When you are a contractor, you always strive to exceed the expectations of your clients, whether it is a simple renovation, rebuilding, plumbing, or lighting installation project. But even for the most experienced contractors, accidents at one point may be inevitable. When such unfortunate events occur, you need an insurance policy in place to assist in maintaining the reputation of your business and safeguard the assets you have worked tirelessly to acquire.
For a contractor, you must create your policy and bundle it up with other insurance products to obtain an ideal cover for your work. In this article, we will discuss the most fundamental contractor insurance Illinois products you must acquire and some of the leading companies that offer these policies:
Below are some insurance requirements for Illinois contractors:
Public liability insurance–Contractors must provide a certificate of insurance that covers public liability. The coverage should be at least $100,000 per person and $300,000 per accident. This ensures that in case of any injury to individuals, there is sufficient coverage to compensate them adequately.
Property damage insurance–Contractors are also required to have property damage insurance. The minimum coverage amount should be $50,000, with a limit of no less than $10,000 for each accident. This insurance helps if any property is damaged during the construction process
Bonding–Surety bonds may be necessary for certain projects, with a bond amount of $10,000, offering clients financial protection if contractors fail to meet contractual obligations
Workers' compensation insurance–Illinois law requires most employers, including independent contractors, with employees to hold workers' compensation insurance. Workers' compensation insurance benefits personnel who sustain injuries or illnesses on the job. Employers who willfully fail to provide workers' compensation insurance may face penalties of up to $500 per day, with a minimum fine of $10,000
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $2,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $2,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $300,000/$1,000,000 | $300,000 | $100,000 | $100,000 | $1,000,000 |
| Waiver of subrogation included? | Yes | No | Included | Can be included | No |
| Hired/non-owned auto liability coverage included? | Yes | No | No | Can be included | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Can be included | Can be included |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 | $0 | $0 |
General liability insurance is a fundamental policy for contractors who operate in Illinois. It protects your contracting business from financial losses due to lawsuits or claims filed by third parties. It covers common liabilities such as property damage, personal injury, bodily injury, or advertising claims. But the policy can have some limitations and exclusions, so you must critically evaluate the policy terms.
Bodily injury–A customer or passerby can sustain physical harm when on your premises. This policy will cover all the hospital bills and legal defense costs.
Property damage–Your operations may cause damage to a customer's property; the coverage will reimburse replacement or repair costs.
Personal injury–Slander, defamation, and libel claims
Installation floater–If your contracting business involves working with valuable equipment, you need this add-on to cover these items in the installation process
Umbrella liability insurance–This coverage offers extra coverage that is beyond the limits of your general liability insurance. It offers protection for large claims
When choosing the appropriate coverage limit for your contracting business, you need to select an amount that aligns with the size and nature of your business. However, you can be paid $1 million to $2 million for a single occurrence and up to $5 million for all incidents in a policy period.
| CoverWallet | NEXT | Thimble (Best) | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $1,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $2,000,000 |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | Yes | Can be included | No |
| HIPAA coverage included? | No | No | No | No | No |
| Sexual misconduct coverage included? | No | No | No | No | Can be included |
| License defense coverage included? | No | No | No | No | Can be included |
| Deductible | $500 | $500 | $500 | $50/$10,000 | $500 |
You must acquire professional indemnity insurance if you offer design, consultation, or any other professional service in your contracting business. This will cover claims made by clients who are not content with your work. It typically cushions your business from claims related to professional errors, negligence, or omissions.
You untimely cancel or fail to honor an agreement, and your clients suffer massive losses
Your employees make a mistake when designing a building, the structure is erected wrongly, and your client must incur high costs to redesign the structure
You offer clients misleading construction information leading to financial repercussions.
You make a mistake when procuring construction materials, and your clients suffer significant losses
Abuse and molestation coverage–This add-on safeguards your contracting business from allegations of molestation and abuse
Cyber liability insurance–This add-on will cover all liabilities arising from unauthorized access to your sensitive data. It will pay for notification costs, legal costs, and all damages
After a customer sues you for professional omissions or negligence, your insurance company will pay $1 million to $5 million for each occurrence. The aggregate limits in one policy period can be up to $10 million.
Get all the best quotes from leading providers in a click of a button!
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $260,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Contents coverage limit (minimum) | $50,000 | $22,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/10,000 | Included | Excluded |
| Money and securities | Excluded | $2,500 | $1,000 | Included | Excluded |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Business interruption floater | Excluded | Included | Included | Included | Excluded |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Excluded |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Included | Excluded |
You must have physical structures, inventory, and equipment to operate a contracting business successfully. Your physical assets are integral to running your operations; you must shelter them from various incidents. Commercial property insurance covers perils such as:
Fire
Burst pipes
Earthquakes
Floods
Theft
Vandalism
An unauthorized person breaks into your construction business and steals your property.
