Overview of Illinois Public Adjuster Bond Requirements
Applicants for a public adjuster license in Illinois are required to obtain a $20,000 public adjuster bond.
The bond must be filed with the state Department of Insurance as part of your license application process.
Why do I need a bond?
The purpose of this bond is to serve as a guarantee for your professional conduct and compliance with the provision of the Code of Illinois which applies to public adjusters.
If you violate these provisions, causing losses or harm to any person you have provided services for, that person may file a claim against your bond to secure compensation.
Initially during the claims process, the surety will investigate the matter and possibly extend compensation to claimants for as much as the full penal sum of the bond.
You can learn more about how bonds work and why you need one from our ‘What is a surety bond' guide!
In the following sections, you can learn more about the cost of your bond, how and why bond claims are filed, and how you can get bonded!
If you have any questions about this bond and prefer to speak to someone instead, call our bond experts at 866.450.3412!
How Much Does It Cost to Get an Illinois Public Adjuster Bond?
The cost of your bond, also known as the bond premium, is equal to a certain percentage of the total amount of your bond. Your surety determines your premium when you apply to get bonded, using the following several criteria.
Factors that determine your bond premium
Your personal credit score has the greatest influence on your bond rate.
Sureties look at credit score to assess the likelihood of a claim being brought against a bond. Usually, the higher an applicant's credit, the lower that likelihood is expected to be, and vice-versa.
For that reason, individuals who have excellent credit can typically expect to be offered a rate of .75% - 1.5% of the total amount of their bond. Those who have a slightly lower score, fall within the next category of rates which ranges between 1.5% to 5%. Finally, individuals who currently have a very low credit score are likely to get bonded at a rate between 5% and 15%.
Apart from an applicant's credit score, a surety will frequently also want to review additional information, such as:
- Personal and business financial statements
- Fixed and liquid assets
- Work experience and record
To get a rough sense of how much your public adjuster bond may cost, based solely on credit score, see the table below!
|Illinois Public Adjuster Bond Cost Based on Credit Score|
|Above 700||650-699||600-649||Below 599|
|Illinois public adjuster||$20,000||$150-$300||$200-$500||$500-$1,000||$1,000-$1,500|
What Can Give Rise To a Bond Claim?
Article XLV of the Illinois Insurance Code states that licensed public adjusters in the state must post a bond in a minimum amount of $20,000.
The purpose of the bond is to guarantee recovery to any person in the state who suffers any damages or losses due to a public adjuster's “erroneous acts, failure to act, a conviction of fraud, or conviction of unfair practices."
If a claim is filed against a bond, the surety that backs the bond investigates the case to determine whether the claim is well-founded. If it is, the surety must determine the appropriate amount of compensation to extend, within the limits of the total bond amount.
When a surety compensates a claimant, the bonded public adjuster must reimburse the surety in full. This is necessary because sureties never assume liability for claims brought against a bond. Ultimately, it is always the bonded party that remains liable.
How can you avoid giving rise to a claim? The best strategy to avoid dealing with the financial and reputational complications that arise with a claim is to always comply with all legal requirements of the Insurance Code!
How Can I Apply For a Bond?
To get started with your application, click on the banner below and complete our brief bond form. You will then receive a free quote on your bond, along with more information about the bonding process.
If you want to know more about the process of getting bonded or the purpose of surety bonds, call us at 866.450.3412 anytime!