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Contractors Insurance in Illinois

Understanding Illinois Contractor Insurance Essentials

General Contractor Insurance in Illinois

Do you need contractor insurance in Illinois? What happens if an electrical contractor overloads a circuit and causes a house fire?

Who pays for the repairs if they don’t have adequate liability insurance in place?  

Imagine a framing contractor’s truck strikes a minivan while delivering supplies.

Does their personal auto insurance cover the commercial vehicle? 

What if a customer sues for shoddy ceramic tile installation that allows water intrusion issues? Who pays massive legal fees and settlements without contractors insurance?  

Unless insured, a contractor has to pay massively out-of-pocket. On the other hand, the right business insurance coverage transfers such risks to insurers instead.

This allows construction company owners to stop worrying and focus on daily field operations with confidence.

Every savvy building contractor partners with an independent insurance agent to safeguard their assets and comply with state laws.

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Why Illinois Contractors Insurance Matters?

Make no mistake – operating without adequate insurance as an Illinois contractor or builder opens you up to massive financial risk capable of totaling your business.

Going without proper insurance also hampers contractors. This results in:

  • Inability to bid on many commercial jobs lacking insurance certificates
  • Failure to comply with state licensing insurance minimum
  • Loss of access to qualified subcontractors who demand protection
  • Putting business assets at risk lacking coverage for offices, warehouses, and job sites

Don’t jeopardize your company’s future over insufficient insurance!

The licensed Illinois agents at The Allen Thomas Group simplify gaining comprehensive, affordable construction insurance.

Table of Contents

Getting The Right Coverage

Types of Business Insurance in Illinois for General Contractors

General Liability Coverage 

The most essential coverage for any small business owner is a general liability policy. This insurance can protect contractors against costly third-party bodily injury and property damage.

Illinois general liability insurance can help cover legal fees plus damages awarded from situations like:

  • A framing subcontractor’s stray roofing nail piercing underground gas lines.
  • An HVAC technician accidentally cut power to an entire office floor on a wiring job.
  • A customer slipped on ice outside a contractor’s warehouse and suffered injuries.

An independent insurance agent can help tailor general liability insurance in Illinois to fit your unique business model and exposure.

Commercial Property Insurance

This Illinois business insurance policy protects contractor business properties like offices, warehouses, storage yards, and showrooms from covered losses, including fire, vandalism, theft, and storm damage.

This insurance protects larger contractors with significant real estate assets.

It can be expanded using an endorsement called “Business Income” insurance that pays lost profits if properties become unusable due to property damage.

Builders Risk Insurance

For contractors engaged in construction projects, builder’s risk insurance can provide coverage against damage to structures while being constructed and theft of materials during this period.

Commercial Auto Insurance

Construction companies owning one or more vehicles registered commercially need commercial auto insurance in Illinois.

It works similarly to personal auto coverage but offers higher liability limits following cars and trucks used for business regardless of who is driving them.

Key reasons general contractors in Illinois secure commercial auto policies:  

  • At-fault accidents involving company pickup trucks traveling between jobs
  • Employee vehicle collisions during supply delivery run 
  • Overnight theft of work vans loaded with thousands of tools  

In addition to these significant coverages, Illinois general contractors also obtain specialty insurance options.

This type of insurance provides protection for everything fueling your company’s livelihood from the many threats in the construction realm. Insurance helps safeguard your assets.

Workers Compensation Insurance  

All general contractor businesses with employees are required to carry workers’ compensation, including part-time staff, per Illinois law.

This critical Illinois business coverage pays lost wages, hefty medical bills, and long-term support costs if employees sustain injuries on the job:

  • A roofer falling from faulty scaffolding on a job site
  • An electrician suffering electrical burns rewiring a factory  
  • Back injuries from repeated heavy lifting reported by crew members   

Skirting mandatory Illinois workers compensation laws leaves business owners liable while failing vulnerable employees when accidents inevitably occur. Business owner’s insurance is critical to protect your business.

Tools and Equipment Insurance

This inland marine insurance policy covers expensive contractor equipment and tools used on job sites or daily operations against common risks like theft, collisions, flood, and other weather damage.

It is especially useful for HVAC, plumbing, and electrical contractors investing in costly gear to deliver specialized trade services.

It often includes an appraisal of equipment values and no depreciation or deductible in the event of total losses.

