Contractors in Illinois need contractor license bonds for many city or county licensing approvals. Surety Bonds Agent helps you handle the request with reliable guidance and professional service. Get a free quote today.
It’s easy with our simple 3-step process:
In Illinois, certain types of contractors must be licensed and bonded at the state level. Others may need to obtain a local license, depending on their work type and the municipalities or counties in which they do business. When an Illinois contractor license is required, the purpose is to provide a measure of financial protection for the contractor’s clients in the event that the contractor does not live up to their professional obligations.
Who Needs One?
Only roofing and plumbing contractors must be licensed and bonded at the state level. The Illinois Department of Financial and Professional Regulation issues licenses for roofing contractors. The Illinois Department of Public Health handles state licensing of plumbing and irrigation contractors.
Additionally, certain municipalities require licensing and bonding of contractors working in those jurisdictions. The required bond amount varies by jurisdiction and license type.
How Does an Illinois Contractor License Bond Work?
An Illinois contractor license bond, statewide or local, is legally binding on three parties:
A claim may be filed by the injured party when the principal’s unlawful or unethical business conduct results in financial harm to a client. The principal is legally obligated to pay any claim the surety finds to be valid up to the required amount of the bond (also called the bond’s “penal sum”).
However, the surety has guaranteed the bond, meaning that the surety will extend credit to the principal if necessary to pay a valid claim. To expedite the process, the surety will pay the claimant directly and allow the principal a certain period of time in which to repay the resulting debt to the surety. Not being repaid for that debt gives the surety the right to take legal action against the principal to recover the funds.
Contractor license bonds usually are sold for an annual premium that is a small percentage of the required bond amount, that percentage being the premium rate. The surety assigns each principal a premium rate based on a case-by-case underwriting assessment. The main underwriting concern is the risk the surety will take in agreeing to guarantee the payment of claims by the principal.
The primary measure the underwriters use in assessing the risk of the surety not being repaid for claims paid on behalf of the principal is the principal’s personal credit score. A high credit score signals low risk and a low one is a sign of higher risk. Low risk deserves a low premium rate and higher risk leads to a higher rate. Bond applicants with good credit typically are assigned a premium rate in the 1% o 3% range.
We proudly serve all 50 states, offering a full range of surety bonds. To buy surety bonds online:
There’s no obligation, and we can often help you get bonded in 24 hours or less.
Choose the exact bond required by your state or local licensing board.
Fill in our simple online application in just a few minutes with no hassle.
Get approved quickly and receive your official bond document via email.
Our online and phone application options make starting the bonding process simple and convenient while reducing unnecessary complexity.
Through relationships with trusted national surety carriers, we provide clients with different bonding options based on their individual needs.
As an independent agency, we use our carrier network to identify competitive rates and terms that match each client’s profile.
Many bonds are issued within 24 hours, helping clients continue with projects, licensing requirements, or court obligations without avoidable delays.
With 30 years of combined industry experience, our licensed agents understand bond requirements and help clients find suitable solutions for their situations.
Request a free consultation and learn how Surety Bonds Agent can assist with your bonding needs.
866-362-6637
Apply online in minutes whether you need a bond for a local municipal permit or a state trade license.
