Iowa Business Service Bond

The bond protects your clients (not your business) from theft, fraud, or dishonest acts committed by your paid employees while working on the client's premises. It covers direct losses like stolen cash, securities, or property damage caused by employee dishonesty. Coverage typically ranges from $5,000 to $100,000. Note: The bond does NOT cover acts by business owners, independent contractors, or indirect losses like lost income.

To file a claim, the client must identify the specific employee responsible for theft or dishonesty, and in most states, that employee must be tried and convicted of the crime. The client files a claim against your business, which then submits it to the surety company. If approved, the surety pays the claim up to the bond limit (minus any deductible), and your business must reimburse the surety company for the payout. This is why the bond protects clients, not the bonded business.

No, Iowa does not have a statutory requirement for janitorial or business service fidelity bonds. This bond is voluntary and typically requested by commercial clients or included as a contract requirement. Many janitorial companies obtain this bond to demonstrate credibility and protect their clients from employee theft or dishonesty.