Compare Contractor General Liability in Illinois (2025)
Compare Contractor General Liability in Illinois (2025)
Illinois contractors in 2025 face stricter client requirements for
General Liability (GL) coverage—especially for construction, electrical, HVAC, roofing,
and design-build trades. Most project owners now expect at least
$1 million per occurrence and $2 million aggregate with specific endorsements
attached. This guide compares common GL limits, forms, endorsements, and claims basics that matter for Illinois
contractors who want to stay contract-compliant without overspending on insurance.
Typical Limits & Forms in Illinois
Contractor general liability policies in Illinois commonly follow the ISO CG 00 01 base form
(occurrence-based). Minimum coverage tiers vary by project type, contract value, and whether you work as a
subcontractor, prime contractor, or on municipal jobs. Below are typical 2025 benchmarks used by many owners and
GCs:
| Project Type |
Per-Occurrence Limit |
Aggregate Limit |
Deductible |
| Residential remodeler |
$1,000,000 |
$2,000,000 |
$1,000 |
| Commercial contractor |
$2,000,000 |
$4,000,000 |
$2,500 |
| Municipal or infrastructure projects |
$5,000,000+ |
$10,000,000+ |
$5,000+ |
Higher limits are often requested on public works, schools, hospitals, or developer-led projects. Many contractors
keep a standard GL policy (for example $1M/$2M) and then use umbrella or excess liability to reach
the total limit required by the contract instead of rewriting the base GL.
Additional Insured Requirements
Most Illinois contracts require project owners, general contractors, and sometimes lenders or municipalities to be
named as additional insureds on your GL policy. The most common endorsements include:
- CG 20 10 – Additional Insured, ongoing operations
- CG 20 37 – Additional Insured, completed operations
- Primary & non-contributory wording for additional insureds
Make sure your policy or blanket AI endorsements clearly cover both ongoing and
completed operations, especially for jobs with warranty periods or latent defect risk (concrete,
structural work, roofing, etc.).
Waivers of Subrogation
A waiver of subrogation prevents your insurer from seeking reimbursement from the project owner,
GC, or other insured parties after paying a claim. In Illinois, waiver language is standard for union, industrial,
and municipal jobs. To stay compliant, ask your agent or broker to attach an appropriate waiver endorsement
(for example CG 24 04) that applies to the projects or entities named in your contracts.
Certificates of Insurance (COIs)
Certificates of Insurance (COIs) act as proof of coverage and need to mirror contract requirements closely—limits,
additional insured wording, waivers, and primary/non-contributory status. Many Illinois GCs and owners now rely on
electronic COI tracking systems, so make sure your broker can:
- Issue same-day COIs for new jobs and change orders
- Handle electronic delivery to portals or compliance platforms
- Automatically update COIs at renewal to avoid project-payment delays
Industry-Specific Add-Ons
Depending on your trade and project size, you may need additional policies or endorsements beyond standard GL:
- Contractor’s Pollution Liability (CPL): for HVAC, plumbing, environmental, or fuel/oil work
- Employee Benefits Liability (EBL): if you administer employee-benefit plans
- Professional / E&O coverage: for design-build, engineering, or construction management
- Inland Marine / Tools & Equipment: to insure tools, equipment, and job-site materials
Always check the bid specs or owner’s insurance requirements section so you know exactly which coverages and
endorsements must be in place before mobilizing to the job site.
Claims Basics for Illinois Contractors
Claims frequency and severity directly affect your renewal pricing. Illinois insurers may apply surcharges or higher
deductibles after even a single paid claim. Keeping a clean loss history can reduce your long-term GL cost by
up to 25%. Common contractor GL claims include:
- Property damage to a client’s building or a neighboring property
- Bodily injury from job-site accidents involving visitors or third parties
- Completed-operations defects, such as faulty installation or water intrusion
Report incidents promptly—delayed reporting can jeopardize coverage. Document with photos, written statements,
incident reports, and immediate notification to both your broker and the project owner within 24 hours whenever
possible.
FAQs
Is $1M/$2M general liability enough for Illinois contractors?
It depends on your work and contracts. Many residential and small commercial jobs still accept $1M per
occurrence / $2M aggregate. However, larger commercial, industrial, and municipal projects often require
$5M or more in combined limits, usually met by adding an umbrella or excess policy.
Does general liability cover tools or equipment?
No. General liability covers third-party bodily injury and property damage. Your tools, equipment, and
materials are insured under a separate inland marine or contractor’s equipment policy.
Do past claims affect future premiums?
Yes. GL claims generally stay on record for 3–5 years. Multiple or severe claims can increase your rates,
raise deductibles, or limit which carriers are willing to quote your business.
Can I add additional insureds at any time?
In most cases, yes. Many GL policies include blanket additional-insured language when required by written
contract, and your agent can issue updated certificates mid-term to list new owners, GCs, or municipalities.
Are Illinois contractor GL policies regulated?
All admitted carriers writing GL in Illinois are regulated by the
Illinois Department of Insurance. Before binding coverage, contractors should confirm that
their carrier is properly licensed and financially stable.
References
Key Takeaways
- $1M/$2M remains a baseline GL limit for many small Illinois contractors, but larger jobs often need higher totals.
- Additional insured, primary/non-contributory, and waiver-of-subrogation clauses are standard in 2025 bid specs.
- Accurate, up-to-date COIs are critical for site access and timely payment.
- Inland marine—not GL—protects your tools, equipment, and job-site materials.
- Clean claims history can reduce renewal premiums by up to 25% over time.
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