Illinois Contractors Need The Following Insurance
Coverage for Third Party (GL): No matter how long you have been a contractor, you have been working in this field long enough to know that all kinds of injuries are possible on construction sites. Whether someone climbs a ladder on your site and falls off or steps on a nail, you need to make sure you have general liability coverage to pay for the resulting medical bills. The same goes when someone visits the site and incurs property damage to their car by driving over debris, such as nails or even equipment. In such cases, you will be glad you do not have to personally pay for the repairs, since the general liability portion of Illinois contractor insurance will pay for them.
Tools & Equipment Coverage (BOP): You need to make sure that both rented and purchased construction tools and equipment are protected, and you can do that by adding tools & equipment coverage to your Illinois contractor insurance policy. This way, if any tools of the trade that you use are lost, stolen, or damaged in any way, your insurance policy will pay to replace them.
Employee Coverage (WC): If you are one of the 27,779 small construction firms in Illinois with 1 to 499 employees, you need workers compensation. The point of adding this coverage to your Illinois contractor insurance policy is to make sure the medical bills of any injured employees are paid for when they are hurt at work. This part of your policy can also pay for lost wages and legal fees associated with work injuries and illnesses.
Business Vehicle Insurance: You and your employees likely have to drive frequently to get to construction sites around Illinois. The more you drive for work, the more important it is to have business vehicle insurance as part of your Illinois contractor insurance policy. This is because your personal car insurance will not cover the damages you cause in a car accident when you are driving for business purposes.
Bond: When you have a surety bond as part of your Illinois contractor insurance, it means your services are guaranteed. As a result, if you fail to live up to the terms of the contract you sign, you have to pay a fine. If you do not want to pay this out of pocket, and if you want to improve your reputation in the construction field, you need to add a surety bond to your Illinois contractor insurance policy.