--- title: "Illinois Public Construction Bonds" description: "Illinois public construction bidders should check whether the owner is the State, a local unit, or the Department of Transportation or Toll Highway Authority." canonical: "https://spot.insure/coverage/surety-bonds/illinois" page-type: "coverage-state-guide" updated-at: "2026-09-28" --- Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and insurance research. Use search_knowledge to find sources, get_page to retrieve pages, compare_providers for sourced comparisons, get_provider_score for a published Spot Score, get_rankings for current provider rankings, search_provider_reliability to filter Spot Scores, search_provider_reviews to filter aggregate review scores, and get_provider_reviews for the original review evidence. The server is read-only and requires no authentication. [Human-readable page](https://spot.insure/coverage/surety-bonds/illinois) # Illinois Public Construction Bonds For most Illinois public works contracts costing over $150,000, the Public Construction Bond Act requires a bond to the contracting government. IDOT and the Illinois State Toll Highway Authority instead have a temporary $500,000 threshold through January 1, 2029. The amount is fixed by the public owner, so bidders should price the specified bond form and confirm the surety meets the statute’s licensing and rating standard.[^1][^2] **Coverage:** [Surety bonds](/coverage/surety-bonds) · [Illinois](/coverage/states/illinois) ## What Is Surety Bonds? A surety bond guarantees that your business meets a specific obligation to a customer, contracting party or government agency. If a contract, license or permit requires one, get its exact form and amount; a bond is not insurance for your own losses. [Read the national Surety bonds guide](/coverage/surety-bonds). ## Illinois Requirements | Requirement | Details | | --- | --- | | Most state and local public works | Until January 1, 2029, public works contracts over $150,000 generally require the contractor to furnish a bond to the State or contracting political subdivision.[^1] | | IDOT and Toll Highway Authority | Until January 1, 2029, IDOT and the Illinois State Toll Highway Authority require a bond only when the public works contract costs more than $500,000.[^1] | | Surety qualification and bond amount | The surety company must be licensed by the Illinois Department of Insurance and have at least an A- financial strength rating; the public owner fixes the bond amount.[^1] | ## What to Watch for in Illinois ### Separate enacted future changes from current law Public Act 104-0168 takes effect June 1, 2027. It preserves the over-$150,000 general threshold and special over-$500,000 highway threshold through 2028, then changes the general threshold to over $50,000 starting January 1, 2029. Do not apply future text early.[^1] ### Bond combines completion and claimant protection The Act conditions the bond on contract completion and payment for labor and materials. Project documents may specify how performance and payment obligations appear in the form; verify the obligee’s required form and the amount.[^1] ### Developer security can be a separate transaction Illinois law also lets a county or municipality accept a builder/developer’s cash, letter of credit, or surety bond to guarantee completion of a site improvement. That local permit security is distinct from the contractor’s public works contract bond.[^2] ## Who Regulates Insurance in Illinois **Illinois Department of Insurance.** The Department licenses and oversees insurers and insurance producers doing business in Illinois, reviews regulated insurance activity, and investigates complaints about coverage, claims, premiums, and sales.[^3][^5][^4] - [Regulator website](https://idoi.illinois.gov/) - [License lookup](https://idoi.illinois.gov/companies/agent-lookup.html) - [File a complaint](https://idoi.illinois.gov/consumers/file-a-complaint.html) - Phone: (866) 445-5364 ### Surplus-Lines Tax and Stamping Office **Reported tax rate:** 3.5% of taxable premium plus a 0.04% stamping fee; separate 1% fire marshal tax on taxable fire premium When Illinois is the insured’s home state, the broker reports and remits a 3.5% tax on gross taxable surplus-line premium less returned taxable premium. The separate SLAI stamping fee is 0.04% for policies effective on or after January 1, 2023; a 1% fire marshal tax also applies to taxable fire premium.