Iowa Out of State Contractor Bond
AmeriPro Surety Bonds | 844-589-9732
Out of State Contractors – Iowa
According to Iowa’s Workforce Development Division, out of state contractors — even those who maintain an office in Iowa — are required to register with the state.
A $25,000 surety bond is also required as a prerequisite to licensing. Our agency will help you to comply with the surety bonding process as quickly as possible.
Qualifying and the Premium
To qualify for the $25,000 Iowa out of state contractor bond, an applicant will need to complete a short surety bond application — which we will begin with you over the phone — and have it signed and witnessed.
Once the application has been received back to our agency, an underwriter will review the application. A credit score review is also standard for this surety bond, and an applicant will need “good credit” in order to qualify.
Upon approval of your good credit, you will be approved at 2%, or $500 for the premium.
Once the premium has been paid, our agency will have this bond issued immediately on your behalf. A copy of the bond can be sent to you by email; however, it is the original bond, which you will sign as Principal, that you will want to file with the state.
Surety Bond Duration
Your surety bond is issued with a standard term of one year; thereafter, both the premium and the surety bond renew.
Our agency also offers you the ability to prepay the bond for up to 3 years. Prepayment of your premium lengthens the time between renewals. You also have a savings versus renewing your premium each year. The prepayment options and savings are as follows:
- If prepaid for 2 years, the premium is $900, a $100 savings;
- If prepaid for 3 years, the premium is $1300, a $200 savings.
Purpose of the Surety Bond Requirement
As an out of state contractor performing work in Iowa, the state wishes to guarantee that as a condition of granting a license, all taxes owed to the state will be paid. Additionally, by means of this surety bond requirement, Iowa is guaranteeing that unemployment insurance premiums, interests, and penalties will be paid which is owed for work performed in Iowa.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit and court surety bonds throughout the state.
Our agency also provides surety bonds nationwide.
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