Illinois Surety Bond Requirements

Surety bonds are frequently required in the state of Illinois for the purpose of obtaining a business license. Other common instances in which a bond is required are for contracting purposes, when contractors want to bid or perform on state or federal projects above a certain dollar amount.

What’s the function of the bond?

The primary purpose of the bond is to offer a guarantee to the public and the state (the bond obligees) that the bonded party (the bond principal) will comply with state statutes, such as the Illinois Compiled Statutes, in conducting their work.

The purpose of the bond is also to provide compensation in cases in which a violation of the bond agreement on behalf of the principal occurs, causing damages or losses to the obligees.

For a thorough explanation of how bonds work, see our ‘What is a surety bond’ guide!

To go straight to the application, find your surety bond in the table below and follow the link.

If you’re not sure what type of bond you need, keep reading to find out more about the different types of surety bonds in Illinois, how much they cost and how you can get bonded.


Types of Surety Bonds in Illinois

When applying for a bond in Illinois, you may require one of the following three main types of bonds:

  • License and permit bonds
  • Contract bonds
  • Court bonds

See the sections below for further information about every type, and find the one that’s right for you.

License & Permit Bonds

Many businesses who need to get licensed before they can operate also need to get а license and permit bond. These bonds are sometimes also called commercial bonds.

For example, auto dealers in Illinois are required to obtain an auto dealer bond which needs to be renewed every year along with their license. Freight broker bonds are another type of bond which are very popular with us and are often applied for. These are only two of the many license bonds required and issued in the state.


Contract Bonds

Illinois contractors will often be required to post contract bonds before they can begin work on a project. These bonds can be required both by the state as well as by private project owners, especially on larger projects.

Some contract bonds guarantee that contractors will perform in compliance with their contract. Others serve as a guarantee that they will pay their subcontractors, laborers and suppliers.

Court Bonds

Court bonds are a third type of bonds which you may be required to post. These bonds are usually requested by Illinois courts whenever an appellant appears before a court and wants to appeal a judgement. They are also required in instances in which a fiduciary or guardian is appointed by a court.

If you are still not sure which Illinois surety bond is right for you, let us help you! Call us at (866)-450-3412 anytime to speak to one of our surety bond experts.

How Much Does a Surety Bond in Illinois Cost?

The cost of your bond is fraction of its full amount. How much your bond will cost depends on what type of bond you are applying for and on your particular application.

What is the bond amount?

Your surety bond has a particular amount - for example, $20,000 in the case of the auto dealer bond. If a claim is filed against the bond, this amount is the total coverage that the surety would extend to the bond’s obligees (the state of Illinois and your customers). The surety bond amount is different from the cost of your bond.

The cost of your bond is a percentage of the total amount of the bond. In other words, to obtain a bond, you will have to pay only a small part of the full amount. This fraction is determined by sureties on the basis of a number of financial factors according to which they grade applicants.

Which factors determine the cost of my bond?

The most important factor which sureties take into consideration when determining the premium rate of an applicant is their personal credit score. High credit score applicants are considered more secure and are thus offered better rates. Other factors which sureties consider are:

  • Your business financial statements
  • Your personal financial statements
  • Your industry experience
  • Years in business
  • Other financial and business factors

Applicants with high credit score are offered rates on their Illinois surety bond between 1%-4% of the total amount of their bond. These rates are considered standard market rates.

Can applicants with low credit get bonded?

Applicants with a lower credit score can certainly also get bonded, though they are offered slightly higher rates. Such applicants are typically able to get bonded at rates between 5%-15% of the total bond amount.

Visit the Bad Credit Surety Bond Program page for more information on getting bonded with a lower credit score.

You can get an estimate of the cost of your bond through our surety bond calculator below.

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Surety Bond Cost Calculator

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If you would like to know more about surety bonds and how they are priced before you apply, have a look at our surety bond cost page. It will offer you plenty of useful information on the topic.

How to Get Bonded in Illinois

If you know what type of surety bond you need, all you have to do is follow the steps below.

License bond application

To get started, complete our 1-page online bond form. We will then get in touch with you to provide you with a free quote on your bond and additional information about finalizing the bonding process.


Contract Bond Application

For contract bond applications, download and complete one of the contract bond online forms, depending on the amount of the bond you require. When you’re done, send the form to us, and we’ll get in touch with you as soon as we have processed it.

To learn more about getting bonded in Illinois, call us at (866)-450-3412 anytime!

Further Reading:

[AdditionalResource link=""]Office of the Secretary of State[/AdditionalResource]

[AdditionalResource link=""]Illinois Department of Financial and Professional Regulation[/AdditionalResource]

[AdditionalResource link=""]Illinois Compiled Statutes[/AdditionalResource]

About the author:
Todd Bryant
Todd Bryant is a graduate of Germantown Academy and the University of Pittsburgh College of Business Administration Honors College. He has been President of Bryant Surety Bonds, Inc., an A+ rated Business with the Better Business Bureau, since 2007. Licensed as a producer with the Department of Insurance, he has been published in the National Association of Surety Bond Producers newsletter and on numerous authoritative publications such as The Washington Post,, and many more.