{"id":595,"date":"2019-01-08T01:26:57","date_gmt":"2019-01-08T01:26:57","guid":{"rendered":"https:\/\/www.performancesuretybonds.com\/blog\/?p=595"},"modified":"2022-01-24T16:04:27","modified_gmt":"2022-01-24T16:04:27","slug":"whats-brewing-iowa-new-brewers-bond-requirements","status":"publish","type":"post","link":"https:\/\/www.performancesuretybonds.com\/blog\/whats-brewing-iowa-new-brewers-bond-requirements\/","title":{"rendered":"What\u2019s Brewing in Iowa? New Brewer\u2019s Bond Requirements"},"content":{"rendered":"

In September of 2018, the state of Iowa enacted new surety bond requirements for those looking to craft and sell alcohol in the state. This change primarily affects \u201cClass A\u201d and \u201cSpecial Class A\u201d beer and wine permit holders in the state. If you\u2019re in the craft beer, wine, or liquor business, you may want to familiarize yourself with these new rules. In this post, we\u2019ll take a general look at these changes, so that you can make sure you\u2019re well equipped to follow the alcohol regulations of the state.<\/p>\n

Who Do These New Requirements Apply To?<\/strong><\/h2>\n

Though these license bonds are commonly known as \u201cbrewer\u2019s bonds\u201d they affect fans of other forms of fermentation as well. Along with beer permit holders and brew pub owners, these rules apply to \u201cClass A\u201d wine permit holders and direct wine shippers. In addition, \u201cClass E\u201d liquor control license holders will have to post a bond as well. The requirements vary for each license\u2014we\u2019ll explore the specific requirements later in this post. Whether it\u2019s beer, wine, or liquor you\u2019re crafting or distributing, these bonds can play an important role in the licensing process.<\/p>\n

There are three parties involved in any surety bond. First, the obligee<\/strong> is the entity that requires the bond. In this case, it\u2019s the state of Iowa. They require this bond in order to serve the interests of their constituents. Next, the principal<\/strong> is the one who requires surety bond coverage. That\u2019s you, the brewer, in this case. Finally, the surety<\/strong> serves as the underwriter of the brewer\u2019s bond. In the event of a claim against the principal, the surety can step in to help settle it.<\/p>\n

Why Does Iowa Require These Bonds?<\/strong><\/h2>\n

Brewer\u2019s bonds are used as a way to ensure compliance with rules and regulations relating to creating and selling alcoholic beverages. In the event that a permit holder fails to meet these requirements, a claim can be made against their bond. Having a surety bond in place is a way to guarantee that claimants will be financially compensated in such an event. Though the surety that provides the bond can step in and provide compensation, it\u2019s then the responsibility of the bonded party to reimburse the surety. All in all, these brewers bonds help to give the governing bodies in Iowa peace-of-mind when it comes to their constituents buying and selling alcohol.<\/p>\n

What Are the Iowa Brewer\u2019s Bond Requirements?<\/strong><\/h2>\n

The new bond requirements are as follows:<\/p>\n