Iowa Surety Bonds Overview
The state of Iowa frequently requires that applicants for a business or professional license obtain a surety bond during the licensing process. Construction contractors in the state also frequently need to get bonded, in particular when performing work on state or federal projects.
Why do I need a bond?
Surety bonds guarantee that the bonded party (the bond principal) will comply with the conditions of the bond agreement. These conditions typically require the principal to adhere to state laws that govern their type of business and generally to conduct business in an honest manner.
If the principal violates the bond agreement, the party that requires the bond and is protected by it (the bond obligee) may file a claim against the bond. Claims are usually filed when a loss or damages occur as a result of such a violation. In this case the bond serves as a guarantee that financial compensation will be extended to claimants.
You can learn more about surety bonds from our detailed ‘What is a surety bond’ guide!
If you are ready to apply for your bond, find it in the table below and follow the application link.
If you are in doubt about the type of bond you need, continue to the sections below for more information about the different types of surety bonds in Iowa, how much they cost, and how you can get yours.
Find the Bond You Need
The table below contains a list of only the most popular surety bonds. If you can't find yours, fill out our online application and select "Not in the list".
|Freight Broker Bond (BMC-84)||FMCSA||N/A||Apply Now|
|Contractor License (No P&P Language) Bond||City of Bettendorf, Building Inspection Services||City of Bettendorf Contractor License Bond||Apply Now|
|Contractor License Performance & Payment (Local) Bond||City of Davenport, Iowa||License and Permit Bond (Davenport, IA)||Apply Now|
|Contractor License Performance & Payment (Local) Bond||City of Fort Dodge, IA; City Treasurer's Office||General Contractor Bond (Fort Dodge, IA)||Apply Now|
|Contractor License Performance & Payment (Local) Bond||City Treasurer's Office||Right of Way Permit Bond (Fort Dodge, IA)||Apply Now|
|Contractor License Performance & Payment (State) Bond||Iowa division of labor contractor registration||Division of Labor Out of State Contractor||Apply Now|
|Contractor License Performance & Payment (State) Bond||Iowa Division of Labor||Contractor License Performance & Payment (State) B||Apply Now|
|Contractor License Performance & Payment (State) Bond||Plumbing & Mechanical Systems Board||Commercial Refrigeration Bond||Apply Now|
|Debt Consolidators Bond||Secretary of State||Credit Services Organization||Apply Now|
|Insurance Adjusters Bond||Iowa Insurance Division||Insurance Adjuster Bond||Apply Now|
|Insurance 3rd Party Administrator Bond||Insurance Division||Third Party Administrator||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Superintendent of Banking, Dept of Commerce||Mortgage Surety||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Superintendent of Banking, Dept of Commerce||Mortgage Broker||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Superintendent of Banking||REGULATED LOAN LICENSE (IOWA)||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Superintendant of Banking, Iowa Dept of Commerce||Mortgage Banker||Apply Now|
|Title Insurance Agents & Escrow Officers Bond||Superintendent of Banking Iowa Department||Closing Agent||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||Department of Transportation||Motor Vehicle Dealer||Apply Now|
|Auto & Mobile Home Dealers (Used Only, No New) Bond||Department of Transportation||Motor Vehicle Dealer||Apply Now|
|Sport Permits Bond||State of Iowa Athletic Commission Iowa Division of||Athletic Commissioner Boxing/Wrestling/Mixed Marti||Apply Now|
|Detectives Bond||Iowa Department of Public Safety||Detectives Bond||Apply Now|
|Employment Agencies Bond||Workforce Developmetn Division of Labor Services||Employment Agency Bond||Apply Now|
|Professional Licenses (All Other) Bond||DNR - FORESTRY BUREAU||Purchase of Timber from Timber Growers by a Timber||Apply Now|
|Professional Licenses (All Other) Bond||Insurance Commissioner of Iowa||Licensed Service Company's Bond||Apply Now|
|Schools (All) Bond||State of Iowa||Instructional School||Apply Now|
|Travel Agencies Bond||Secretary of State||TRAVEL AGENCY BOND FORM||Apply Now|
|Alcohol (Retailers) Bond||Iowa Alcohlic Beverages division||Commerical Liquor License||Apply Now|
|Utility Deposit Bond||Alliant Energy||Alliant Energy Utiltiy Bond||Apply Now|
|Money Transmitter Bond||State of Iowa||Money Transmitter Bond||Apply Now|
Types of Surety Bonds
The type of bond you require depends on what you need it for:
For business licensing purposes, you will need to get a license and permit bond
For construction-related purposes, such as participating in a bid or performing on a project, you will need a contract bond
To appeal a court ruling or if you will be appointed as someone’s fiduciary or guardian, you will need a court bond
License & Permit Bonds
License and permit bonds are relevant for those businesses that are required by state regulations to get bonded when getting licensed. They guarantee that Iowa businesses that are licensed and bonded will adhere to Iowa state and industry regulations for their license. This means that they will only conduct business lawfully and legally.
License bonds protect bond obligees (the state and clients) by securing compensation for them, should a business act dishonestly, commit fraud or else.
Contract bonds, such as performance and payment bonds, are required of contractors. Licensed and bonded Iowa contractors must obtain these bonds when they decide to bid on or participate on a construction project.
Usually these bonds are required for state or federal construction projects but many private construction project owners will also have a surety bond requirement for the contractors they hire. The point of contract bonds is to protect the obligees, which are the owners or the state, against contractor malpractices and bad performance.
Court bonds are often required of individuals by a variety of Iowa courts, depending on each particular case. They are relevant for instances when court judgements are being appealed or fiduciaries are being appointed.
If you have any questions about these types of bonds, give us a call at (866) 450-3412!
What is The Cost of a Bond in Iowa
The cost - or premium - of your surety bond is derived from the amount of your surety bond as well as by your own financial standing. A surety bond’s amount or penal sum is the amount of coverage that it provides to the ones it protects - the obligees. A bond’s obligees are usually the public (the state) or individual consumers. Your surety bond's cost is, in most cases, a percentage of that amount.
How is my bond premium determined?
To determine the appropriate amount of an applicant’s premium, sureties assess the applicant’s financial status. The most important indicator which they consider in doing so is personal credit score. To get a fuller picture, sureties may also want to review your:
- Personal financial statements
- Business financial statements
- Industry experience and knowledge
- Business and its health
If a surety deems an applicant reliable, based on their credit score and other factors, they will usually offer them a premium that is between 1%-4% of the total bond amount. This is called a standard market rate and it is usually offered to applicants with high credit scores.
Can I get bonded if I have a low credit score?
Applicants with low, bad, or no credit altogether can also apply for a bond and be approved. Rates for such applicants are higher, usually 5%-15% of the total amount, because of the greater risk that sureties take on in bonding bad credit applicants. Yet, by improving your credit score over time, you can become eligible for standard market rates.
If you’re curious how much your bond may cost, try our surety bond cost calculator below to get an estimate.
Surety Bond Cost Calculator
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If you find you need more information about premiums, our Surety Bond Cost page has plenty of useful information.
How to Get Bonded in Iowa
To apply for your bond, you simply need to complete the initial bond application form after which we’ll get in touch with you to provide you with a free quote, and more information about getting bonded.
License bond application
To get started with your license bond application, complete our 1-page online bond form.
Contract Bond Application
If you require a contract bond, please complete the correct online application form. We will get in touch with you shortly with more details on your bond.
Do you require any assistance with your application or more information about the bonding requirements in Iowa? Don’t hesitate to call us at (866)-450-3412!