Iowa Surety Bond
Iowa surety bonds are required by many municipalities, as well as state agencies. Apply for an Iowa Surety Bond today! Absolute Surety is a leading Iowa surety bond company. Apply easily online and take advantage of lowest rates. If you do not see the exact bond type you need, please contact us or complete a miscellaneous application.
Surety Bonds Required In Iowa
There are three broad categories of mandatory bonds in Iowa:
- License & Permit Bonds are required for certain individuals and companies applying for or renewing a license to operate within the state of Iowa.
- Contractor Bonds are required in certain cities and municipalities for a contractor to bid or work on public construction projects.
- Court Bonds may be required for those appealing a court decision and in cases involving fiduciary responsibility.
Iowa License & Permit Bonds
License and permit bonds are typically a statewide requirement imposed by a state agency, such as the:
- Iowa Insurance Division, which requires a $20,000 surety bond as part of the process of becoming licensed as a public adjuster.
- Iowa Alcoholic Beverage Division, which requires liquor stores and grocery and convenience stores applying for a Class E liquor license to obtain a bond in an amount from $5,000 to $15,000 (depending on the type of business). The bond is meant to guarantee payment of all applicable taxes and fees.
- Iowa Department of Transportation, which requires car dealers to obtain a motor vehicle dealer bond in the amount of $75,000 in order to be licensed to do business in the state of Iowa.
- Iowa Superintendent of Banking, which requires a surety bond for licensure as a closing agent, loan company, money transmitter, or mortgage banker or broker. The bond amount required depends on the specific type of license.
Iowa agencies require license and permit bonds as a way of guaranteeing that licensees will comply with all relevant state regulations. Use our search tool to find any bond(s) that you may be required to obtain to operate your business in the state of Iowa.
Contractor Bonds In Iowa
Some Iowa cities and municipalities require contractors to obtain a contractor bond in addition to a license and permit bond. Certain cities or municipalities require contractors to obtain a bid bond, performance bond, payment bond, maintenance bond, and/or supply bond in order to bid, win, or work on public construction projects.
Iowa Court Bonds
Iowa courts may require surety bonds from people who are appealing a court decision or acting in a fiduciary capacity. For example, bonds are required for those who are acting as the executor of an estate, guardian of a minor, custodian of an incompetent adult, or bankruptcy trustee.
Surety Bond Costs
The cost of a surety bond depends on two key factors: the bond amount and the premium rate, which can be as little as 1% – 3% for applicants with good credit or as high as 15% for those with bad credit. The cost of the bond is determined by multiplying the bond amount by the premium rate.