What Insurance Should Illinois Contractors Have?

When you are working on a disaster restoration project or a home or business¬† improvement, it’s important to guarantee that your contractor has the proper insurance coverage before they begin working on your home.

In Illinois, it is not a legal requirement for contractors to have liability insurance. However, there are factors that contractors should take into consideration when deciding why liability insurance is an important tool to add to their toolbox.

What is Liability Insurance?

Known as commercial general liability insurance, this is a policy that will cover a contractor’s business from any personal injury claims, property damage, slips and falls on the premises, and even wrongful death. This coverage can mean the difference between a pricey out of pocket claim against your home or business, or a claim that is covered under their insurance policy.

Why is Liability Insurance Important?

Without liability insurance, you are liable for claims listed above both on your property and on the properties where you are performing your contracting work. If you skimp on your insurance policy it can also mean that you are not covered for specific issues that may come up. For example – a painter that is doing exterior and interior work may only have coverage for the interior. If damage is caused outside, you are responsible for any repairs.

Here is why you need to check that your contractor has proper coverage.

  1. To protect their assets. If you have no insurance coverage, a contractor’s tools, bank accounts, vehicles, and properties are at risk and likely to be seized to settle any claims that you are unable to pay. There are several businesses that have gone out of business after assets have been seized.
  2. Your contractor can protect their peace of mind while running their business. When you know you have the right coverage you do not need to worry about risks and accidents that happen. Your insurance policy will cover you from unexpected surprises. Even if you are required to fight a claim, your insurance company will handle all of the details, and in some case, do the litigation for you.
  3. Clients will have added trust. Clients can easily check if contractors have proper insurance coverage with an easy internet search. You run the risk of losing jobs if you do not have liability insurance coverage when your competitors do.

Types of Liability Insurance Coverage

What exactly does liability insurance coverage entail? Liability coverage will protect you from these third party claims:

  1. Property damage. If someone accuses that you of damaging their property during a project, they become eligible for compensation if the court finds in their favor. Your contractor insurance policy will settle this claim.
  2. Copyright claims. Should another business claim that your business copied their marketing techniques, your contracting liability insurance will cover this expensive type of claim.
  3. Completed products claims are claims that come from clients that are injured by services already delivered. This can be a balcony that was installed which collapsed six months later, causing injury to those that were on the structure.
  4. Bodily injury claims. If anyone is injured on your work site this policy will cover medical expenses, compensation for pain, lost wages, and, in the worst-case scenario, funeral expenses.

If you are ready to start your repair or renovation project and are looking for a fully insured contractor in Lake Country Illinois, McMahon Services is the answer. We offer restoration services for fire and water damage, as well as general contractor services for any home projects you can imagine.

Call us today for more information and to schedule your free estimate.