Illinois Contractor License Bond

All Illinois plumbers are required to get a bond when applying for their license. The same requirement applies to roofing specialists in the state, who need to complete the roofing contractors license process.

As there is no general Illinois contractor license for building, the bond requirement for general construction contractors is enforced on the level of city authority. Before starting your licensing, it’s best to check with your local licensing body what its exact criteria are.

In all cases, the goal of the bond is to protect contractors’ clients. It ensures that the services provided by contractors will comply with the applicable rules, and that all contractual agreements will be met.

Illinois roofing contractors must post a $10,000 bond for a limited license, and a $25,000 bond for an unlimited one with the Illinois Department of Professional Regulation. Plumbing specialists have to obtain a $20,000 bond, and provide it to the Department of Public Health Environmental Health Plumbing Program.

The bond requirements across different cities in Illinois range between $5,000 and $50,000, depending on your location.

The bond premium is different from the bond amount you have to post. It’s only a fraction of it, usually in the range of 1% and 5% of the bond amount. If you need a $20,000 bond, you can expect a premium between $200 and $1,000.

How is your Illinois contractor license bond cost determined? After you apply with a surety, the surety takes a close look at your financial situation. It needs to examine your personal credit score, personal and business finances, and assets and liquidity to assess the bonding risk. Your bond price will be lower if your overall financials are solid.

If you want to get a complete overview of how your bond price is set, our surety bond cost page has all the facts.

For contractors with financial troubles, Lance Surety Bonds operates its Bad Credit Surety Bonds program. It’s here to allow contractors with low credit scores, tax liens, bankruptcies, or civil judgements to get the bonds they need.

The bad credit bonding rates are typically between 5% and 10%. The increased premium compensates for the higher bonding risk. With us, however, you are always guaranteed the best bonding price for your situation. We forge close connections with a number of A-rated, T-listed surety companies, so we can shop around for the strongest bond option for your case.

You can apply online today for a free Illinois contractor license bond quote. After completing a full application, we’ll determine your exact bond price as well.

For more information about the bonding process, you can consult our How to Get Bonded page.

Call us at (877) 514-5146 if you have any questions. Our bonding specialists are here to help

Your Illinois contractor license bond is different from insurance. It does not protect your business, but instead safeguards the interests of your customers and the licensing authorities.

If you fail to abide by applicable rules, you can face a bond claim against you. On proven cases, your bond amount can be used to compensated harmed parties. At first your surety reimburses the claimant, but you are liable to repay it fully afterwards.

Claims can cause serious problems for your contractorship. They are to be avoided, as they can even prevent you from getting bonded in the future.

If you want to operate as a roofing contractor, you need to follow the licensing procedure set by the Illinois Department of Professional Regulation. For plumbing contractors, the licensing is regulated by the Department of Public Health Environmental Health Plumbing Program.

General contractors need to check with their local authorities what their exact Illinois contractor license requirements are.