Errors and Omissions Insurance 

This is crucial for different types of independent contractors who work in different professions, such as architects, engineers, sustainability consultants, and some general contractors involved in design-build projects.

This insurance is essential in Illinois for contractors that protect against pricey liability claims alleging costly errors, omissions, or negligence in contractually obligated professional services. 

As more construction firms offer in-house design, E&O protection helps safeguard this emerging liability exposure area unique to the building trades.

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Comparing General Contractor Insurance in Illinois

Cheap Illinois Contractor Insurance

Skimping on liability limits or raising deductibles to save money on premiums can backfire massively if claims later exceed caps. 

That’s why The Allen Thomas Group urges setting limits based on factors like:

  • Average project size – Larger builds may justify higher liability limits.
  • Number of subs – More contractors equals more exposure.
  • Past losses – Previous claims could support increased limits.  
  • Equipment values – Insure machinery, tools, and vehicles are at full replacement cost.
  • Gross revenues – Income growth over time warrants rising limits.
  • Total assets – Added buildings or warehouses may necessitate boosting property insurance limits.

Properly insuring heavy equipment, project works in progress, and other elements vital to construction businesses at accurate values ensures being made whole again after a loss. 

Understanding Exclusions & Gaps 

In addition to adequate limits, Illinois contractors must review policies for subtle exclusions that leave them exposed.

Examples include: 

– Gradual concrete or foundation settling damage is often excluded under CGL policies. 
– Most policies won’t cover faulty workmanship without added products/completed operations coverage.
– Standard workers’ compensation insurance excludes company owners and officers who need separate policies.
– Equipment coverage often excludes normal wear and tear and mechanical breakdown.

Read the fine print, ask questions, and work with an independent agent to plug gaps!

The bottom line? 

Work with the insurance experts at The Allen Thomas Group to ensure you’ve got the coverage your company requires to tackle big and small projects with confidence. 

General Contractor Insurance in Illinois
Stress-free Solutions

Illinois Insurance Requirements for Contractors

Illinois Business Insurance

 To legally operate, Illinois building contractors must carry specific minimum types and levels of insurance. This includes:

General Liability Insurance Policy
– $500,000 minimum per occurrence
– $1 million aggregate policy limits

Workers’ Compensation 
Illinois requires workers comp for all employees.

Auto Insurance
– Legally required minimums when registering vehicles commercially

In addition, contractor licensing bonds and exams are mandatory for some businesses in Illinois.

Failing to meet insurance rules and carry proof of coverage can open contractors to heavy fines or inability to perform work.

The Allen Thomas Group demystifies regulations across Illinois! Our agents explain legal rules in plain terms while securing necessary coverage so you can confidently run daily field operations.  

Insurance Solutions Customized For You Contractors

Yes, Getting A Certificate Of Insurance Is Really That Easy

We know how frustrating and complex the process of finding the right insurance can be and how it slow down your ability to take care of your customers especially when you are waiting for bonds or a Certificate of Insurance (COI).

Let us help fix it for you.

Step 1: Assess

Tell us about your specific needs and we will find the right policy for you.

Step 2: Review

Review the results of our search.

Step 3: Service

We will walk you through your new policy step by step.

Our happy customers

We’ve helped thousands of Illinois Businesses Just Like You

Our Carrier Partners

WE HAVE PERSONAL CONTACTS WITH THESE TRUSTED A-RATED INSURANCE COMPANIES

That allows us to find the best rates for your construction business

Why Contractors in Illinois Choose The Allen Thomas Group

Sifting through the wide range of contractor insurance options can prove extremely challenging. 

For 25+ years, The Allen Thomas Group has worked closely with general contractors, subcontractors, home builders, and construction trades across Illinois to provide tailored insurance solutions protecting their assets and livelihoods.

Our agents thoroughly comprehend state compliance rules, bidding risk transfer requirements, and the unique exposures faced by running contracting businesses in the Land of Lincoln.  

The Allen Thomas Group also maintains strong relationships with highest-rated construction insurance carriers to provide you with the appropriate insurance cover in Illinois.

This enables us to match contractors with ideal policies featuring robust, specialized protection at competitive rates. We put our buying clout to work, negotiating discounts only available via independent channels.

Illinois contractors can be confident in The Allen Thomas Group’s industry expertise, guiding them to customized commercial insurance packages meeting their risk profiles and budgets.

