Illinois Contractor License Bonds

Illinois contractor bond premiums typically run 1-3% of the bond amount annually. A $10,000 roofing bond costs $100-$300/year. A $25,000 roofing bond costs $250-$750/year. Chicago trade bonds, such as the $20,000 plumbing contractor bond and the $50,000 drain layer bond, are priced the same way. Exact rates depend on credit score, business financials, and claims history. Contractors with credit scores above 750 qualify for the lowest rates. For complete pricing factors, visit our surety bond cost guide at /surety-bond-cost/.

Getting an Illinois contractor bond depends on which bond you need: (1) For the state roofing bond, apply to IDFPR for your limited ($10K bond) or unlimited ($25K bond) roofing license. (2) For Chicago municipal bonds, contact the Department of Buildings for your trade. (3) Complete a bond application with your business details and authorize a credit check. (4) Receive same-day submission from Treasury-listed carriers. (5) File the bond with IDFPR or your municipal building department. The state roofing license and bond apply in Chicago too; any city license or bond is separate. For the full walkthrough, visit /how-to-get-a-surety-bond/.

No. Illinois does not issue a statewide general contractor license. However, roofing contractors must be licensed through the Illinois Department of Financial and Professional Regulation (IDFPR) and post a $10,000 or $25,000 surety bond under 225 ILCS 335. Beyond roofing, contractor licensing and any bonding are handled locally -- Chicago and many other municipalities set their own requirements, so check with the city where you work.

Under the Illinois Roofing Industry Licensing Act (225 ILCS 335/3 and 3.2), IDFPR requires licensed roofing contractors to maintain a surety bond. Limited License holders (roofing limited to residential properties of 8 units or less) need a $10,000 bond. Unlimited License holders need a $25,000 bond. The bond must be issued by an insurer authorized to transact fidelity and surety business in Illinois and is continuous until terminated with 60 days notice.

Chicago requires bonds for certain trade licenses: plumbing contractors file a $20,000 indemnification bond or letter of credit (Municipal Code §4-336-030), and drain layers file a $50,000 bond payable to the City of Chicago (§4-28-070). The Chicago general contractor license (Chapter 4-36) is built around insurance minimums that rise with the license class. Confirm the current requirements for your license type with the Chicago Department of Buildings.

The IDFPR roofing license and bond ($10,000 or $25,000) apply statewide, including in Chicago. Whether you also need a Chicago license, and any bond tied to it, depends on the work you perform -- check with the Chicago Department of Buildings. State and city requirements are independent of each other and are filed with different authorities.

Many Illinois municipalities run their own contractor registration or licensing, and some require a bond for certain trades or permits. Amounts and rules vary by city and trade. Each city has its own building department that sets local rules, so verify requirements with the local jurisdiction before starting work.

Under 225 ILCS 335, a surety company may terminate a bond by filing a 60-day notice with IDFPR and simultaneously notifying the roofing contractor. Your license is cancelled without a hearing on the termination date unless a replacement bond is filed to take effect on that date (225 ILCS 335/3.2). Violating the Roofing Industry Licensing Act is a Class A misdemeanor for a first offense.

Yes. Contractors with credit challenges can obtain bonds through specialized surety programs. While excellent credit (750+) gets rates of 1-1.5%, contractors with scores in the 500-650 range can still get approved at 3-10% of the bond amount. For a $10,000 bond, that means costs of $300-$1,000. Approval and pricing are set by the surety.

A licensed agent submits your application the same day it arrives; most quotes come back within one business day. The carrier decides approval and the final premium, and you pay only when your bond is issued.