Bonds in Chicago, IL
Even the most well-prepared companies can face unexpected challenges. Mistakes, delays or unforeseen events can lead to financial losses for your company and the clients and partners who rely on you.
What Are Commercial Bonds? 
Commercial bonds, often distinguished as surety or fidelity bonds, can provide financial protection if your business fails to meet its obligations. Insurance companies typically issue these bonds to serve as a financial guarantee to third parties.
If your business is unable to fulfill a contract, violates a regulation, or an employee commits a dishonest act, the appropriate bond can compensate the affected party, helping you avoid costly lawsuits and maintain trust.
Common Types of Bonds for Illinois Businesses
Depending on your industry and the nature of your operations, your business may need one or more of the following:
- Surety bonds: These are often required for contractors and service providers. They help ensure that work will be completed as agreed. If not, the bond can cover the financial loss.
- License and permit bonds: Many Illinois municipalities and state agencies require these bonds to confirm that your business complies with local laws and regulations.
- Fidelity bonds: Also known as honesty bonds, these protect your clients from losses caused by fraudulent or criminal acts committed by your employees.
How Much Does a Bond Cost?
The premium is a percentage of the bond’s total value and is typically due annually. Costs vary according to the nature of the contract and the risk associated with issuing the bond.
Need Help Choosing the Right Bond?
At Salvador Insurance Agency, we help Illinois businesses get necessary bonds. Whether you’re looking for surety and fidelity bonds, need help understanding commercial bond rates or want to know how to buy commercial bonds, our team is here to help.
Contact us today to learn how bonds can help protect your company’s financial stability.