Contractors using vehicles for business should review Commercial Auto insurance. Vehicles may include: Pickup trucks Cargo vans Sprinter vans Box trucks Service trucks Dump trucks Trailers Personal auto insurance should not automatically be assumed to cover commercial contractor operations.
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General Liability does not normally function as insurance for the contractor’s own tools. Contractors should consider Inland Marine / Contractors Equipment coverage for items such as: Power tools Hand tools Compressors Generators Skid steers Bobcats Mobile equipment Equipment transported between jobsites Coverage varies by policy.
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Builders Risk insurance protects qualifying property during construction. It may be required for: New construction Major renovations Building additions Certain remodeling projects Builders Risk is different from General Liability. General Liability primarily addresses liability exposures. Builders Risk primarily addresses covered damage to property under construction.
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Workers’ Compensation claims can affect more than the current claim payment. Loss history can eventually affect: Experience Modification Future premiums Underwriting eligibility Safety requirements Available insurance companies Contractors should maintain strong workplace safety practices and report claims promptly.
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A surety bond is not the same as insurance. A bond generally involves three parties: Principal The contractor or business required to obtain the bond. Obligee The government agency, customer, municipality, or other party requiring the bond. Surety The company issuing the bond. A surety bond guarantees that the principal will fulfill a specific legal…
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Contractors may encounter several types of bonds. License & Permit Bond May be required by a city, municipality, county, or licensing authority before a contractor can obtain or maintain a license or permit. Bid Bond Provides assurance that a contractor submitting a bid will enter into the contract and provide required performance/payment bonds if awarded…
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Illinois law requires bonds for certain public construction contracts. Under the current Illinois Public Construction Bond Act, through December 31, 2028, many State or political-subdivision public works contracts costing more than: $150,000 must require the contractor to provide a bond. Special temporary thresholds currently apply to Illinois Department of Transportation and Illinois State Toll Highway…
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Unlike a standard insurance policy, a surety evaluates whether the contractor is financially capable of completing the obligation being guaranteed. Depending on the bond and project size, the surety may review: Personal credit Business credit Financial statements Bank balances Working capital Net worth Prior construction experience Project history Largest completed job Current work in progress…
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The bond amount is not normally the amount the contractor pays. Example: A city may require a: $20,000 Contractor License Bond That does not necessarily mean the contractor pays $20,000. The contractor pays a bond premium determined by the surety. For some small license bonds, underwriting may be relatively simple. Large contract bonds are evaluated…
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Roofing is one of the trades specifically regulated at the Illinois state level. Illinois roofing contractor licensing requires qualifying documentation that can include: Workers’ Compensation information Liability/property damage insurance Qualifying party Required license bond The Illinois Department of Financial & Professional Regulation administers roofing contractor licensing. Read more:Illinois Department of Financial & Professional Regulation —…
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