What Types of Contractor Insurance Illinois Do You Need?
If you’re a contractor, you probably already have some form of contractors insurance. In Illinois, this type of coverage covers everything from general liability insurance to Errors and omissions coverage and commercial auto insurance. But what exactly should you look for? Here are some factors to consider. How much insurance do you need? Let’s take a look. Here’s how to get started:
General liability insurance
In addition to providing peace of mind, contractor liability insurance in Illinois is an excellent way to protect your business. In the event of a lawsuit, a liability insurance policy will cover the costs of bodily injury, funeral expenses, and compensation for pain and suffering. While most insurance policies do not cover claims against a contractor by an employee, this coverage protects you from lawsuits arising from a slip and fall. The insurance company will fight the claim on your behalf and pay for legal defense up to the policy limits.
This coverage is necessary for a general contractor to differentiate themselves from their competitors. Without this coverage, the business is at risk of losing its assets in a lawsuit. If a client sues you, your assets could be confiscated and your business could be shut down. Without insurance, you risk losing business and incurring enormous losses. You can save 10% on your policy if you combine it with other business insurance. General liability insurance for contractors in Illinois can cost more than the national median, but you can enjoy more benefits by bundling it with other policies.
Builders risk insurance
If you’re a home or commercial construction owner in Illinois, you may want to consider purchasing Builders Risk insurance. This policy covers disasters like fires and storms, and can also be combined with other forms of insurance. It protects the owner and contractor and functions as a safety net in case something unexpected happens during the build process. For more information on Builders Risk insurance in Illinois, contact an insurance agent. You can also request a quote online.
A builder’s risk policy is designed to protect you against any physical loss or damage that might occur during the construction process. A builder’s risk policy must translate the monetary value of damaged property into an obligation to pay out the owner. According to One Place’s self-avowed policy interpretation expert, “Valuation” refers to the damaged or lost property at the time of the loss. This limit limits the insurer to paying up to $100,000 in increased costs due to unforeseen circumstances.
Errors and omissions coverage
If you have a business that provides advice or professional services to clients, you may want to consider purchasing Errors and Omissions coverage for contractor insurance in Illinois. You can get free quotes from leading insurers on SimplyBusiness.com and a policy in as little as 10 minutes. While mistakes do happen, and it’s important to be prepared, they can be disastrous, resulting in costly lawsuits. If you’re not covered for errors and omissions, you could find yourself paying thousands of dollars in legal fees and settlements for a lawsuit.
For example, if a contracting firm installs a substandard plumbing system, resulting in building-wide leaks, a building owner may sue the firm. Because the contractor cut corners, his insurance coverage may not cover the plumbing system replacement cost, which the building owner could have avoided with a better system. If the insurance policy covers a lawsuit, he’ll get the money he needs for repairs.
Commercial auto insurance
If you operate a business that uses vehicles, you’ll likely need commercial auto insurance for contractors in Illinois. In addition to covering the cost of repairs, commercial auto insurance also helps you pay for towing fees when you’re stranded. And if your vehicle breaks down on the road, commercial insurance can help cover those costs as well. For more information, contact a licensed insurance agent or knowledgeable person at your business.
A commercial auto insurance policy is also appropriate if you’re carrying a lot of equipment or tools or using a trailer for business purposes. In addition, commercial auto insurance often comes with higher limits of liability, and you’ll need to determine the amount of coverage you need. This type of policy will also depend on whether you employ employees or if you own the vehicle in the corporation’s name. For more information, visit State Farm.