General Contractor Insurance in Illinois

Do Illinois general contractors need insurance?

The Prairie State has a flourishing construction industry. There are over 92,380 sole traders working in the field and many of them are licensed as general contractors. Insurance for contractors for Illinois tradespeople helps protect many of these small-scale businesses.

Construction sites can be hazardous locations to work in. An accident could lead to an expensive liability problem for small-sized businesses. Contractor insurance in Illinois protects your business from accidents, delays or other issues.

Insurance for contractors is a simple term for different types of coverage a general contractor could think about.

• General Liability
• Business Owner’s Policy
• Workers’ Compensation

Learn how BizInsure can help you find the right contractor insurance for your Illinois company.

What are the most common insurance policies for contractors in Illinois?

Illinois tradespeople consider several types of insurance for contractors. These insurance policies can help you mitigate the common risks that general contracting companies face.

General Liability Insurance

A construction site is a place where anything can happen. An act that seems innocent, like placing your toolbox in the wrong location, could cause a major problem for your business if you injure anyone.

Also referred to as Commercial General Liability (CGL) or “slip and fall coverage”, General Liability insurance can protect your business against bodily injury or property damage lawsuits from outside parties. Illinois Contractors General Liability insurance can help protect your bank account by covering your legal costs, as well as the cost of fixing the situation (up to the limits of the policy).

Business Owner’s Policy

When you are in the construction business, things don’t always run smoothly. Broken equipment, incomplete projects and other problems can make it difficult to meet the deadlines you set.

A Business Owner’s Policy (BOP) is a combination of policies, combining covers such as General Liability insurance and business personal property coverage, to help protect small businesses from costly interruptions to service. BOPs can be customized to meet the requirements of your company. This can be a convenient and cost-effective way to protect yourself against many common risks that general contractors face.

Workers’ Compensation Insurance

If you depend on employees to help manage your company, it’s your responsibility to look after their health and well-being while they are at work.

Workers’ Compensation insurance protects your company and its employees. If any of your employees get injured at work or are ill, this type of insurance will cover their medical bills. It will also cover some of their lost income if they’re unable to work because of the injury, as well as rehabilitation or physical therapy to transition the employee back into the workplace.

Illinois’ law requires most businesses to carry Workers’ Compensation coverage with very limited exceptions. However, employers in hazardous occupations, such as construction or a business operating at construction sites, must have Workers’ Compensation insurance even if they are sole proprietors.