you with a bond. If your finances are stable, you can expect a lower bond premium. |
Can I get an Iowa surety bond with bad credit?
Even if your finances are far from perfect, there is a way to get bonded even with bad credit. Since we understand the hardships that bad credit applicants face, we operate our Bad Credit Program to assist them.
Under this program, the typical bond rates range between 5%-15%. The increased rate mitigates the risk of bonding applicants with low credit scores, liens, past bankruptcies or civil judgments.
Still, our clients benefit from our excellent bonding rates even with bad credit. Lance Surety Bonds fosters close relations with a number of A-rated, T-listed surety companies. This means we can select the top bonding option for your particular circumstances.
[question text="How to get bonded in Iowa?"] You can start your bonding process today with ease. Just apply online for your free Iowa surety bond quote, and you’ll receive a response in no time. Your exact bond cost will be available after you submit a full application.
Whether you need help with your application or have questions about bonding, you can always call us at (877) 514-5146. Lance Surety Bonds’ specialists will be happy to advise you.
For a complete guide to the bonding process, make sure to consult our How to Get Bonded page.
Find Your Iowa Surety Bond
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Contractor License (No P&P Language) BondCity of Bettendorf Contractor License BondCity of Bettendorf, Building Inspection Services
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Contractor License Performance & Payment (Local) BondLicense and Permit Bond (Davenport, IA)City of Davenport, Iowa
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Contractor License Performance & Payment (Local) BondGeneral Contractor Bond (Fort Dodge, IA)City of Fort Dodge, IA; City Treasurer's Office
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Contractor License Performance & Payment (Local) BondRight of Way Permit Bond (Fort Dodge, IA)City Treasurer's Office
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Contractor License Performance & Payment (State) BondDivision of Labor Out of State ContractorIowa division of labor contractor registration
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Contractor License Performance & Payment (State) BondContractor License Performance & Payment (State) BIowa Division of Labor
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Contractor License Performance & Payment (State) BondCommercial Refrigeration BondPlumbing & Mechanical Systems Board
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Debt Consolidators BondCredit Services OrganizationSecretary of State
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Insurance Adjusters BondInsurance Adjuster BondIowa Insurance Division
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Insurance 3rd Party Administrator BondThird Party AdministratorInsurance Division
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Mortgage Broker (1st & 2nd Mortgages) BondMortgage SuretySuperintendent of Banking, Dept of Commerce
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Mortgage Broker (1st & 2nd Mortgages) BondMortgage BrokerSuperintendent of Banking, Dept of Commerce
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Mortgage Broker (1st & 2nd Mortgages) BondREGULATED LOAN LICENSE (IOWA)Superintendent of Banking
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Mortgage Lender/Banker (1st & 2nd Mort.) BondMortgage BankerSuperintendant of Banking, Iowa Dept of Commerce
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Title Insurance Agents & Escrow Officers BondClosing AgentSuperintendent of Banking Iowa Department
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Auto & Mobile Home Dealers (New & Used) BondMotor Vehicle DealerDepartment of Transportation
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Auto & Mobile Home Dealers (Used Only, No New) BondMotor Vehicle DealerDepartment of Transportation
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Sport Permits BondAthletic Commissioner Boxing/Wrestling/Mixed MartiState of Iowa Athletic Commission Iowa Division of
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Detectives BondDetectives BondIowa Department of Public Safety
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Employment Agencies BondEmployment Agency BondWorkforce Developmetn Division of Labor Services
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Professional Licenses (All Other) BondPurchase of Timber from Timber Growers by a TimberDNR - FORESTRY BUREAU
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Professional Licenses (All Other) BondLicensed Service Company's BondInsurance Commissioner of Iowa
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Schools (All) BondInstructional SchoolState of Iowa
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Travel Agencies BondTRAVEL AGENCY BOND FORMSecretary of State
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Alcohol (Retailers) BondCommerical Liquor LicenseIowa Alcohlic Beverages division
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Utility Deposit BondAlliant Energy Utiltiy BondAlliant Energy
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Money Transmitter BondMoney Transmitter BondState of Iowa
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