Iowa business opportunity bonds.
From $300.
Iowa requires a seller of business opportunities to post a surety bond under the Business Opportunity Promotions Act (Iowa Code chapter 523B), filed with the Iowa Insurance Division’s Securities Bureau. The statutory minimum is $15,000; the administrator can require more. Premiums are 2% of the bond amount.
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How much does an Iowa business opportunity bond cost?
2% of the bond amount, from $300 at the $15,000 minimum. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
No underwriting queue for the standard seller bond — enter your amount, pay, and file with your disclosure documents. Here is the whole thing:
Apply online
Your business details, the required bond amount, and the effective date — that is the application.
Issued on the spot
Most applications are issued as soon as you pay — no credit check up to $10,000. Above $10,000, a soft pull may add a short review.
File with the Insurance Division
Submit the executed bond with your business opportunity registration and disclosure documents to the Securities Bureau. Wet-ink originals mailed on request.
What it is and who needs it.
What the seller bond actually covers
Iowa's Business Opportunity Promotions Act (Iowa Code chapter 523B) regulates the sale of business opportunities — turnkey ventures, distributorships, and similar offerings. The Act is administered by the Iowa Insurance Division's Securities Bureau, and a seller must provide security, typically a surety bond, before doing business in Iowa.
The bond is held for the benefit of purchasers who are damaged by the seller's violation of the Act — for example, misrepresentation in the disclosure document or failure to deliver what was promised. Your disclosure document must name the surety, so purchasers know the bond exists.
The statutory minimum is $15,000, and the administrator may require a larger amount based on factors like how long you have operated, your in-state investment, and your net worth. Enter the figure you were required to post — premiums start from $300 and no credit check up to $10,000.
You need this bond if you are
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with the Insurance Division. Submit the executed bond with your business opportunity registration and disclosure documents to the Securities Bureau. Wet-ink originals mailed on request.
What sets the price
The premium is 2% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $10,000. Above that, the carrier may run a soft pull, which never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued on the spot for most.
Submit the application with the bond amount the administrator required — most executed bonds generate instantly, ready to file with your disclosure documents.
Start the application →Common questions.
Other Iowa bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Business opportunity bond, issued today.
Premiums from $300. Enter your required amount and file the same day.