Every Irrigation contractor in the State of Illinois needs to carry an Illinois Irrigation Bond. Learn more about these surety bonds, what they guarantee, what they cost and how to easily obtain one.
An Illinois Irrigation Contractor Bond guarantees that the contractor will uphold all the provisions of Illinois’ Administrative Code Title 77 Section 892. If a contractor breaks the code, a claim may be filed against the contractor and surety bond.
Among other things the codes requires that Irrigation or Sprinkler Contractors:
An Illinois Irrigation Contractor Bond must be in the amount of $20,000.
Per Illinois Code (225 ILCS 320/2.5), “(a) Every irrigation contractor doing business in this State shall annually register with the Department.”
Additionally, “On a form provided by the Department, every irrigation contractor must provide to the Department an indemnification bond. “
A person, other than a licensed plumber or licensed apprentice plumber, who installs or supervises the installation of lawn sprinkler systems subject to Section 2.5 of the Law.
All Irrigation Contractors in Illinois need to provide an Irrigation Bond.
An Illinois Irrigation Bond Costs $100 a year for most contractors. Better pricing is available for those with good credit or strong net worth. Keep in mind that this premium will be due each year that the surety bond remains in place.
Illinois Irrigation Bonds can be purchased instantly without credit checks. Simply fill out the information, pay the premium and print your bond.
All Illinois Contractor Irrigations Bonds expire on February 28th each year and must be renewed with a Contractor’s registration.
The Irrigation Contractor is the Principal on the Irrigation Bond. This is the party agreeing to install sprinklers systems according to Illinois Code. The Obligee is The State of Illinois Department of Public Health. This is the Party receiving the benefit of the Irrigation Bond. The Surety is the third party bond company that is guaranteeing that the Principal honors the code. If the Principal breaks the provisions of the code, the Surety may have to pay out on the Irrigation Bond.
Any person who has been financially harmed by the Contractor’s failure to follow Illinois’s Sprinkler Installation Code can give notice to the State, and the State will file a claim against the bond on that party’s behalf. The Surety and/or Principal agree to pay the state to correct the work.
The maximum amount the Surety is required to pay is $20,000, regardless of the amount or number of claims. However, the Surety’s payment does not relieve the contractor of responsponsibility. If the Irrigation Bond is not enough to cover the costs of correcting the work, the Contractor is still liable to the State for those costs.
Illinois Irrigation Contractor Bonds require indemnity by the Contractor. That means that if a Surety Bond Company does pay a valid loss, they can seek reimbursement from the Contractor and other indemnitors. Surety Bond Claims should be avoided at all costs. Contractors can read more about indemnity here.
The Surety Bond Company can cancel the Irrigation Bond at any time by providing 15 days written notice to the State. However, the Surety’s liability will remain in place for the time they were on the bond and during the 15 day notice period.
If the Surety Bond Company does cancel the bond, the Irrigation Contractor will need to replace the Irrigation Bond with another bond company to continue to operate in the State.
The State of Illinois does allow a contractor to post an Irrevocable Letter of Credit (ILOC) in Lieu of a Surety Bond. The ILOC must also be in the amount of $20,000. Additionally, the ILOC must meet the following requirements:
“funds shall be available only to the Department and shall be released upon written notification by the Department in the same amount for any work on lawn sprinkler systems performed by the registered irrigation contractor. The letter of credit shall be printed on the letterhead of the issuing financial institution, be signed by an officer of the same financial institution, name the Department as the sole beneficiary, and expire on February 28 of each year.”
Contractors may want to think twice before using an ILOC. An ILOC may be more expensive and it may tie up a contractor’s borrowing ability. Contractors can read more about Surety Bond vs. ILOCs here.
Illinois Irrigation Contractors may also need other surety bonds such as Performance Bonds, Payment Bonds, and Bid Bonds. These contract bonds have different guarantees, costs and underwriting from Irrigation Bonds.
Illinois Irrigation Contractor Bonds are required by State law. They are inexpensive and can be purchased by anyone instantly and without a credit check. For more information on Surety Bonds, visit our Learn Page and Surety Bond FAQ Page. The surety bond experts at Axcess Surety are available to help Illinois Irrigation Contractors with all their bond needs.
Obtain the Illinois Irrigation Sprinkler Contractor Bond Form below:
Illinois Irrigation Contractor Bond Form
Other Frequently Asked Questions
Yes. There are no credit checks required for these bonds and they can be purchased instantly.