With the enactment of SB 2311, the minimum Iowa pesticide applicator surety bond amount required was raised from $50,000 to $250,000. Gov. Terry Branstad signed the bill into law on April 19, 2012. In some cases, commercial pesticide applicators can submit an alternative financial instrument to the state in lieu of a surety bond.
This new bonding amount is explained in section 206.12 of SB 2311.
“The amount of the evidence of financial responsibility as provided in this section shall not be less than two hundred fifty thousand dollars for property damage and public liability insurance, each separately. The evidence of financial responsibility shall be maintained at not less than that amount at all times during the licensed period. The department shall be notified ten days prior to any reduction in the surety bond or liability insurance made at the request of the applicant or cancellation of the surety bond by the surety or the liability insurance by the insurer. The department shall be notified ninety days prior to any reduction of the amount of the irrevocable letter of credit at the request of the applicant or the cancellation of the irrevocable letter of credit by the financial institution. The total and aggregate liability of the surety, insurer, or financial institution for all claims shall be limited to the face of the surety bond, liability insurance policy, or irrevocable letter of credit.”
In general, surety bonds hold professionals accountable for following the rules and regulations pertaining to their industry. Because pesticides can be harmful to homeowners and their families when applied incorrectly, commercial pesticide businesses in Iowa — as well as across the United States — are often asked to maintain surety bonds. This type of surety bond requires pesticide businesses to uphold the laws of their state and industry. If a bonded pesticide business fails to do so, a claim can be made against the bond to recover losses.
Iowa pesticide professionals will file the original bond form with:
Iowa Department of Agriculture and Land Stewardship
Wallace State Office Building
502 E. 9th St.
Des Moines, IA 50319