Illinois Construction Insurance

Find the Best Construction Insurance Rates & Companies in Illinois

Construction work is always in demand, so workers in the industry are constantly at risk of various accidents, injuries, and lawsuits. For years, construction work has topped the charts of the most dangerous jobs, and the industry has some of the highest rates of worker incidents. Due to the ever-present hazards in the field, construction insurance is very valuable to consider.

Fortunately, an Illinois independent insurance agent can help you get equipped with enough construction insurance to protect you and your business from financial losses. They'll identify common risks and match you with the coverage necessary. Until then, here's a deep dive into Illinois construction insurance requirements and more.

Best Construction Insurance Companies in Illinois

Insurance companies sell coverage for construction businesses and their workers under various names. Many carriers call this coverage "contractors business insurance." Here are some of our top picks for quality construction insurance in Illinois.

1. Encova: This carrier sells contractors business insurance and many other types of coverage. Encova has excellent ratings from AM Best and the Better Business Bureau (BBB) and offers 24/7 claims reporting.
2. Westfield: This carrier sells contractors business insurance and many other types of coverage. Westfield has outstanding ratings from AM Best and the BBB and works with a large network of independent insurance agents.
3. Liberty Mutual: This carrier sells construction insurance and many other types of business and personal insurance. Liberty Mutual has great ratings from AM Best and the BBB, offers numerous discounts, and provides 24/7 claims reporting. 

An independent insurance agent in Illinois can help you find affordable construction insurance from one of these outstanding carriers.

What Is Construction Insurance?

Construction insurance is a package of policies designed to cover the components involved in construction work. This includes the tools workers use, other kinds of commercial property, and workers themselves. 

Finding coverage can be challenging, though, because construction insurance is a special type of business insurance that may be sold under several different names. A local independent insurance agent can easily help you locate the right construction insurance policy for your business.

Is Construction Insurance Required in Illinois?

Sometimes, construction insurance is mandatory. Small-scale projects involving less risky operations may not require coverage, but larger jobs involving hazardous equipment and complex labor typically do. 

Regardless of the details, construction work comes with numerous risks, both obvious and hidden, so having coverage is usually a wise choice, especially if you are any of the following types of professionals:

• Property owner: If a construction mishap occurs on your property, you can be sued even if the incident wasn't your fault. Construction mishaps can potentially cause injury to guests on your property, requiring some protection against lawsuits.
• Contractor or subcontractor: If you make a calculation error that somehow causes injury to workers and property guests or damage to the actual property, you can be sued. Protection against lawsuits is crucial for contractors and subcontractors.
• Construction company: Construction companies need protection for themselves and their workers. If your employees cause damage to a job site or get injured while on the job, coverage is essential. Also, you need protection in case a property owner sues you because of a mistake your workers made.

No matter the exact line of work you're involved in, you can find a construction insurance policy tailored to your niche with the help of an Illinois independent insurance agent.

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Why Construction Insurance Is Essential in Illinois

From potential injuries to property damage and lawsuits, construction insurance is definitely a must-have. It's essential to consider the construction risks specific to your state. 

Some of the most common construction insurance claims in Illinois include:

• Inclement weather: In the last several years, Illinois construction workers have been significantly affected by flooding, harsh winters, and tornadoes, which can cause serious damage to job sites and equipment, present hazardous conditions for workers, or force you to suspend operations.
• Employee injury: Illinois is home to some of the tallest buildings in the country. Working at great heights on unstable surfaces, dealing with dangerous equipment, and direct exposure to the elements present numerous hazards to workers. 
• Damage due to defective work: Mistakes made during a construction job can cause damage to the structure and any surrounding property or injure someone on the site. Sewer line disturbances caused by construction projects are some of the most common and costly claims.
• Damage due to falling objects: Overloaded cranes, workers dropping materials, and pieces of a structure being knocked off are common mishaps. Falling objects can cause serious destruction in the form of property damage, injury, and death.
• Business interruptions: Regardless of where a construction project occurs, it's prone to nature's elements. Whether you're contracted in an earthquake zone, flood zone, or tornado zone, you run the risk of losing precious income if a natural disaster forces you to suspend operations temporarily.

With the proper construction insurance coverage in place, you can help minimize your risks and protect your construction projects and workers from unexpected catastrophes.

What Does Construction Insurance Cover in Illinois?

Construction insurance policies offer most of the liability insurance you'll need for your business, as well as commercial property coverage, workers' comp., and more. Here are some of the most common construction insurance coverage options in Illinois:

• General liability insurance: This coverage protects you against the cost of lawsuits arising from property damage or injury claims made by a third party.
• Commercial property insurance: This coverage can reimburse you for repairs or replacements to business property, such as tools, equipment, and inventory.
• Workers' compensation insurance: If your employees get injured, ill, or die from a work-related incident, this aspect of the insurance can cover the financial ramifications, including medical bills and treatments. For construction workers, this coverage is often mandatory in most states.
• Professional liability insurance: This coverage protects against lawsuit costs arising from claims made by clients who suffer financial loss due to the work they've hired you for. This coverage is important if you offer advice, consulting, or design work as part of your services.
• Builders risk insurance: This covers the structure on a job site and the materials used while the project is underway. In many cases, it also provides coverage against business interruption or financial losses due to a delay in a construction project’s completion.
• Inland marine insurance: Covers the construction tools and equipment used that cannot be affixed to a permanent location, including while it's in transit.
• Pollution liability insurance: Provides protection against third-party claims for property damage or bodily injury for construction incidents involving pollution. Demolition and paving are examples of construction projects that could lead to pollution-related incidents.
• Commercial auto insurance: Protects company vehicles against costs related to theft, vandalism, accidents, and damage from natural disasters.
• Business umbrella insurance: This coverage increases your liability insurance's limits to $1 million or greater. Umbrella coverage can be applied to general liability insurance, commercial auto liability insurance, pollution liability insurance, and other policies in your construction insurance package to increase your business's protection against hefty lawsuits that may exhaust typical limits.

Your construction insurance package will be assembled by selecting the coverages that work for your unique business from a list of available options. Coverage applies to everything from lost business revenue to potential legal and court fees.

How Much Does Construction Insurance Cost in Illinois?

The cost of construction insurance can vary considerably, even within just the state of Illinois. On average, many contractors pay about $80 per month just for general liability coverage and over $250 per month for workers' comp. Construction insurance rates may be influenced by each of the following factors:

• The location and size of the business
• The number of employees the business has
• The type of construction work performed
• The business's claims history

Working with a local Illinois independent insurance agent is the best way to find affordable construction insurance near you.

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Our independent agents shop around to find you the best coverage.

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Popular Questions about Illinois Construction Insurance