Please note that the following information is related to contractor’s license bonds. If you are a contractor seeking information on obtaining contract surety bid and performance bonds, please visit our contract bond page.
What is a Illinois contractor’s license bond?
In Illinois, contractor bonds are required by city or state authorities for multiple construction specialists. An Illinois contractor license bond protects the contractor’s customers and the principal from potential fraud and misuse on construction works, guaranteeing all local and state rules are followed by contractors. An Illinois contractor bond is a three-party contract: the construction company that needs to get bonded (the principal), the authority that requires it is the obligee, and the third party which provides the bonding is the surety.
Obtaining Contractor’s License Bonds for My Trade.
Various cities and contractor classifications in Illinois require contractors to post surety bonds prior to completing work. Applicants should verify their required bond amount with the city and/or government entity in charge of licensing and registration for their classification prior to bonding.
Bonding requirements for general and residential contractors applies to the entire state of Illinois. The following have surety bond requirements that vary for contractors:
- Roofing Contractors require a license bond in the amount of $10000 limited surety bond or $20000 unlimited surety bond
- Lawn Sprinkler System Contractors require a license bond in the amount of $20000
- Irrigation Contractors require a license bond in the amount of $20000
What is the process to obtain the bond?
Colonial offers one of the fastest ways to obtain a contractor’s license bond. We are the insurance company — which means no agent, no broker, and no middleman. There is no turnaround time to obtain your bond. The steps are simple- get a free quote online, fill out your information, answer our underwriting questions, and enter your payment method. Your bond will be available in a PDF or original form, and always accessible to you online. It’s that simple!
What Do Contractor’s License Bonds Cost?
Contractor’s license bonds are reasonably priced and easy to obtain — so that you can run your business. You may notice that with other insurance agents and middlemen companies, your premium rate will fluctuate and include additional hidden fees and costs. Not at Colonial. We offer a flat rate for each contractor’s license bond.
Does it matter where I get my bond?
It is important to understand how surety bonds work, and who is the insurance company issuing your bonds. It is easy to run your business when you deal direct with a quality insurance company licensed in New Jersey to write surety bonds. Colonial is an A (Excellent) rated insurance company by A.M. Best, that has been incorporated since 1930. We are Treasury listed, and licensed and admitted in all U.S. states and territories.