A fire erupts and causes damage to partial or total business properties
An earth tremor occurs and leads to the collapse of your buildings
Unauthorized personnel vandalizes your building and destroys your equipment
Builders risk insurance–If you are constructing a new building or renovating an old one, you need this add-on to cover the property you are working on. It shelters any damage that may occur during your operations
Installation floater–If you work with valuable materials or equipment which belong to another party. This add-on offers coverage for these items
Your physical structure can be covered with an average of $10,000 to $60,000, but the coverage will range depending on the exact value of your property.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $260,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Contents coverage limit (minimum) | $50,000 | $22,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/10,000 | Included | Excluded |
| Money and securities | Excluded | $2,500 | $1,000 | Included | Excluded |
A business owner's policy is a convenient and cost-effective option for your construction business. With this policy, you can manage two or three policies as one. Most BOPs combine business interruption, property, and general liability policies.
Someone is injured while inspecting the construction site or when delivering construction materials.
Someone vandalizes your business property and causes significant damage to your assets
Claims of libel are made against your construction business
One of your employees damages a client’s laptop or any other property
Flood insurance–If you suspect your area is prone to flooding, this add-on will cover building repair or reconstruction costs
Commercial crime insurance policy–This add-on protects your construction business against any dishonest actions committed by your employees
After an incident occurs, you will be reimbursed a certain amount, whether the destruction of your property or bodily injury to third parties. Typically, you will be paid up to $2 million for your liability coverage and up to $5 million for your property coverage.
| NEXT | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|
| Aggregate limit | $3,000/$10,000 | $2,500/$5,000 | $15,000/$25,000 | $5,000-$10,000 |
| Covers hired and borrowed equipment? | $3,000/$10,000 | $2,500/$5,000 | No | Yes |
| Miscellaneous equipment also covered? | $5,000/$10,000 | No | Yes | Yes |
| Offered as an endorsement to general liability insurance? | Yes | Yes | Yes | Yes |
| Deductible | $500 | $500 | $0 | $0 |
Contractors work with different tools, machinery, and equipment to help in their work. When these assets are damaged or lost, you may go at a loss; therefore, covering them is essential. A tools and equipment insurance policy is the cover you need to get.
The tools and equipment insurance policy can be useful in different situations. They include;
Theft or burglary of your tools and equipment
Vandalism of your tools and equipment
Operator error
Upset
Lightning and electrical surges
The coverage limits tend to vary. Typically, most insurance companies determine the limits based on the total value of your tools and equipment. Therefore, the insurers assess what your tools and equipment are worth to determine the coverage limits they will offer you.
There are some add-ons you can have to enhance your coverage. They include:
Inland marine coverage helps extend the coverage to cover your tools and equipment outside the contractor's premises.
Rented or borrowed tools and equipment coverage reimburses the owner of tools you hire or borrow sustain damage due to fire, theft, vandalism, and other covered perils
Commercial auto insurance covers vehicles that you use in the course of your business operations. As you transport and haul your equipment, you must insure your vehicles against instances that may cause your contracting business to suffer monetary loss. This policy covers:
Damages to your commercial vehicle
Accidents that your commercial vehicle caused
Injuries of the driver and passengers of your commercial vehicle
Damages that an uninsured/underinsured motorist caused
There are some add-ons you may need for extra coverage. They include:
Comprehensive coverage helps cover your car against non-collision accidents such as fire, vandalism, and theft
Rental reimbursement coverage helps reimburse the cost of renting a vehicle when your work vehicle is out of service
Excess liability insurance provides additional coverage to your primary insurance policies, such as general liability insurance. This protects you from financial losses exceeding your primary insurance coverage limits.
Suppose a $1 million bodily injury lawsuit is filed and you only have a $500,000 general liability policy. In such a case, excess liability insurance can cover the remaining $500,000.
The coverage limits of the policy differ depending on the provider. The limit is typically high and can range from $5 million.
It is an insurance policy covering work-related injuries they may suffer when you do your contracting job. The policy can also provide medical benefits and cover any lost wages employees may incur when injured or ill as they perform their duties.
