Iowa Service Contract Provider Company Bond Guide
In Iowa, service contract provider companies must file a surety bond to register with the Insurance Division.
Bond Overview
- Purpose: To ensure service contract provider companies uphold state regulations and client contracts
- Who Needs It: Businesses offering extended service contracts in Iowa
- Regulating Body: The Insurance Division
- Required Coverage: $25,000–$100,000
- Premium Rate: 1–15% based on credit score
Learn all about the bond requirements and process in this guide.
What Is an Iowa Service Contract Provider Company Bond?
This bond ensures that service contract provider companies in Iowa comply with state standards and have the financial capacity to fulfill contracts.
The Iowa Insurance Division requires this type of commercial surety bond to register with the state.
How Much Do Service Contract Provider Company Bonds Cost in Iowa?
Iowa service contract provider company bonds cost a small percentage of the bond amount, typically 1–15%.
Exact rates vary based on personal credit score. Apply for your free quote now!
SuretyBonds.com offers the lowest available rates from our nationwide provider company network with no added fees.
Who Needs a Service Contract Provider Company Bond?
In Iowa, you must register with the state before providing contracts for additional maintenance on homes or motor vehicles.
Your bond amount will be 5% of your total contract revenue minus claims paid, with a minimum of $25,000.
How Do I Get My Bond?
SuretyBonds.com provides the fastest and easiest way to get an Iowa service contract provider company bond. Just follow these quick steps:
- Apply: Submit an online quote request form
- Quote: Receive your quote within one day
- Sign: Complete the indemnity agreement
- Buy: Purchase the bond online 24/7
We’ll email you the bond shortly after purchase. Be sure to file the bond with the Insurance Division as instructed.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does an Iowa Service Contract Provider Company Bond Work?
As with all surety bonds, a service contract provider company bond creates a legal contract between three parties:
- Principal: You, the service contract provider company filing the bond
- Obligee: The Iowa Insurance Division requiring the bond
- Surety: The provider company issuing the bond
This holds you financially responsible for upholding the provisions of Iowa Code Chapter 523C.
If you break the bond terms, harmed parties can file claims. The surety will pay valid claims up to the bond amount, but you are ultimately responsible for refunding the surety.
How Do I Renew My Bond?
These bonds expire annually. To renew your service contract provider company bond, simply pay your renewal invoice when prompted.
We’ll begin contacting you by phone and email 90 days before the expiration date.
