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What is an Iowa Farm Labor Contractor Bond?

This type of surety bond provides a guarantee that farm labor contractors will follow all applicable rules and regulations in the state of Iowa. If they don't, anyone wronged by their behavior (typically the migrant laborers they employ) may file a claim against the farm labor bond seeking compensation.

How does an Iowa Farm Labor Bond Work?

When a surety company receives a claim, it investigates the details to verify whether or not they're true. Provided that everything checks out, the surety will automatically pay the claim in full. After paying, the surety shifts its focus to collecting the amount of the claim/settlement from the bonded party (eg. the farm labor contractor) who caused the claim in the first place. The bonded party is legally liable for all claims even if they can't or won't pay.

What is the purpose of a Farm Labor Contractor Bond in Iowa?

The first purpose is to hold farm labor contractors accountable when they violate state laws and ethical standards. The second purpose is to create a mechanism for victims of farm labor contractors to seek and receive compensation - something that could be difficult or impossible without a bond agreement.

Who needs Farm Labor Contractor Bonds?

The Iowa Division of Labor will determine who needs one of these bonds, for what reason, and in what amount. Anyone planning to work as a farm labor contractor should prepare to get a bond. If you're unsure when, where, why, or how the Iowa farm labor bond requirements apply to you, Viking Bond Service is happy to help you find answers.

In Iowa, who are the parties involved in a Farm Labor Contractor Bond?

  • Principal - The bonded farm labor contractor. Under the bond agreement, the principal has a financial liability to pay the obligee for valid claims.
  • Obligee - The party that has the right to file claims for damages against the bond because of the actions of the principal.
  • Surety - The company that issues the bond to the principal. The surety also guarantees payment to the obligee for valid claims, after which the principal must pay the surety back in full with interest and fees included.

How to get a Farm Labor Contractor bond in Iowa

Applying for a bond involves completing an application, submitting to a credit check, and turning over a copy of the bond requirements. The surety may ask for additional documentation. Based on the information provided, underwriters will quote the applicant a price for the bond. Once paid, the bond activates and the bonded party receives a document to prove they have the required bond.

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

You should work with us for one simple reason: We make bonding easy from beginning to end. No one wants to spend more time, money, and mental energy on bonding than they absolutely have to. We understand. That's why we've made bonding simple and straightforward, and why we work to get every applicant a competitive premium quote. We strive to be a partner to the Iowa farm industry. Let us extend that commitment to you too.

Get an Iowa Farm Labor Contractor Bond from Viking Bond Service

You can request a quote at any time - take just a few minutes to fill out the form found at the link. If you have questions you want to ask first, we're happy to answer them. Contact us or call 1-888-278-7389 for all things bonding.

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