If you’re a plumbing or mechanical contractor in Iowa, you may be required to obtain a plumbing and mechanical systems bond. This surety bond is a form of financial protection that guarantees that you’ll comply with industry regulations and requirements in your state.
What is a plumbing and mechanical systems bond?
A plumbing and mechanical systems bond is a surety bond that protects the public and the state from harm caused by the negligence of a plumber or mechanical contractor. The bond ensures that the contractor will comply with state laws and regulations related to their work or pay for any damages they cause if they don’t. This bond is required as part of the state licensing process.
Get Your Contractor Bond:
- A plumbing and mechanical systems bond is a surety bond that protects the public and the state from harm caused by the negligence of a plumber or mechanical contractor.
- The bond amount required in Iowa is $5,000, so the premium range would be $100 to $500.
- To become a plumbing or mechanical systems contractor in Iowa, become licensed with the Iowa Plumbing & Mechanical Systems Board and register with the Iowa Division of Labor.
How much does a plumbing or mechanical contractor bond cost in Iowa?
The cost of a plumbing and mechanical systems bond in Iowa varies depending on several factors, including the bond amount, the contractor’s credit history, and the surety company issuing the bond.
In general, the cost of a bond is between 1% and 5% of the bond amount. The bond amount required in Iowa is $5,000, so the premium range could be around $100 to $500 per year.
How to Become a Plumbing and Mechanical Contractor in Iowa
To become a plumbing and mechanical systems contractor in Iowa, register with the Iowa Division of Labor and become licensed with the Iowa Plumbing & Mechanical Systems Board. Here are the criteria:
- Be at least 18 years of age.
- Provide documentation of any criminal convictions related to the profession.
- Complete the Iowa Plumbing and Mechanical Systems Board Application for Contractor’s License.
- Submit applicable fees.
- Provide a valid unemployment insurance number.
- Post a $5,000 surety bond.
- Be issued a Division of Labor Contractor Registration Number.
- Show evidence of a permanent place of business.
- Provide evidence of public liability insurance of at least $500,000.
Once you have completed all the required steps, you’ll receive a license to operate your business in the state. You can learn more about your requirements on the State of Iowa Department of Health and Human Services website.
Apply for Your Mechanical & Plumbing Contractor Bond Today
ZipBonds offers the fastest and most secure option for getting the surety bonds you need. Our all-digital platform is intuitive and straightforward. Apply online or call us at (888) 435-4191 to speak with an agent. Most of our bonds are approved and processed immediately from our site.
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.