Naperville Utility Deposit Bond

Enter the business name to obtain a quote:

Naperville Utility Deposit Bond: A Comprehensive Guide

This guide provides information for insurance agents to help their customers obtain a Naperville Utility Deposit bond.

At a Glance:

  • Average Cost: Between 2% to 7.5% of the bond amount per year based on the applicant’s credit
  • Bond Amount: Determined on a case-by-case basis (more on this later)
  • Who Needs it: Commercial customers seeking to activate utility services in Naperville, Illinois
  • Purpose: To ensure utility companies receive compensation for financial harm if the business fails to pay their utility bills
  • Who Requires a Utility Deposit Bond in Naperville: Naperville Electric and Water Utilities
Naperville Utility Deposit Bond Form
Naperville Utility Deposit Bond Form


Naperville Code 8-1C-3 requires all utility customers to pay a security deposit before initiating service. The Naperville City Council enacted the security deposit requirement to ensure the city does not suffer financial harm if utility customers do not pay their bills. In lieu of depositing cash, the city allows commercial customers to purchase and maintain a surety bond.

What is the Purpose of the Naperville Utility Deposit Bond?

Naperville requires commercial customers that do not wish to pay a security deposit to purchase a surety bond as a prerequisite to obtaining utility services. The bond ensures that the city will receive compensation for financial harm if the business fails to comply with the provisions laid out in the bond form. Specifically, the bond protects the utility company if the business does not pay their monthly bills. In short, the bond is a type of insurance that protects utility companies if the business fails to remit all required payments.

How Can an Insurance Agent Obtain a Naperville Utility Deposit Surety Bond?

BondExchange makes obtaining a Naperville Utility Deposit bond easy. Simply login to your account and use our keyword search to find the “utility” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.

At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

Not an agent? Then let us pair you with one!

BX Agent Finder Link

Click the above image to find a BX Agent near you

How is the Bond Amount Determined?

Naperville Code 8-1C-3 dictates that the bond amount must equal twice the location’s estimated (as determined by the city) monthly bill based on its usage history or that of similar locations. All deposits/bonds must be at least $150.

Is a Credit Check Required for the Naperville Utility Deposit Bond?

Surety companies will run a credit check on the applicant to determine eligibility and pricing for the Naperville Utility Deposit bond. Applicants with excellent credit and work experience can expect to receive the best rates. Applicants with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the applicant’s credit.

How Much Does the Naperville Utility Deposit Bond Cost?

The Naperville Utility Deposit bond can cost anywhere between 2% to 7.5% of the bond amount per year. Insurance companies determine the rate based on a number of factors, including your customer’s credit score and experience. The chart below offers a quick reference for the approximate bond cost on a $10,000 bond requirement.

$10,000 Utility Deposit Bond Cost

Credit Score* Bond Cost (1 year) Bond Cost (1 month)
800+ $200 $20
650 – 799 $500 $50
600 – 649 $750 $75

*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.

Who May Purchase the Naperville Utility Deposit Bond?

Commercial utility customers in Naperville that do not wish to pay a cash deposit may purchase a surety bond to initiate service.

Naperville Utility Deposit Bond

BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.

How do Businesses Obtain Utility Services in Naperville?

Businesses in Naperville must navigate several steps to obtain utility services. Below are the general guidelines, but applicants should contact the city’s finance department for details on the process.

Step 1 – Create an Account

Businesses must create an account with the city’s help center before requesting service.

Step 2 – Request Service

Once their account is created, businesses may request utility services online here.

Step 3 – Purchase a Surety Bond or Deposit Cash

Finally, businesses must either purchase a surety bond or deposit cash (limits outlined above).

How Do Naperville Utility Customers File Their Bonds?

Utility customers in Naperville should submit their completed bond forms, including the power of attorney, to the city’s finance department located at the following address:

400 S. Eagle St.
Naperville, IL 60540

The surety bond requires signatures from the surety company that issues the bond, the customer, and witnesses for both parties. The surety company will include the following information on the bond form:

  • Name of the entity/individual(s) buying the bond
  • Surety company’s name and state of incorporation
  • Entity requiring the bond
  • Bond amount
  • Date the bond is signed

What Can Utility Customers in Naperville Do to Avoid Claims Against Their Bonds?

To avoid claims on their bonds, utility customers in Naperville must ensure they pay their utility bills on time and in full.

What Other Insurance Products Can Agents Offer Utility Customers in Naperville?

Naperville only requires businesses to be bonded. As such, agents can offer their customers general business and liability insurance in addition to the utility deposit bond. Bonds are our only business at BondExchange, so we do not issue liability insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.

Should Your Customer Purchase a Surety Bond or Deposit Cash?

Surety bonds are generally considered the better option for businesses, as they free up working capital that would otherwise have to be deposited with the utility company. For more information on whether your customer should purchase a bond or deposit cash, check out our Surety Bonds vs. Letters of Credit article here.

Naperville Utility Deposit Bond