Illinois State Farm collections vendor bonds.
From $100.
State Farm Mutual requires a vendor that collects payments on its behalf under a client contract to post a surety bond guaranteeing collected funds are properly remitted, in the amount the vendor agreement names. Premiums cost 1% of the bond amount, $100 minimum.
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How much does an Illinois State Farm collections vendor bond cost?
1% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
There is no state licensing queue in front of this bond — only your State Farm vendor onboarding. Here is the whole thing:
Apply online
Your business details, the bond amount your collections agreement names, and an effective date. That is the application. No credit check up to $250,000. Above that, the carrier may run a soft pull, which never affects your score.
Pay & e-sign
Collections vendor bonds like this are among the thousands of bond types that issue right after purchase. No credit check up to $250,000, and most applications approve instantly.
Send it to State Farm
Your executed bond and power of attorney arrive by email, ready to submit with the rest of your vendor onboarding packet. Wet-ink original mailed on request.
What it is and who needs it.
What the State Farm collections bond actually guarantees
State Farm Mutual — the insurance carrier — contracts with outside vendors to collect amounts owed under client agreements, including recovery work such as subrogation and third-party collection on the carrier’s behalf. A vendor doing that work is holding money that belongs to State Farm and its customers between the moment it is collected and the moment it is remitted.
That gap is exactly what this bond covers. The principal is your business, the surety is the carrier, and the obligee is State Farm Mutual — not a state agency. If a vendor fails to remit funds it collected under the contract, or otherwise breaches the collections agreement, State Farm can make a claim on the bond.
It is not insurance for you. A surety bond is a credit instrument: if the surety pays a claim, you reimburse the surety. State Farm sets the penal sum for each vendor agreement, and it should stay in force for the life of that agreement — a lapse can suspend your ability to collect on State Farm’s behalf, which is why we track the expiry and give you notice ahead of it.
You need this bond if you are
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
Pay & e-sign. Collections vendor bonds like this are among the thousands of bond types that issue right after purchase. No credit check up to $250,000, and most applications approve instantly.
What sets the price
The premium is 1% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $250,000. Above that, the carrier may run a soft pull, which never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued instantly.
These are the actual issuing fields. No credit check up to $250,000. Above that, the carrier may run a soft pull, which never affects your score.
Start the application →Common questions.
Other Illinois bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Get your collections agreement active.
From $100, no credit check up to $250,000, bond issued the moment you pay. Enter the amount your agreement names. Free until issued.