Insurance in Illinois

Illinois insurance obligations for a trades contractor come from three layers: state statute, state agency rule, and the city or county that issues the local license. Build the stack in that order. Workers' compensation. The Illinois Workers' Compensation Act (820 ILCS 305) is the floor. Construction, excavating, and electrical work are listed by the Act as extra-hazardous enterprises, which means coverage is automatic and mandatory for every employer in those categories regardless of employee count. A general contractor, roofer, plumber, electrician, or mechanical contractor with even one employee must carry coverage. The Illinois Workers' Compensation Commission (IWCC) administers the Act and publishes penalty guidance at the link below. Sole proprietors and most corporate officers can elect out, but the election has to be filed correctly and is not the default. General liability. Illinois does not set a statewide general liability minimum for most trades. Floors are set by the licensing authority that applies to the work. - Roofing. IDFPR requires evidence of public liability and property damage insurance at application under the Illinois Roofing Industry Licensing Act (225 ILCS 335). The exact minimum is set by IDFPR rule and should be confirmed against the current IDFPR roofing page linked below before you bind. - Plumbing. IDPH registration of plumbing contractors requires liability, bodily injury, property damage, and workers' compensation coverage under the Illinois Plumbing License Law (225 ILCS 320). Dollar minimums live in the administrative rule, not the statute, so verify against the current IDPH plumbing page. - Chicago general contractors. Municipal Code Chapter 4-36 sets a minimum general liability insurance limit that scales with the license class (Class A through Class E). The Department of Buildings publishes the current per-class limit on the Chicago GC license page. Commercial project owners often require $1,000,000 per occurrence and $2,000,000 aggregate or higher regardless of the license class floor. Surety bonds. - Roofing. $10,000 continuous bond for an IDFPR Limited roofing license, $25,000 continuous bond for an Unlimited roofing license, per 225 ILCS 335. - Plumbing contractors. Bond required by IDPH as part of annual registration. Form varies for corporation, LLC, partnership, and sole proprietor. - Municipal. Some Illinois cities attach a contractor license bond (for example, Chicago wrecking contractor bonds for demolition work). Check the local ordinance before you bid. Commercial auto and other coverages to price. - Commercial auto on trucks and service vans. Personal auto policies exclude business use. - Hired and non-owned auto for employees who drive personal vehicles for company errands. - Inland marine (contractor's equipment) for tools, compressors, lifts, and materials on jobsite. - Pollution liability for refrigerant handling, solvent use, lead, asbestos, and fuel storage. Relevant to HVAC, mechanical, and remediation work. - Installation floater for materials between delivery and final fixing. - Umbrella of $1,000,000 or $2,000,000 over the underlying GL is common on commercial projects. Shop annually. PHCC Illinois, ABC Illinois, AGC of Illinois, and the Illinois Roofing Contractors Association run member programs that often price group coverage below street rates. Confirm every policy against the current IDFPR, IDPH, or Department of Buildings rule before you assume you have met the license floor.