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.
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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.
The minimum requirement for Iowa money transmitters is $50,000, with an additional $10,000 for each extra location that you want to operate. The highest possible bond amount is $300,000.
Questions about Surety Bonds in Iowa
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.
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
| Contractor License (No P&P Language) Bond | City of Bettendorf Contractor License Bond | City of Bettendorf, Building Inspection Services | Apply Now |
| Contractor License Performance & Payment (Local) Bond | License and Permit Bond (Davenport, IA) | City of Davenport, Iowa | Apply Now |
| Contractor License Performance & Payment (Local) Bond | General Contractor Bond (Fort Dodge, IA) | City of Fort Dodge, IA; City Treasurer's Office | Apply Now |
| Contractor License Performance & Payment (Local) Bond | Right of Way Permit Bond (Fort Dodge, IA) | City Treasurer's Office | Apply Now |
| Contractor License Performance & Payment (State) Bond | Division of Labor Out of State Contractor | Iowa division of labor contractor registration | Apply Now |
| Contractor License Performance & Payment (State) Bond | Contractor License Performance & Payment (State) B | Iowa Division of Labor | Apply Now |
| Contractor License Performance & Payment (State) Bond | Commercial Refrigeration Bond | Plumbing & Mechanical Systems Board | Apply Now |
| Debt Consolidators Bond | Credit Services Organization | Secretary of State | Apply Now |
| Insurance Adjusters Bond | Insurance Adjuster Bond | Iowa Insurance Division | Apply Now |
| Insurance 3rd Party Administrator Bond | Third Party Administrator | Insurance Division | Apply Now |
| Mortgage Broker (1st & 2nd Mortgages) Bond | Mortgage Surety | Superintendent of Banking, Dept of Commerce | Apply Now |
| Mortgage Broker (1st & 2nd Mortgages) Bond | Mortgage Broker | Superintendent of Banking, Dept of Commerce | Apply Now |
| Mortgage Broker (1st & 2nd Mortgages) Bond | REGULATED LOAN LICENSE (IOWA) | Superintendent of Banking | Apply Now |
| Mortgage Lender/Banker (1st & 2nd Mort.) Bond | Mortgage Banker | Superintendant of Banking, Iowa Dept of Commerce | Apply Now |
| Title Insurance Agents & Escrow Officers Bond | Closing Agent | Superintendent of Banking Iowa Department | Apply Now |
| Auto & Mobile Home Dealers (New & Used) Bond | Motor Vehicle Dealer | Department of Transportation | Apply Now |
| Auto & Mobile Home Dealers (Used Only, No New) Bond | Motor Vehicle Dealer | Department of Transportation | Apply Now |
| Sport Permits Bond | Athletic Commissioner Boxing/Wrestling/Mixed Marti | State of Iowa Athletic Commission Iowa Division of | Apply Now |
| Detectives Bond | Detectives Bond | Iowa Department of Public Safety | Apply Now |
| Employment Agencies Bond | Employment Agency Bond | Workforce Developmetn Division of Labor Services | Apply Now |
| Professional Licenses (All Other) Bond | Purchase of Timber from Timber Growers by a Timber | DNR - FORESTRY BUREAU | Apply Now |
| Professional Licenses (All Other) Bond | Licensed Service Company's Bond | Insurance Commissioner of Iowa | Apply Now |
| Schools (All) Bond | Instructional School | State of Iowa | Apply Now |
| Travel Agencies Bond | TRAVEL AGENCY BOND FORM | Secretary of State | Apply Now |
| Alcohol (Retailers) Bond | Commerical Liquor License | Iowa Alcohlic Beverages division | Apply Now |
| Utility Deposit Bond | Alliant Energy Utiltiy Bond | Alliant Energy | Apply Now |
| Money Transmitter Bond | Money Transmitter Bond | State of Iowa | Apply Now |
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