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Iowa Contractor License Bond

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What is an Iowa Contractor License Bond?

A contractor working in Iowa may be required to have a license before beginning work with a customer. As part of the licensing requirements, an Iowa contractor license bond may be necessary, depending on the city or municipality overseeing licensing requirements. An Iowa contractor license bond is not insurance for the contractor but instead, works as a safeguard for the contractor’s customers in the event they experience losses due to fraudulent or illegal activities.

An Iowa contractor license bond is a type of surety bond that involves three parties. The principal, which is the licensed contractor, obtains the bond, while the obligee, the state or local authority in charge of licensing, requires a bond to be posted. A surety company provides the bond to the principal and pays claims on their behalf. Any successful claims that result in compensation are repaid by the contractor who holds the bond.

What Does an Iowa Contractor License Bond Cost?

In Iowa, licensed contractors are required to post a bond between $5,000 and $25,000. Fortunately, the price you pay for an Iowa contractor license bond is not the full amount. The surety company prices contractor bonds as a percentage of the bond requirement, ranging from 1 to 10% in most cases.

The percent you pay for your bond, known as the bond premium, is determined by your personal credit score. Contractors with a score below 599 may be deemed a higher risk to the surety company. To help offset this risk, the cost of an Iowa contractor bond is higher than it would be for someone with a high credit score.

How Do I Get an Iowa Contractor License Bond?

You can start the process of obtaining an Iowa contractor license bond by submitting a short application form and quote request online. Once your business details and credit score are reviewed, the surety company will provide your bond quote and the steps you need to follow in order to post your bond.


Frequent Questions

How much does a bond cost?

Pricing is a percentage of the bond amount that’s required of you, which is based on your personal credit. Use our bond pricing tool to to get a quick ballpark estimate.

Can I get bonded with bad credit?

Yes. You can apply and get bonded with bad credit. Our agency is the largest writer of bonds in the county, which allows us to approve contractors for bonds when other agencies cannot.

Are these the same as contract bonds?

No. Contractor license bonds ensure you will abide by the laws of your state, city or municipality when performing contracting work. Contract bonds guarantee public projects will be completed properly and are a separate bond type. You can learn more about contract surety bonds by visiting the contractor bond center.

Do I need a state or local bond?

It depends on who is requiring the bond of you, the local municipality, county or state. Depending on your location, it is possible you may need both a local and state bond, as contractor license bond requirements can vary drastically. You can select your state to see a full list of contractor license bond requirements.


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Jennifer Henson
Our company has been with JW Surety for several years now so when we needed to obtain a bond for a new company, we immediately went to them for help. Our rep, Melissa, was extremely helpful and prompt which made the process extremely easy for me.
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Trying to get a local Surety Bond was like driving a car on three tires. I searched Surety Bonds and found JW Surety Bonds. I got online and filled out the information and with in 30 minutes received a response from Melissa. She was informative, friendly and helpful. One more super satisfied customer.

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