Paul Sanchez
If you're a contractor in Illinois, you may need to be bonded and insured. The requirements vary depending on the type of contractor you are and where in the state you'll be working. For example, roofing and plumbing contractors need a state license and bond, while other types of contractors, such as general and specialty contractors, are licensed and bonded by the city or county they work in. Chicago has its own set of rules, with bond requirements outlined in Title 4 of the Chicago Code.
The cost of contractor bonds in Illinois also varies. City and county bonds typically cost $100 annually, while others require a quick application review to determine pricing. The cost of a bond can range from $50 to $25,000 or more.
In addition to contractor bonds, Illinois also offers bonded titles for vehicles. This is a regular car title with a surety bond attached, which can be useful if you never received a title for your car or if you lost it before registering the vehicle in your name.
| Characteristics | Values |
|---|---|
| What is a fidelity bond? | A business insurance policy that protects employers against employee dishonesty, theft or embezzlement |
| Who is eligible for a fidelity bond? | Any at-risk job applicant, including ex-offenders, recovering substance abusers, welfare recipients, economically disadvantaged youth and adults, and individuals dishonorably discharged from the military |
| Fidelity bond cost | No-cost insurance coverage from $5,000 up to $25,000 |
| What is a contractor license bond? | A form of security posted by the contractor to ensure compliance with state and local laws in the construction industry |
| Who needs a contractor license bond? | Contractors working with enormous sums of money or whose work can pose extreme danger to the public if not done properly |
| Contractor license bond cost | Between $100 to $2,500 or more, depending on the location of the work, the type of work, the bond amount, the risk associated with the license, and the applicant's credit |
| How long does a contractor license bond last? | Length varies, but common terms last for one or two years |
| How to get a contractor license bond? | Submit a quote request and short application online |
| What is a bonded title? | A regular Illinois car title with a surety bond attached |
| Who needs a bonded title? | Those who never received a car title when they purchased their car or lost it before registering their vehicle |
| How to get a bonded title? | Provide evidence of ownership, get a written appraisal of the vehicle's current wholesale value, get a surety bond, complete and submit a title application, complete a Motor Vehicle Use Tax Return form, obtain a lien release, and get your vehicle title bond |
| Bonded title cost | $100 |
What You'll Learn
Illinois Contractor License Bond
In Illinois, certain contractors are required to have a license to do business. When this is the case, a surety bond may also be a requirement. An Illinois contractor license bond is a form of security posted by the contractor to ensure compliance with state and local laws in the construction industry.
Who Needs an Illinois Contractor License Bond?
Under Illinois state law, only licensed plumbers and roofers are required to secure an Illinois contractor license bond. However, other contractors working in the state may be subject to the licensing and bonding requirements put in place by local governments. Some of the more common contractor positions that require a surety bond include:
- Commercial contractors
- Residential contractors
- Carpentry or structural contractors
- Electrical contractors
- Mechanical contractors
- Heating and air conditioning contractors
The cost of an Illinois contractor license bond varies based on where the work will be performed and the type of license held. Limited license contractors require a $10,000 bond, while unlimited contractors may have to post a $25,000 bond. General contractors throughout the state may need a $5,000 to $50,000 bond, depending on local licensing requirements.
The bond premium is the amount contractors must pay to obtain their required bond. The premium is usually 1-10% of the bond amount, depending on personal credit score and business finances/experience. For contractors with strong credit scores, the bond premium is closer to 1-3%, while contractors with poor credit pay a higher percentage.
How to Get an Illinois Contractor License Bond
To secure an Illinois contractor license bond, you can submit a quote request and short application online. The surety company will review your personal credit details along with your application to determine your bond premium. Once you have this information, you can move forward to finalize the bond.
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Fidelity Bonding
The Federal Bonding Program provides Fidelity Bonds to anyone who is not eligible for commercial bonding, with no cost to the employers or employees. It is a useful program that has helped many at-risk job seekers find placements in industries like hospitality, retail, construction, transportation, and healthcare.
The process of obtaining a Fidelity Bond is straightforward. The employer or job applicant must contact the nearest Job Center and register. Once a job offer is received and a start date is set, the Job Center will coordinate with the local bonding representative to submit the necessary paperwork. The bond is then issued to the employer, covering the worker, and remains in effect for six months. After this period, the employer can choose to purchase continued coverage if the worker demonstrated job honesty.
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Illinois Contractor's License Bond
In Illinois, certain contractors are required to obtain a license and a surety bond to do business. An Illinois Contractor License Bond is a form of security posted by the contractor to ensure compliance with state and local laws in the construction industry. Three parties are involved in this bond agreement: the principal (the licensed contractor required to post a bond), the surety company (that provides the bond and pays claims on behalf of the contractor), and the obligee (the state or local authority requiring a bond).
