Protect Your Business with Commercial Auto Insurance in Illinois
Part of our guide to general contractors insurance in Illinois.
General contractors in Illinois understand the importance of protecting their business from unforeseen events. Commercial Auto insurance is a must-have for any contractor who uses vehicles for business purposes. With the state's severe winters and plaintiff-friendly courts, the risk of accidents and subsequent lawsuits is high. In fact, nearly every commercial client, real estate developer, and lender requires general contractors to carry at least $1 million in general liability and workers' compensation insurance as a condition of signing any construction contract. Commercial Auto insurance is specifically designed to cover vehicles used for business, providing liability, collision, and physical damage coverage for company cars, vans, and trucks.
Commercial Auto cost for general contractors in Illinois
Illustrative monthly commercial auto estimate for a small general contractor operation in Illinois. Actual pricing depends on revenue, payroll, coverage limits, claims history, and carrier. Get a personalized quote to see your real price.
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What Commercial Auto Covers for General Contractors in Illinois
Commercial Auto insurance in Illinois provides coverage for business-owned or business-used vehicles, including liability, collision, and physical damage. This coverage pays for damages or injuries caused by the vehicle in an at-fault accident. For example, if a general contractor's employee is driving a company vehicle and gets into an accident, Commercial Auto insurance would cover the damages to the other vehicle and any injuries sustained by the other party. However, it does not cover workers' compensation claims, which are handled by separate workers' compensation insurance policies. Additionally, Commercial Auto insurance does not cover damages to the vehicle caused by natural disasters, such as floods or hail, which would be covered by a separate comprehensive insurance policy.
Do General Contractors in Illinois Need Commercial Auto?
While Commercial Auto insurance is not legally required for general contractors in Illinois, it is often contractually required by clients, landlords, or contractors. Nearly every commercial client, real estate developer, and lender requires general contractors to carry at least $1 million in general liability and workers' compensation insurance as a condition of signing any construction contract. Without Commercial Auto insurance, general contractors in Illinois risk being held personally liable for accidents or damages caused by their vehicles, which could lead to financial ruin. Furthermore, many cities in Illinois, such as Chicago and Aurora, have strict regulations and requirements for commercial vehicles, making Commercial Auto insurance a practical necessity.
A Real Commercial Auto Claim a General contractor Could Face
A general contractor in Naperville, Illinois, was involved in an at-fault accident while driving a company vehicle, causing $50,000 in damages to the other vehicle and $20,000 in medical expenses for the other party. Commercial Auto insurance covered the entire amount, saving the contractor from financial liability. The accident occurred on a icy road during a severe winter storm, which is a common hazard in Illinois. The contractor's Commercial Auto insurance policy had a deductible of $1,000, which was paid out of pocket, but the rest of the claim was covered by the insurance policy.
What Commercial Auto Costs for General Contractors in Illinois
The cost of Commercial Auto insurance in Illinois varies depending on several factors, including revenue, payroll, coverage limits, deductible, and claims history. Estimated premiums range from $110 to $340 per month. General contractors in Illinois can lower their premium by maintaining a clean driving record, increasing their deductible, and installing safety features in their vehicles. Additionally, the cost of Commercial Auto insurance may be affected by the state's severe winters, with ice storms generating high slip-and-fall and vehicle damage claims, and the plaintiff-friendly courts in Cook County and Chicago. For example, a general contractor in Joliet, Illinois, may pay a higher premium due to the city's high rate of accidents and lawsuits.
How to Get Commercial Auto in Illinois
To get Commercial Auto insurance in Illinois, general contractors should gather their business information, including revenue, payroll, and coverage limits. They should also research different insurance providers and compare quotes to find the best rate. When comparing quotes, contractors should consider the deductible, coverage limits, and any additional features, such as roadside assistance. In cities like Chicago, general contractors may need to meet specific requirements, such as having a certain level of liability coverage. To get started, general contractors in Illinois should have their business information ready and compare Commercial Auto quotes from different providers.
Frequently asked questions
Will my Commercial Auto premium jump after one claim?＋
Yes, it may increase. The amount of the increase depends on the severity of the claim and the insurance provider's policies. For example, if the claim is minor and the contractor has a good driving record, the premium may only increase by a small amount. However, if the claim is severe or the contractor has a history of accidents, the premium may increase significantly.
Can I get a COI same-day for a client?＋
Yes, it's possible. Many insurance providers offer same-day certificates of insurance (COI) for Commercial Auto policies. However, this may depend on the provider and the specific policy. General contractors in Illinois should check with their insurance provider to see if same-day COI is available and what the requirements are. Typically, the provider will need to verify the contractor's business information and coverage limits before issuing a COI.
Does a sole proprietor need Commercial Auto?＋
Yes, if they use a vehicle for business purposes. Even if the sole proprietor is the only employee, they still need Commercial Auto insurance to protect their business from vehicle-related accidents and damages. In fact, sole proprietors may be at higher risk because they often drive their personal vehicles for business purposes, which can blur the line between personal and business use. Commercial Auto insurance can help sole proprietors in Illinois protect their business and personal assets in the event of an accident.
What's not covered by Commercial Auto?＋
Commercial Auto insurance does not cover workers' compensation claims, which are handled by separate workers' compensation insurance policies. Additionally, it does not cover damages to the vehicle caused by natural disasters, such as floods or hail, which would be covered by a separate comprehensive insurance policy. General contractors in Illinois should review their insurance policies to understand what is covered and what is not, and consider purchasing additional coverage if necessary.
Can I cancel my Commercial Auto policy at any time?＋
Yes, but there may be penalties. General contractors in Illinois should review their insurance policy to understand the cancellation terms and any potential penalties. Typically, insurance providers require a written notice of cancellation, and there may be a fee for early cancellation.
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Other coverages general contractors in Illinois should know
This article is for general educational purposes and is not insurance or legal advice. Coverage requirements and pricing in Illinois change over time and vary by business. Verify current rules with the Illinois Department of Insurance and a licensed agent before purchasing a policy.