[^7][^6][^10][^11][^8] [Surplus Line Association of Illinois](https://www.slai.org/) **Illinois guaranty fund limits:** For covered claims against a member insurer, the Illinois Insurance Guaranty Fund generally caps its obligation at $500,000 per claim; workers’ compensation claims are excepted from that dollar cap. This fund does not protect policies issued by nonadmitted surplus-lines insurers. The net-worth exclusions apply to covered claims against member insurers.[^8] **Illinois FAIR Plan:** If you cannot obtain basic property coverage in the voluntary market, the Illinois FAIR Plan offers a residual-market option for eligible property. Check its current eligibility and coverage limits before relying on it for a commercial location.[^9] ## Providers With Documented State Licenses These providers publish a national listing for Surety bonds; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm that the product is available in Illinois; [check the regulator’s license lookup](https://idoi.illinois.gov/companies/agent-lookup.html) and confirm state availability for your business when requesting a quote. - [TechInsurance](/insurance-providers/techinsurance) — **Entity:** Specialty Program Group LLC; **role:** Insurance producer; **checked:** 2026-09-28. **Scope:** TechInsurance’s current licensing page names Specialty Program Group LLC / SPG Insurance Solutions and lists state license numbers, but labels Rhode Island “Individual licenses” rather than identifying a license for the named agency. RI is omitted because this disclosure does not establish agency authority there; this is a search limitation, not an assertion that the company is unlicensed. The remaining state entries are company-reported and are not an insurance product availability map.[^18] ## Questions to Ask Before You Buy in Illinois 1. Which solicitation, statute, and project category does the obligee say governs this contract? 2. What bond form, penal sum, obligee name, effective date, and filing deadline must the surety meet? 3. What indemnity, collateral, or personal guarantee would the surety require from the principal, and how could a claim affect the business? ## Surety Bonds in Illinois: FAQ ### Does the $150,000 rule apply to a private project? The Act addresses contracts for public work to be performed for the State or a political subdivision. A private owner’s contract bond requirement comes from the contract, not this public-works threshold.[^1] ### May a local government require a bond below $150,000? Through January 1, 2029, local governmental units may require a bond by ordinance or resolution for public works contracts valued at $150,000 or less.[^1] ## Surety Bonds in Other States - [Alabama](/coverage/surety-bonds/alabama) - [Alaska](/coverage/surety-bonds/alaska) - [Arizona](/coverage/surety-bonds/arizona) - [Arkansas](/coverage/surety-bonds/arkansas) - [California](/coverage/surety-bonds/california) - [Colorado](/coverage/surety-bonds/colorado) - [Connecticut](/coverage/surety-bonds/connecticut) - [Delaware](/coverage/surety-bonds/delaware) - [District of Columbia](/coverage/surety-bonds/district-of-columbia) - [Florida](/coverage/surety-bonds/florida) - [Georgia](/coverage/surety-bonds/georgia) - [Hawaii](/coverage/surety-bonds/hawaii) - [Idaho](/coverage/surety-bonds/idaho) - [Indiana](/coverage/surety-bonds/indiana) - [Iowa](/coverage/surety-bonds/iowa) - [Kansas](/coverage/surety-bonds/kansas) - [Kentucky](/coverage/surety-bonds/kentucky) - [Louisiana](/coverage/surety-bonds/louisiana) - [Maine](/coverage/surety-bonds/maine) - [Maryland](/coverage/surety-bonds/maryland) - [Massachusetts](/coverage/surety-bonds/massachusetts) - [Michigan](/coverage/surety-bonds/michigan) - [Minnesota](/coverage/surety-bonds/minnesota) - [Mississippi](/coverage/surety-bonds/mississippi) - [Missouri](/coverage/surety-bonds/missouri) - [Montana](/coverage/surety-bonds/montana) - [Nebraska](/coverage/surety-bonds/nebraska) - [Nevada](/coverage/surety-bonds/nevada) - [New Hampshire](/coverage/surety-bonds/new-hampshire) - [New Jersey](/coverage/surety-bonds/new-jersey) - [New Mexico](/coverage/surety-bonds/new-mexico) - [New York](/coverage/surety-bonds/new-york) - [North Carolina](/coverage/surety-bonds/north-carolina) - [North Dakota](/coverage/surety-bonds/north-dakota) - [Ohio](/coverage/surety-bonds/ohio) - [Oklahoma](/coverage/surety-bonds/oklahoma) - [Oregon](/coverage/surety-bonds/oregon) - [Pennsylvania](/coverage/surety-bonds/pennsylvania) - [Rhode Island](/coverage/surety-bonds/rhode-island) - [South Carolina](/coverage/surety-bonds/south-carolina) - [South Dakota](/coverage/surety-bonds/south-dakota) - [Tennessee](/coverage/surety-bonds/tennessee) - [Texas](/coverage/surety-bonds/texas) - [Utah](/coverage/surety-bonds/utah) - [Vermont](/coverage/surety-bonds/vermont) - [Virginia](/coverage/surety-bonds/virginia) - [Washington](/coverage/surety-bonds/washington) - [West