Also known as an Iowa farm labor contractor bond, this specific type of surety bond is required of anyone who supplies farm labor to agricultural concerns in Iowa. State regulators require this surety bond, and it’s illegal to work without one.
The Iowa farm labor bond ensures that anyone hired by a farm labor contractor receives the compensation owed to them. If they aren’t paid as promised, they may file a claim against the bond, and as long as the claim is true, it’s guaranteed to be paid.
This type of surety bond, like all types, holds the bonded party (the farm labor contractor) accountable for unethical or illegal behavior. At the same time, it provides a path to justice (in the form of financial compensation) for anyone wronged by a farm labor contractor.
How does an Iowa Farm Labor Bond work?
If someone feels that the actions of a farm labor contractor are in violation of applicable state laws and codes of conduct, they may file a claim for damages against the farm labor bond. The surety that issues and backs the bond will launch an investigation to determine whether the claim has merit. Provided it does, the surety automatically settles the claim in full. In the final part of the process, the surety uses whatever legal means necessary to collect that amount of the claim, plus interest and fees, from the bonded party – eg. the party that accepts financial liability for all claims when they sign the surrey bond agreement. The surety will always render payment for valid claims, but they will never accept financial liability for those claims; that always rests on the farm labor contractor.
What is the purpose of an Iowa Farm Labor Bond?
Surety bonds help to regulate industries by discouraging negative behaviors. Since a farm labor contractor will be held liable for anything he does in conflict with state laws and ethics requirements, he has a financial incentive to follow all applicable rules. Surety bonds also provide a pathway for victims of malfescant farm labor contractors to seek justice and recover from their losses.
Who needs an Iowa Farm Labor Bond?
The rules vary, and it’s ultimately up to the State of Iowa to determine who needs a bond. That being said, anyone who works or plans to work as a farm labor contractor should expect to need one of these bonds. When necessary, the Iowa farm labor bond requirements will be quite clear. The state won’t authorize anyone to work as a farm labor contractor without a bond, therefore, it’s important to seek one out as soon as it’s required. Viking Bond Service can get you a quote in just 24 hours!
Who are the parties involved in an Iowa Farm Labor Bond?
The bonded party is one of three parties:
- Principal – The farm labor contractor who is required to get the bond and required to pay for all claims.
- Obligee – Anyone harmed by a farm labor contractor. The obligee has the right to file claims against the bond seeking damages.
- Surety – The company that issues the bond to the principal and settles claims with the obligee. When the surety settles, the principal must pay that debt back with interest and fees added on.
How to get an Iowa Farm Labor Bond?
It starts with an application process. You will complete a bond application, agree to a credit check, provide a copy of the bond requirements, and give the surety anything else it asks for. Underwriters will use that information to evaluate your credit risk and calculate a corresponding bond quote (typically a small percentage of the total bond amount). Bad credit results in higher bond costs – but it doesn’t have to result in denial thanks to a special program from Viking Bond Service. Once you pay the quoted price, the bond becomes active, and you receive a document proving you’ve met the Iowa farm labor bond requirements.
Why you should get your Iowa Farm Labor Bond from Viking Bond Service
Because we make it easy, affordable, fast, and straightforward. You don’t want bonding to be a bigger hassle than necessary, and you want to keep your costs as low as possible. We understand, and we can help. Let us show you how simple bonds can be. With Viking Bond Service, you’ve got a surety bond partner for all the bonds you need as long as you’re in business.
Get an Iowa Farm Labor Bond from Viking Bond Service
The sooner you get a surety bond, the sooner you can focus on something else. Request a quote from Viking Bond Service at any time 24/7. It costs you nothing and commits you to nothing, so don’t hesitate to explore what a surety bond might cost you. And don’t hesitate to get more information either. We are happy to answer your questions – contact us or call 1-888-278-7389.