IL State Farm collections vendor bonds.
From $100. Enter your amount.
A vendor that collects payments under a client contract on behalf of State Farm Mutual — recovering amounts owed under a subrogation, repair, or service arrangement — is handling funds that belong to State Farm and its customers before they are remitted. State Farm conditions that vendor relationship on a surety bond guaranteeing collected funds are properly remitted under the contract. Premiums cost 1% of the bond amount, $100 minimum; the application collects no credit information, and most applications approve instantly. Enter the amount your vendor agreement names and your exact price appears at the application.
Trusted by industry leaders
Apply to filed in 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 entire application — no financial statements, no credit section.
Pay & e-sign
Collections vendor bonds like this are among the thousands of bond types that issue right after purchase. The application collects no credit information, 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
One application, issued instantly.
These are the actual issuing fields — no credit section, because this application does not collect credit information.
Start the application →Common questions.
Other Illinois bonds.
Get your collections agreement active.
From $100, no credit section, bond issued the moment you pay. Enter the amount your agreement names. Free until issued.