Illinois EMPLOYERS AND OPERATING ENGINEERS LOCAL 520 HEALTH AND WELFARE FUND Bond
Overview
Employers who participate in the Operating Engineers Local 520 Health and Welfare Fund need this bond to guarantee their contributions are made on time and in full. It protects the fund — and the union members who depend on it for health and welfare benefits — against losses caused by employer default. If contributions go unpaid, the bond gives the Fund a financial remedy without litigation delays. This is a labor-relations compliance requirement, not a general business license.
Who Needs This Bond?
Contractors and employers in Illinois who have signed a collective bargaining agreement with Operating Engineers Local 520 are the principal on this bond. If your CBA obligates you to make contributions to the Local 520 Health and Welfare Fund, you are required to post this bond. It applies regardless of your company size — what matters is your signatory status with the union. If you've been notified by the Fund or your union rep that a bond is required, this is the one.
What is this Bond For?
Participating employers make periodic contributions to the Operating Engineers Local 520 Health and Welfare Fund on behalf of their covered workers. This bond guarantees those contributions will be paid as required under the applicable labor agreement. If an employer fails to remit contributions, the Fund can make a claim against the bond to recover what is owed. It is a financial backstop that keeps benefit coverage intact for union members even when an employer falls behind.
When is it Required?
Signing or renewing a collective bargaining agreement with Operating Engineers Local 520 that requires health and welfare fund contributions is the moment this bond becomes mandatory. The Fund or the union will typically notify signatory employers of the bonding requirement as part of agreement compliance. Some employers are required to post the bond before they are permitted to dispatch union labor on a job. Do not wait for a delinquency notice — get the bond in place when you sign your CBA.
Where Does it Apply?
This bond is a statewide Illinois requirement tied to the collective bargaining obligations of Operating Engineers Local 520. It is held by or filed with the Operating Engineers Local 520 Health and Welfare Fund as the obligee. It does not correspond to a state government license — its authority comes from the labor agreement itself.
How to Buy Online
Click 'Buy This Bond Online' on this page and the secure surety portal will open in a new tab. Enter your employer information, complete the application, and proceed through checkout. Your bond documents are issued through the portal — no phone calls, no agent callbacks required.
Why Bond Titan?
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