The policy is helpful for specific incidences, such as:
Physical injuries when constructing or renovating a building
Occupational illnesses that can occur due to exposure to dust or building materials such as cement. However, the policy will not cover existing illnesses
Medical treatment and rehabilitation after the occurrence of an accident
For extra coverage, you may need the following add-ons. They include:
Employer's liability coverage protects against lawsuits filed by employees who got injured or sick while working
Occupational accident coverage is an add-on helping to cover your employees when they are working outside the regular job site
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| General liability insurance | $36 | $432 | $0-$500 |
| Professional liability insurance | $55 | $660 | $1,000-$2,000 |
| Commercial property insurance | $69 | $828 | $1,000-$2,000 |
| Business owner's policy | $84 | $1,008 | $1,500 |
| Tools and equipment insurance | $39 | $468 | $500-$1,000 |
| Commercial auto insurance | $53 | $636 | $500-$1,000 |
| Workers compensation insurance | $92 | $1,104 | $2,500-$5,000 |
| Excess liability insurance | $41 | $492 | $500-$1,000 |
General contractor insurance Illinois is $36 per month or $412 per year for a $1 million general liability policy. But large construction businesses that are exposed to more risks must pay a higher cost for adequate coverage. Here’s a table showing the cost of a $1 million general liability insurance from the best companies:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $18 | $216 | Fastest general contractor insurance in Illinois for your construction business |
| The Hartford | $21 | $252 | Workers' compensation insurance for small and large contractors |
| CoverWallet | $24 | $288 | Comparing contractor insurance quotes online |
| Tivly | $27 | $324 | Comparing contractor insurance quotes over the phone |
| Thimble | $30 | $360 | Contractors looking for project-based insurance coverage |
| Hiscox | $32 | $384 | Contractors with specialized insurance coverage needs |
Get all the best quotes from leading providers in a click of a button!
As a contractor, you must be backed up by a reliable insurance brokerage firm or company. Here is a review of some well-known companies that offer contractors in Illinois comprehensive coverage for their businesses.
Best overall
Issues an online proof of insurance instantly
Fastest general liability insurance
Great customer service and reputation
Excellent rates
Outstanding value for money
Get a 10% discount if you buy two or more policies
Couldn’t find any
NEXT offers multiple insurance components for contractor businesses. You can purchase professional liability, tools and equipment, general liability insurance, and more. This company is known for having excellent financial capabilities and was rated an A- by AM Best. You can easily acquire any policy you wish for your business on their virtual platform.
Best for: Fastest general contractor insurance in Illinois for your construction business
Average cost: $18 per month
Our rating: 10/10
Resolves claim disputes very fast
Have been offering insurance products for many years
Offers excellent benefits on their worker's compensation insurance
Limited add-ons to general liability insurance
The Hartford has a positive track history of offering various businesses insurance products. They offer a wide array of insurance products for all types of contractors. Multiple programs are included in their workers' compensation policy to help you avoid occupational-related injuries.
Best for: Workers' compensation insurance for small and large contractors
Average cost: $21 per month
Our rating: 10/10
Partnered with reputable insurance carriers to offer you the best deals
They have an online platform where you can easily manage policies
You can easily compare quotes from different providers using their online comparison tool
They are a brokerage firm and have no direct control of the insurance policies they sell
CoverWallet connects you to your ideal insurance carrier. On this digital marketplace, you select policies from a variety of providers. Using their comparison tool, you can decide which insurance company suits your business needs. This company has been rated by BB at A+, which assures that you are dealing with a reputable company.
Best for: Comparing contractor insurance quotes online
Average cost: $24 per month
Our rating: 10/10
Comfortably compare contractor insurance quotes on the phone
Can review your risk profile and recommend the best insurance for your business
It has some of the most competitive insurance prices
You need to call to compare quotes
Tivly is an insurance marketplace where you can find some top insurance companies. They offer a platform that allows you to access the most competitive prices in the market. Once you call one of their representatives, you can quickly access the insurance quotes on your phone. Some policies include general liability, tools, and equipment, professional liability, workers' compensation, etc. Call now to compare quotes over the phone.
Best for: Comparing contractor insurance quotes over the phone
Average cost: $27 per month
Our rating: 9/10
Offers contractor insurance quotes instantly
For your general liability insurance, you can include several add-ons
On-demand coverage options suitable for people engaging in short-term projects
Their customer service team is not easily reachable
Thimble is for contractors wanting short-term coverage. If you are a contractor who wants coverage for hours or days, this company offers you the best options. They also offer long-term coverage for your construction business. You can purchase policies such as BOP, business equipment insurance, general liability, and more cost-effectively.
Best for: Contractors looking for project-based insurance coverage
Average cost: $30 per month
Our rating: 9/10
You can customize your contractor insurance limits
They offer worldwide coverage for businesses that want to operate internationally
They have unrivaled experience; they have been selling insurance products for more than 100 years
Doesn’t offer coverage in Alaska
Hiscox focuses on offering small and medium businesses adequate coverage. You CAN purchase from them many products such as workers' compensation, general liability, BOP, tools and equipment, and more. They are an experienced company currently offering coverage to over 500 customers.
Best for: Contractors with specialized insurance coverage needs
Average cost: $32 per month
Our rating: 9/10
1 / 5
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
1 / 5
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
1 / 5
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
5 / 5
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
5 / 5
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
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