Virginia](/coverage/surety-bonds/west-virginia) - [Wisconsin](/coverage/surety-bonds/wisconsin) - [Wyoming](/coverage/surety-bonds/wyoming) [Other Coverage in Illinois](/coverage/states/illinois) ## Sources [^1]: [Public Act 104-0168, amending the Public Construction Bond Act](https://my.ilga.gov/legislation/PublicActs/View/104-0168) — Illinois General Assembly; Section 5, amended 30 ILCS 550/1, especially effective-date clauses; Act effective June 1, 2027. Accessed 2026-09-28. [^2]: [Illinois Compiled Statutes, Public Construction Bond Act](https://www.ilga.gov/Legislation/ILCS/Articles?ActID=541&Chapter=FINANCE&ChapterID=7&MajorTopic=GOVERNMENT&Print=True) — Illinois General Assembly; 30 ILCS 550/3, builder/developer project-improvement security, especially subsections (a)–(b), pp. 138–150 in opened print view. Accessed 2026-09-28. [^3]: [Illinois Department of Insurance](https://idoi.illinois.gov/) — Illinois Department of Insurance; Official agency homepage and agency information. Accessed 2026-09-28. [^4]: [File a Complaint](https://idoi.illinois.gov/consumers/file-a-complaint.html) — Illinois Department of Insurance; Official insurance complaint intake and consumer phone. Accessed 2026-09-28. [^5]: [Agent Lookup](https://idoi.illinois.gov/companies/agent-lookup.html) — Illinois Department of Insurance; Department page explains use of Illinois SBS Lookup for agents, brokers, and business entities; Department home provides company license lookup. Accessed 2026-09-28. [^6]: [Calculating & Remitting Taxes: Surplus Line Tax](https://www.slai.org/docs/surplus-line-filing-taxes/remitting-taxes-surplus-line-tax/) — Surplus Line Association of Illinois; Current surplus-line tax applicability and rate. Accessed 2026-09-28. [^7]: [215 ILCS 5/445: Surplus line](https://www.ilga.gov/Documents/legislation/ilcs/documents/021500050K445.htm) — Illinois General Assembly; Subsections (3)(a), (12): tax and code applicability. Accessed 2026-09-28. [^8]: [215 ILCS 5: Illinois Insurance Guaranty Fund](https://www.ilga.gov/legislation/ILCS/details?ActID=1249&ActName=Illinois+Insurance+Code.&ChapAct=215+ILCS+5%2F&Chapter=INSURANCE&ChapterID=22&MajorTopic=REGULATION&Print=True&SeqEnd=165100000&SeqStart=159400000) — Illinois General Assembly; Article XXXIV: cap, net-worth exclusions, exceptions, and non-admitted insurer exclusion. Accessed 2026-09-28. [^9]: [Illinois FAIR Plan Association](https://www.illinoisfairplan.com/) — Illinois FAIR Plan Association; Plan overview and current eligibility information. Accessed 2026-09-28. [^10]: [Stamping Fees: Fee Calculation](https://www.slai.org/docs/surplus-line-filing-taxes/remitting-stamping-fees-fee-calculation/) — Surplus Line Association of Illinois; Current stamping fee 0.04% of premium for policies effective January 1, 2023 or later; may be passed to insured. Accessed 2026-09-28. [^11]: [50 Ill. Adm. Code § 2701.130: Taxes](https://www.ilga.gov/agencies/JCAR/EntirePart?titlepart=05002701) — Illinois Joint Committee on Administrative Rules; Surplus line producer pays 1% fire marshal tax on gross premiums less returned premiums for insurance subject to the Fire Investigation Act. Accessed 2026-09-28. [^12]: [Licenses](https://www.at-bay.com/licenses/) — At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21. [^13]: [Licenses and Carriers](https://www.coalitioninc.com/legal/licenses) — Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535.. Accessed 2026-09-22. [^14]: [Insurance Producer Licenses](https://www.corgi.insure/broker-licenses) — Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown.. Accessed 2026-09-28. [^15]: [About Hiscox US Insurance](https://www.hiscox.com/about-hiscox-insurance) — Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16. [^16]: [Licenses](https://www.nextinsurance.com/insurance-licenses/) — ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885.. Accessed 2026-09-28. [^17]: [About Risklytics](https://www.risklytics.ai/about/) — Risklytics; What we do; Who we insure; Licensing; Agency licenses table dated 2026-09-10. Accessed 2026-09-16. [^18]: [Insurance Licenses by State](https://www.techinsurance.com/legal/licenses) — TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number.. Accessed 2026-09-28. [^19]: [Licenses](https://www.vouch.us/legal/licenses) — Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict.. Accessed 2026-09-15. Updated 2026-09-28. This guide is informational and does not determine whether a policy is available or meets your needs. [Editorial policy](/editorial-policy). 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