A surety bond is a contract that promises you will follow through on your duties. You might need a surety bond to get licensed depending on your profession.
If you follow through on your duties and perform your work ethically and honestly, nothing will happen with your bond.
Here’s how to get an Illinois surety bond.
How to get a Surety Bond in Illinois
Step #1: Apply for bond
The first step to getting an Illinois surety bond is to apply for your bond. Not everyone can get approved for a bond, so this is the first step to getting bonded.
Most companies all you to apply for your bond online.
You can apply for a bond at your local insurance agency, or a specialized surety bond company.
Surety bond companies often have access to better rates.
Step #2: Get approved and view pricing
Once you apply for your surety bond, an underwriter will evaluate the risk of bonding you.
If someone were to make a valid claim on your surety bond, the surety company might need to step in and financially compensate the claimant. The surety company will come to your for reimbursement of that money, though, so they want to make sure you are financially able to repay them if a claim occurs.
If you are approved for an Illinois surety bond, you will be approved at a certain rate.
That’s right; you do not need to pay the full amount of the bond to get bonded. You will pay anywhere from 1-15% of the bond amount, depending on your personal credit.
The below chart gives you an estimate on what you might pay for your surety bond.
The best way to see what you’d pay for an Illinois surety bond is to get a free quote:
Step #3: Pay for bond and sign indemnity agreement
The last step is to pay for your bond. You might also need to sign an indemnity agreement before you can receive your bond.
You only need to pay for your bond one time.
The only time you’d need to pay monthly for your bond is if you choose to finance your payments.
After Purchasing Your Bond
After purchasing your bond, it is your responsibility to uphold your obligations. Depending on what type of bond you have, this might simply mean following the rules of your industry and running a solid business.
Make sure you understand the obligations of your bond so you do not incur bond claims.
Most bonds need to be renewed for you to remain bonded. You might need to renew your bond after a year, or some bonds are renewed after 2 or 3 years. You will need to pay for your bond again to renew it.