We offer general liability insurance and all forms of coverages needed by your business to stay afloat in trying circumstances.

The Allen Thomas Group caters to your insurance needs and is happy to provide a certificate of insurance as proof so your customers can confidently do business with you.

Apply for an insurance quote today!

 

Contractors Liability FAQs

Get More Insights On Making The Right Insurance Decision For Your Company

Mandatory:

    • Workers’ compensation insurance
    • Contractors general liability insurance

Recommended, but not mandatory:

    • Commercial auto insurance
    • Builder’s risk insurance
    • Professional liability insurance
    • Business interruption insurance

The “minimum insurance” refers to the recommended general liability insurance coverage for Illinois contractors.

This is $1 million per occurrence and $2 million aggregate for bodily injury and property damage.

However, higher limits may be required by clients or project specifications.

Full contractor insurance coverage isn’t defined, but a comprehensive package for contractors typically includes:

    • General liability coverage with adequate limits
    • Workers’ comp insurance 
    • Commercial auto insurance
    • Builder’s risk insurance (for large or high-risk projects)
    • Professional liability insurance

Consider additional common insurance options like business interruption, commercial umbrella insurance, and cyber liability insurance.

The insurance cost in Illinois varies based on a range of factors, such as business type, size, experience, coverage chosen, and deductibles.

Expect to pay hundreds to thousands of dollars per year for basic coverage, with significant increases for additional coverage and higher limits.

The commission resolves disputes between employees and employers about work-related injuries.

We Provide Coverage Options For All Trades Listed Below

  • Appliance Repair
  • Carpenter
  • Concrete Contractor
  • Drywall Contractor
  • Electrician
  • Excavation
  • Fence Installation
  • Flooring Contractors
  • General Contractor
  • HVAC Contractor
  • Handyman Services
  • Home Renovation and Remodeling
  • Landscaper
  • Masonry
  • Painter
  • Paving Contractor
  • Plumber
  • Roofing Contractor
  • Sheet Metal Contractor
  • Snow Plowing
  • Utility Contractor

Illinois Cities We Serve

Addison

Algonquin

Alsip

Alton

Arlington Heights

Aurora

Avon

Bartlett

Batavia

Belleville

Bellwood

Belvidere

Bensenville

Benton

Berwyn

Blackberry

Bloom

Bloomingdale

Bloomington

Bloomington City

Blue Island

Bolingbrook

Bourbonnais

Bradley

Bremen

Bridgeview

Bristol

Brookfield

Buffalo Grove

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Calumet

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Campton

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Carbondale

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Carpentersville

Cary

Champaign

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Charleston

Chicago

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Cicero

Collinsville

Crest Hill

Crystal Lake

Cuba

Cunningham

Danville

Darien

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Deerfield

DeKalb

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Dixon

Dolton

Dorr

Downers Grove

Dundee

Du Page

East Moline

East Peoria

East St. Louis

Edwardsville

Ela

Elgin

Elk Grove

Elk Grove Village

Elmhurst

Elmwood Park

Evanston

Evergreen Park

Fairview Heights

Frankfort

Franklin Park

Freeport

Fremont

Galesburg

Galesburg City

Geneva

Glendale Heights

Glen Ellyn

Glenview

Godfrey

Grafton

Granite City

Grant

Grayslake

Groveland

Gurnee

Hanover

Hanover Park

Harlem

Harvey

Hickory Point

Highland Park

Hinsdale

Hoffman Estates

Homer

Homer Glen

Homewood

Huntley

Jacksonville

Joliet

Kankakee

La Grange

Lake Forest

Lake in the Hills

Lake Zurich

Lansing

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Leyden

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Limestone

Lisle

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Macomb

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Maine

Marion

Matteson

Mattoon

Maywood

McHenry

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Milton

Mokena

Moline

Montgomery

Moraine

Morton

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Mount Prospect

Mundelein

Naperville

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Niles

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Nunda

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Oak Park

O’Fallon

Orland

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Oswego

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Palatine

Palos

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Park Forest

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Pekin

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Plainfield

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Proviso

Quincy

Rich

Rockford

Rock Island

Rolling Meadows

Romeoville

Roselle

Round Lake

Round Lake Beach

Rutland

Schaumburg

Shields

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Springfield

St. Charles

St. Clair

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Vernon

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York

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Zion