The City of Elgin has mandated that certain contractors who wish to perform work for the city must be bonded specifically with the city.
Without the bond in place, a permit to perform work on behalf of the city will not be granted.
AmeriPro Surety Bonds will provide the City of Elgin contractor license bond.
Mechanical contractors and sewer contractors are both required to obtain a $20,000 surety bond with the City of Elgin.
The City of Elgin is the bond’s obligee, that is, they are the ones requiring the bond.
The purpose of the City of Elgin contractor license bond is a financial guarantee that contractors will perform all work required and that work will be completed according to established norms.
The bond is for the sole protection of the City of Elgin; it does not protect either the mechanical or sewer contractor.
If the City of Elgin should suffer some financial loss or harm caused by a licensed contractor, the bond’s existence allows the city to recoup any losses up to the $20,000 amount.
But, the surety bond is not an insurance policy.
What that means is that should a claim be paid from your surety bond to the City of Elgin, you will be legally required to reimburse the surety in full for all costs and fees in settling the claim.
The premium is the price you will pay for the surety bond’s issuance.
That amount will ultimately be determined by your credit score and the information provided on a standard application.
The Illinois City of Elgin contractor license bond also allows you to prepay the bond for up to a period of 3 years, thereby offering a savings over annually renewing your surety bond.
AmeriPro Surety Bonds is a surety bonds-only agency which provides license and permit, contractor, court, and fiduciary bonds throughout Illinois.
We also provide surety bonds nationwide.