Under Illinois state law, only licensed plumbers and roofers are required to secure an Illinois Contractor License Bond. However, other contractors in the state may be subject to licensing and bonding requirements through local governments. Some common contractor types that require surety bonds include:
- Carpentry or structural contractors
- Commercial contractors
- Electrical contractors
- Mechanical contractors
- Residential contractors
- Wrecking or excavation contractors
- Heating and air conditioning contractors
The cost of an Illinois Contractor License Bond varies depending on the type of license and location. Limited license contractors require a $10,000 bond, while unlimited contractors may have to post a $25,000 bond. General contractors may need a bond ranging from $5,000 to $50,000, depending on local licensing requirements. The obligee for the statewide bond for Illinois contractors is the Department of Public Health.
To obtain an Illinois Contractor License Bond, you can submit a quote request and a short application online. The surety company will review your personal credit details and application to determine your bond premium. Once you have this information, you can proceed to finalize the bond. It's important to note that renewal terms and expiration dates for these bonds vary by jurisdiction, but common time frames for renewal are one or two years.
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Illinois Bonded Title
An Illinois bonded title is a regular car title with a surety bond attached. You need this if you didn't receive a valid title certificate when you purchased your vehicle. A bonded title allows you to claim legal ownership of your vehicle while protecting parties that may suffer financially if you are not the rightful owner.
With an Illinois bonded title, you can register, insure, sell, and transfer ownership of your vehicle. To get one, you need to:
- Provide evidence of your right to acquire a title, such as proof of vehicle ownership (e.g., a cancelled check, receipt, or bill of sale).
- Get a written appraisal of the current wholesale value of your vehicle from an authorized source.
- Purchase an Illinois title bond (or surety bond) for 1.5 times the vehicle's appraised value.
- Complete and submit an Illinois title application (Electronic Registration and Title) and pay the required fee to the Office of the Illinois Secretary of State.
- Complete a Motor Vehicle Use Tax Return form and make the tax payment, if applicable.
- Obtain a lien release if there is an existing lienholder on your vehicle.
- Submit your application and wait for approval. Once approved, you will receive your Illinois bonded title, which is valid for three years. After this period, if no claims have been filed against your bond, you will qualify for a clear motor vehicle certification of title.
The cost of an Illinois title bond is around $100, and it typically has a 3-year bond period. The premium for the bond is a small percentage of the required bond amount, and it is based on your personal credit score. If you have good credit, you can expect a premium rate of around 1% to 2%.
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Illinois Construction Bond
In the state of Illinois, a construction bond is a form of security posted by a contractor to ensure compliance with state and local laws in the construction industry. The Illinois Contractor Unified License and Permit Bond Act requires contractors to file a surety bond before performing construction work anywhere in the state.
The act defines a "contractor" as any individual who constructs, alters, repairs, moves, wrecks, or demolishes any fixture or structure in the state, including subcontractors and specialty contractors. The three parties involved in an Illinois contractor license bond agreement are the principal (the licensed contractor required to post a bond), the surety company that provides the bond and pays claims on behalf of the contractor, and the obligee (the state or local authority requiring a bond to be put in place).
The cost of an Illinois contractor license bond varies depending on the location and type of construction work. For example, the state requires lawn sprinkler system contractors and plumbing contractors to have a $20,000 bond, while roofing contractors need a $10,000 or $25,000 bond. General contractors may need a bond ranging from $5,000 to $50,000, depending on local licensing requirements.
To obtain an Illinois construction bond, contractors can submit a quote request and short application online. The surety company will review the application and determine the bond premium based on the contractor's personal credit details. Once the premium is determined, the contractor can finalize the bond. It's important to note that the renewal terms and expiration dates for these bonds may vary by jurisdiction.
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Frequently asked questions
A contractor license bond is a form of security posted by the contractor to ensure compliance with state and local laws in the construction industry. It is a requirement for many types of contractors in Illinois, including plumbers and roofers.
The cost of a contractor license bond in Illinois varies depending on the location and type of work, as well as the applicant's credit score. The typical premium ranges from 1% to 3% of the required bond amount, with prices ranging from \$50 to \$2,500 or more annually.
You can apply for a contractor license bond through a surety company. The process typically involves submitting an application and providing information such as your contractor name, physical business address, and license type. Once your application is approved, you will receive your bond.
Contractor license bonds in Illinois typically last for one or two years, but the length can vary depending on the city, county, or jurisdiction. It is important to renew your bond before its expiration date to maintain your license.
Contractors in Illinois handle large sums of money, including taxpayer funds, and their work can pose a significant risk to public safety if not performed properly. Contractor license bonds protect the public from financial loss or damage due to the contractor's failure to comply with regulations and standards.
