City of Chicago General Contractor Insurance Requirements: What You Need to Know

If you are a general contractor working in the city of Chicago, you need to know the insurance requirements that you must meet. The City of Chicago requires all general contractors to carry certain types of insurance coverage. This is to protect both the contractor and the clients they work with. In this article, we will explore the insurance requirements for general contractors in the City of Chicago.

Liability Insurance

General contractors in the city of Chicago are required to have liability insurance. Liability insurance protects the contractor and their clients from financial damage that may occur as a result of accidents or incidents on the job site. Liability insurance is also known as general liability insurance or commercial liability insurance. It covers the costs associated with medical bills, property damage, and legal fees related to accidents or injuries that occur while on the job.

Workers` Compensation Insurance

Workers` compensation insurance is a requirement for all general contractors in the City of Chicago. Workers` compensation insurance covers employees who are injured on the job, including medical bills and lost wages. This protects contractors from potential lawsuits and provides peace of mind for employees.

Auto Insurance

If you or your employees use vehicles on the job, you must have commercial auto insurance. Commercial auto insurance covers accidents involving vehicles used for business purposes. It protects against damages caused by the vehicles, injury to employees or other people involved in the accident, and any property damage that may occur.

Errors and Omissions Insurance

Errors and omissions insurance is also known as professional liability insurance. It covers any mistakes or oversights made by the contractor that result in financial loss for the client. This type of insurance is not required for all general contractors, but it is highly recommended for those who provide design or consulting services.

Bond Insurance

Bond insurance is a requirement for general contractors who work on public projects in the City of Chicago. Bond insurance guarantees that the contractor will complete the project according to the contract specifications. If the contractor fails to meet these specifications, the bond insurance pays for any damages or losses that occur.


As a general contractor in the City of Chicago, it is essential that you carry the appropriate insurance coverage to protect both yourself and your clients. The insurance requirements set forth by the City of Chicago include liability insurance, workers` compensation insurance, auto insurance, errors and omissions insurance, and bond insurance. Be sure to meet these requirements before starting any construction or renovation project in the city. Failure to carry the appropriate insurance coverage could result in fines, penalties, and potential legal issues.