Verified insurance requirements for general contractors operating in Illinois.
Illinois does not require GL insurance by state law. There is no statewide general contractor license. However, Chicago and other municipalities require GL as part of local contractor licensing and permitting.
Minimum Coverage
$500,000 - $1,000,000
Estimated Annual Cost
$500 - $2,000/year
Illinois requires workers' compensation for ALL employers with one or more employees (820 ILCS 305). Administered by the Illinois Workers' Compensation Commission (IWCC). Construction employers face heightened scrutiny under the Employee Classification Act (820 ILCS 185), which presumes workers in construction are employees. Sole proprietors, partners, corporate officers, and LLC members may exempt themselves. Failure to carry WC is a criminal offense with fines up to $500/day (minimum $10,000), and corporate officers can be held personally liable.
Minimum Coverage
Statutory limits
Estimated Annual Cost
$1,000 - $5,000/year
Illinois does not require a surety bond for general contractors at the state level. However, roofing contractors must carry a $10,000 (limited) or $25,000 (unlimited) bond through the Department of Financial and Professional Regulation. Plumbers require a $20,000 bond through the IL Department of Public Health. Most other bond requirements are set at the municipal level.
Minimum Coverage
$5,000 - $25,000
Estimated Annual Cost
$100 - $500/year
Required for business vehicles. Illinois auto minimums: 25/50/20 ($25K per person, $50K per accident bodily injury, $20K property damage).
Minimum Coverage
25/50/20 ($25K per person, $50K per accident bodily injury, $20K property damage)
Estimated Annual Cost
$1,200 - $3,000/year
Provides additional coverage beyond your general liability and auto policy limits. Recommended for larger projects.
Minimum Coverage
$1,000,000+
Estimated Annual Cost
$300 - $1,000/year
$2,800 - $10,000/year
Varies based on your revenue, number of employees, claims history, and specific coverage limits.
Insurance requirements and costs vary by insurer, your business specifics, and local regulations. Always consult with a licensed insurance agent for quotes specific to your situation. This guide is informational only.