As a contractor in Illinois, protecting your business with proper insurance coverage is essential. This guide breaks down insurance costs and requirements based on our analysis of actual quotes from leading carriers for Illinois contractors.
Frame your success by learning about general contractors liability insurance.
General Liability Insurance for Illinois Contractors
General liability insurance protects your contracting business from third-party claims of property damage and bodily injury. Based on our analysis of over 800 contractor quotes, here are the typical costs for Illinois contractors:
| Revenue Size | Average Premium | % of Revenue | Favorable Premium | Potential Savings |
|---|---|---|---|---|
| $500K | $11,420 | 2.3% | $5,840 | 49% |
| $1M | $18,140 | 1.8% | $10,410 | 43% |
| $2.5M | $55,170 | 2.2% | $24,100 | 56% |
These premiums assume:
- Clean claims history (5+ years without incidents)
- Standard $1M/$2M coverage limits
- Typical mix of residential and commercial work
- Approximately 10% subcontractor costs
Worker’s Compensation Insurance for Illinois Contractors
Worker’s compensation insurance is mandatory for Illinois contractors with employees. Based on our analysis, Illinois contractors typically pay around $8,442 per employee annually for workers’ compensation coverage.
For Illinois contractors, typical workers’ compensation costs per $100,000 of payroll average $19,230, making it one of the more expensive states for this coverage.
Common contractor classification codes and approximate rates:
- Code 5606 (Project Manager/Supervisor): $3-5 per $100 of payroll
- Code 5645 (Residential Construction): $8-12 per $100 of payroll
- Code 5403 (Commercial/Large Projects): $12-17 per $100 of payroll
Key factors affecting premiums:
- Employee classification codes
- Annual payroll
- Claims history
- Safety programs
- Experience modifier rating (EMR)
Additional Business Insurance for Contractors in Illinois
1. Commercial Auto Insurance
- Typical cost: $1,000-$4,000 per vehicle annually
- Required for business-owned vehicles
- Higher limits often needed for larger contractors
- Coverage for business vehicles and liability protection
- Optional hired and non-owned coverage available
2. Tools & Equipment Coverage
- Cost: $1,500-$5,000+ annually for $15k-$50k coverage
- Protects both owned and rented equipment
- Coverage follows equipment to all jobsites
- Protection against theft, damage, and vandalism
- Includes coverage during transport between locations
3. Commercial Property Insurance
- Annual premiums: $2,000-$20,000+ based on property value
- Protects offices, storage facilities, and workshops
- Coverage for fire, theft, vandalism, and natural disasters
- Business interruption coverage available
- Protection for building contents and inventory
4. Builder’s Risk Insurance
- Premium: 0.15-0.75% of project value
- Covers projects under construction
- Protection against fire, weather, vandalism
- Materials coverage during transit and storage
- Coverage extends to temporary structures
5. Surety Bonds
- Performance and payment bonds for larger contracts
- Cost: 1-3% of bond amount
- Required for certain projects
- Premium varies based on credit and experience
- Multiple bond types available based on project needs
Get Illinois Contractor Liability with ContractorNerd
ContractorNerd specializes in making insurance simple and data-driven for Illinois contractors. Our platform offers:
- Instant online quotes from top-rated carriers
- Side-by-side coverage comparisons
- Contractor-specific expertise and guidance
- Streamlined application process
- Ongoing policy management support
- Claims advocacy when needed
Our team of contractor insurance specialists understands Illinois’s unique requirements and can help you:
- Optimize coverage levels based on your specific risks
- Find competitive rates through our carrier network
- Bundle policies for additional savings
- Ensure compliance with state regulations and contract requirements
To get started with tailored quotes for your Illinois contracting business, visit our online quote tool or speak with one of our contractor insurance specialists today.