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Illinois Contractor's License Bond

Contractor license bonds are essential surety bonds in the State of Illinois. This type of bond is required for anyone seeking a contractor license in Illinois. It serves as a means of guaranteeing the contractor's adherence to applicable regulations and standards. The Illinois contractor's license bond helps ensure that licensed contractors can be trusted to do good work. Although the bond is geared toward guarding the public, licensed, bonded contractors also build consumer confidence and trust.

How Does Contractor License Bond In Illinois Work?

An Illinois contractor license bond is a type of surety bond that guarantees that the bonded contractor will perform the job in accordance with all applicable laws, regulations, and industry standards. First, the bond provides a financial incentive to conduct business legally and ethically. Secondly, the bond creates a mechanism for compensating damaged parties if the contractor commits fraud or endangers the public with shoddy workmanship.

An Illinois contractor license bond is a legal contract between three essential parties:

• The Principal is the bonded contractor.
• The Obligee is the government agency that requires the bond.
• The Surety is the insurance company that underwrites the surety bond.

If a client or subcontractor believes a contractor has violated the law or committed fraud, they can file a claim against the Illinois contractor license bond. The surety must investigate all claims thoroughly. If they find the claim has merit, the surety pays the claim up to the bond's total value. The surety will dismiss all invalid claims. The principal is financially responsible for all valid claims against the bond and must repay the surety for any paid claims.

Illinois Contractor License Bond Requirements

The Illinois contractor license bond requirements are complicated. All roofing contractors and plumbers in Illinois must be licensed and bonded before performing any work anywhere in the state. Illinois is somewhat unique, however, in that almost all other kinds of contractors have to be licensed and bonded by the city or county they will be working in. In Chicago, the rules are different, and bond requirements are set forth in Title 4 of the Chicago Code.

Contractor license bonds for the following licenses are frequently required by cities, counties, townships, and villages in the state of Illinois:

• Building or construction
• Electrical
• General
• Heating, ventilation, and air conditioning (HVAC)
• Masonry
• Wrecking or excavation

If you need clarification on whether you need an Illinois construction bond, contact the surety experts at Viking Bond Service. We will work with you to help you determine and qualify for the Illinois surety bonds you need.

Types of Contractor License Bond in Illinois

There are several types of contractor license bonds in Illinois, each with a different bond amount. The kind you will need depends upon the construction service you provide. Some of the bond types are:

• General Contractor Bond - $5,000 - $50,000
• Plumbing Contractor Bond - $20,000
• Roofing Contractor Bond (Limited) - $10,000
• Roofing Contractor Bond (Unlimited) - $25,000
• Irrigation Contractor Bond - $20,000
• Cook County Signboard Contractor Bond - $25,000
• Cook County Demolition Bond (1-3 stories) - $20,000
• Cook County Demolition Bond (4+ stories) - $40,000

We can help you learn precisely the contractor's bond you need so that you can get to work.

Why are Contractors Required to be Bonded in Illinois

Contractors in Illinois work with enormous sums of money, sometimes even taxpayers' money. Further, their work can pose extreme danger for the public if it is not done up to the relevant codes. Illinois contractor's license bonds protect the general public from any damage arising from a contractor's failure to follow all applicable regulations and standards.

The Cost of Contractor License Bond in Illinois

The cost of Illinois contractor's license bonds varies based on the location of the work, the type of work, the bond amount, the risk associated with the license, and the applicant's credit. The typical premium ranges from 1% to 3% of the required bond amount. Principals with better credit pay a lower premium than those with problematic credit.

Can I Get an Illinois Contractor License Bond With a Bad Credit?

A surety company uses the principal's credit history to gauge how risky it is to provide a specific bond. That's why those with better credit pay a lower surety bond cost. However, at Viking Bond Service, we do not assume your past credit history defines you. So, we have established a bad credit surety bond program to help applicants with troubled credit qualify for bonding at the best possible price.

How Long Does a Contractor License Bond in Illinois Last?

Illinois contractor bonds vary in length from one city, county, or jurisdiction to the next. However, the most common terms last for one or two years. You will need to maintain your bond and renew it on time to remain licensed and bonded for work.

How to Get a Contractor License Bond in Illinois?

Viking Bond Service has provided surety bonds for clients around the Prairie State for over a decade, so you can trust us with your Illinois contractor license bond request. Our bonding process is easy, stress-free, and quick. Simply complete our online application, and we'll get you a competitive quote ASAP. If you have any questions, please contact us online, or call us at 1-888-2-SURETY (1-888-278-7389). We'll get you bonded so you can focus on what you do best!