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Iowa Contractors License Bond

Before you can get an Iowa contractors license, you need to get a special type of surety bond called and Iowa contractor license bond. This guide explains everything you need to know.

What is an Iowa Contractors License Bond?

A contractors license bond holds contractors accountable for actions that are illegal or unethical. When a contractor does something that results in damages for the person/company that hired them, that party may file a claim against the surety bond seeking financial compensation equal to their loss.

The surety company that issues and backs the bond will investigate the claim. Provided that the details prove valid, the surety will automatically settle the claim in full, guaranteeing payment for people wronged by a contractor. The bonded contractors must then pay the surety back the full amount of the claim plus interest and fees. Financial liability for claims always belongs to the contractor.

Why Do I Need an Iowa Contractor License Bond?

Iowa requires contractors to have one of these surety bonds to encourage contractors to follow state laws and codes of conduct. Since bonds hold the bonded party (eg. the contractor) financially liable for their misbehavior, they create an incentive to avoid claims and to run an upstanding business. Bonds also create a means for people harmed by contractors to recoup their losses.

What Do Contractor License Bonds Protect Against?

Almost all states require contractors to get some kind of surety bond before they can receive a professional license. That's because surety bond requirements effectively protect against behavior that could hurt the public at large - everything from shoddy workmanship to substandard building materials. States use license bonds to regulate the construction industry and ensure that construction work meets standards for quality and consistency.

How Much Does an Iowa Contractors License Bond Cost?

The cost of the bond varies depending on the applicant. The bond premium (the official term for the bond cost) is a small percentage of the bond total, or the maximum amount the bond will pay to settle claims. The exact percentage of the total depends on the applicant's credit. People with bad credit are seen as higher risk and will pay a higher premium as a result. However, they won't necessarily be denied a bond - at least not if they apply for one with Viking Bond Service.

How to Get a Contractor License Bond in Iowa

The application process involves very little: Complete a bond application, agree to a credit check, and turn over any other documents the surety requests. The surety will then quote you a price for the bond based on the information in your application. After you pay the premium, the bond becomes active, and you receive a document proving you have a bond that meets the Iowa contractor license bond requirements.

How To Renew An Existing Iowa Contractor License Bond

Iowa contractor bonds need to be renewed every 12 months. Failure to maintain an active bond will invalidate a contractor license and make any contracting work performed illegal. Renewal involves filling out a new surety bond application and submitting to another credit check. The premium may go up or down at the time of renewal based on any changes in credit score over the previous 12 months.

Why you should get your Iowa Contractor Bond from Viking Bond Service

We take the hassle out of bonding. Thanks to our efficient processes and abundant resources, we make it quick, affordable, and simple to get the bond your Iowa contractor license requires. Don't go searching for a surety agency - find everything you need through Viking Bond Service!

Get a Free Quote for an Arizona Contractor License Bond Today!

How much will your Iowa contractor license bond cost? Request a free quote at your convenience. It takes just a minute or two to submit your request. We are also happy to answer any questions you may have. Contact us in writing or call us at 1-888-278-7389.