If you’re running a contracting business, it’s not just about finishing jobs on time or keeping clients happy. One thing you can’t afford to overlook is protection. And that means having the right coverage in place. At Illinois Insurance Center, we often get asked, “What types of insurance contractors should get?” That’s exactly what we’re going to break down today in simple terms. We’re not here to confuse you. We’re here to make sure you’re covered.
Why Insurance Contractors Should Get the Right Coverage
We’ve seen too many small business owners lose out because they didn’t think something bad would happen. The truth is, things can go sideways fast. Accidents, lawsuits, damage to property—they don’t knock before showing up. The right insurance saves you money, time, and stress. That’s why understanding what insurance contractors should get is the first step in keeping your business alive and kicking.
General Liability Insurance: A Contractor’s First Line of Defense
This is usually the first policy we recommend. General liability protects you if someone claims your business caused injury or damage.
- ✅ Covers property damage: Let’s say your team knocks over a client’s fence by mistake. This insurance helps pay for the repairs so you’re not footing the bill yourself.
- ✅ Handles bodily injury claims: If someone trips on your work equipment and gets hurt, this policy has your back.
- ✅ Pays legal defense: If you get sued, this can cover your legal fees, settlements, or court judgments.
Many contractors in Chicago, IL start with this before adding anything else.
Workers’ Compensation Insurance: Required by Law in Illinois
If you have even one part-time employee, the state says you need to carry workers’ compensation.
- ✅ Medical costs: Pays for doctor visits, surgeries, or physical therapy for injured workers.
- ✅ Lost wages: If a worker can’t return to work for a while, this helps replace part of their income.
- ✅ Legal protection: Shields you from being sued by injured employees.
We’ve helped business owners in Aurora, IL stay compliant without spending a fortune.
Commercial Auto Insurance: Don’t Rely on Personal Coverage
Your regular car insurance won’t cover business use. If you’re hauling tools or driving to job sites, you need commercial auto insurance.
- ✅ Covers business vehicles: Vans, trucks, trailers, and anything else tied to your job.
- ✅ Liability and physical damage: If you hit someone or your truck gets wrecked, this policy steps in.
- ✅ Employee drivers: If your team uses the company ride, this policy protects them too.
We’ve set up contractors across Joliet, IL with the right coverage so they can drive without worry.
Builder’s Risk Insurance: Protect the Work in Progress
Working on a new build or remodeling a property? Builder’s risk insurance covers the actual structure you’re building.
- ✅ Covers weather-related damage: Strong winds or storms can tear through a job site fast. This insurance helps repair the damage.
- ✅ Fire and vandalism protection: Fires can happen. So can theft or spray-painting vandals. This coverage kicks in.
- ✅ Temporary materials and equipment: Stored supplies and tools at the job site can also be protected.
We often help contractors near Rockford, IL who work in areas with unpredictable weather and higher risks.
Contractor Insurance: A Full Package in One Policy
Contractor insurance isn’t a single product. It’s a bundle of several policies put together for one reason—to cover contractors from all angles.
- ✅ Saves time: Instead of hunting down multiple separate policies, you get one package.
- ✅ Covers more than just injuries: You can include liability, property damage, auto coverage, and more.
- ✅ Flexible options: Whether you’re a roofer, plumber, or landscaper, we tailor the bundle to fit you.
If you’re based in Naperville, IL and want an easy way to stay covered, this is it.
Business Insurance for Contractors: A Broader Safety Net
If your operation is growing, business insurance takes your protection even further. It can cover a range of unexpected issues.
- ✅ Covers interruptions: If a fire shuts you down for weeks, this can help recover lost income.
- ✅ Protects office space: Have a rented office or storage warehouse? This insurance has you covered.
- ✅ Includes employee dishonesty: Sometimes, internal issues happen. This policy helps with theft or fraud committed by staff.
We always suggest this to larger contractors who are scaling up and need broader protection.
Homeowners Insurance: Protect Your Base
Running your contracting business out of your house? Your homeowners insurance might cover some basic tools and personal property, but that’s about it.
- ✅ Personal property limits: Home insurance often doesn’t cover tools used for business.
- ✅ Business endorsements: You may be able to add extra protection for small business use.
- ✅ Still important: Keep your home safe, even if you have a separate business policy.
Many contractors in the Chicago suburbs rely on this combo to stay secure both at home and on the job.
Life Insurance: Protect Your Family and Business
If something happens to you, what happens to your business? Life insurance helps your family cover costs and possibly keep things running.
- ✅ Helps pay off debts: Mortgages, equipment loans, or credit lines don’t disappear.
- ✅ Covers final expenses: Burial costs can pile up, and this policy handles that.
- ✅ Transfers ownership: Helps buy time or fund a business succession plan.
Contractors near Chicago, IL often use life insurance to keep their families from being left with a financial mess.
FAQ: Insurance Contractors Should Get
1. Do I really need insurance if I’m a one-person contracting business? Yes. Even solo contractors can face lawsuits or property damage. One mistake can cost thousands.
2. What’s the difference between general liability and contractor insurance? General liability covers accidents and damage, while contractor insurance is a bundle of several policies made for contractors.
3. Will my personal car insurance cover me if I use my truck for jobs? No, you need commercial auto insurance. Personal policies don’t cover business use.
4. How much does contractor insurance cost? It depends on your trade, location, number of employees, and more. We can give you a free quote.
5. Can I mix and match policies to build my own package? Absolutely. We customize everything to fit your contracting business.
6. Do I need insurance for tools and equipment? Yes. Builder’s risk and contractor insurance can include coverage for your tools.
7. Is workers’ comp required if I hire independent contractors? If they’re truly independent, it might not be required. But misclassification can cost you. Better to ask us directly.
8. Will insurance cover subcontractors I hire? Only if your policy includes them or they have their own coverage. It’s a big deal to get this right.
9. How do I know what I actually need? That’s what we’re here for. Call us or visit our contact page for a review.
10. What if I move my business to a new city in Illinois? We cover the entire state. Whether you’re in Rockford, IL or nearby, we can help update your policies.
Final Thoughts: Get the Right Coverage Before It’s Too Late
Don’t wait for something to go wrong before you protect your business. Whether you’re just starting out or have a team of ten, we make sure you’re covered the right way. At Illinois Insurance Center, we’ve been helping contractors like you for over 48 years. We proudly serve Naperville, IL, Aurora, IL, and everywhere in between.
Want to talk with someone who gets it? Give us a call at 708-524-4900 or reach out through our contact page. We’ll help you get the insurance contractors should get—plain and simple.
See Also:
- Frequently Asked Questions About Landscaping Insurance
- 8 Types of Small Business Insurance Every Owner Should Know
- Re-Evaluating Your Auto Insurance: 5 Key Questions
- Questions To Ask Before You Purchase Business Insurance
- Liability, Collision, or Both? What You Need to Know About Your Auto Insurance Policy
