# Illinois contractor insurance requirements

> What Illinois law says about workers' comp, contractor license insurance and indemnity clauses, and what to check on a contractor COI for a project there.

Reviewed Oct 28, 2026 by Forsured. Source: https://forsured.ai/coi-requirements/illinois/

## The short version

- Workers' comp required at: 1 employee
- License insurance minimum: No statewide minimum
- Anti-indemnity statute voids: Own negligence, even in part

## Workers' comp in Illinois

Illinois requires most employers with full-time or part-time employees to carry workers' comp from the first day of employment.

Agency: [Illinois Workers' Compensation Commission](https://iwcc.illinois.gov/coverage.html)

## Contractor licensing and insurance

We found no statewide general liability minimum tied to a general contractor license. Illinois has no statewide general contractor license. Cities and counties can set their own licensing and insurance rules, so check where the project is.

## Indemnity and additional insured clauses

Illinois's anti-indemnity statute (740 ILCS 35/1) voids construction contract clauses that make a contractor indemnify another party for that party's own negligence, even in part. Clauses limited to the contractor's own share of fault generally hold up.

## What to check on a contractor COI for a Illinois project

1. **Workers' comp.** Nearly every contractor with employees needs it in Illinois. A contractor with a crew and no workers' comp on its COI is a gap. For an out-of-state contractor, confirm Illinois is listed on the workers' comp policy.
2. **General liability.** Illinois doesn't set a statewide floor for a general contractor license, so your project requirements set the bar. Compare each limit on the COI with what the contract asks for.
3. **Additional insured.** The endorsement is a separate promise from the indemnity clause, so check both. Ask for the endorsement itself, not just a box ticked on the certificate.
4. **Dates.** Every policy should run through the end of the job. A COI only shows coverage on the day it was issued, so check again at each renewal.

## Common questions

### Do contractors need workers' comp in Illinois?

Illinois requires most employers with full-time or part-time employees to carry workers' comp from the first day of employment.

### Does Illinois require contractors to carry general liability insurance?

We found no statewide general liability minimum tied to a general contractor license. Illinois has no statewide general contractor license. Cities and counties can set their own licensing and insurance rules, so check where the project is.

### Can a Illinois construction contract make a contractor cover another party's negligence?

Illinois's anti-indemnity statute (740 ILCS 35/1) voids construction contract clauses that make a contractor indemnify another party for that party's own negligence, even in part. Clauses limited to the contractor's own share of fault generally hold up.

## Sources

1. [Insurance coverage](https://iwcc.illinois.gov/coverage.html), Illinois Workers' Compensation Commission
2. [Illinois workers' comp requirements](https://onpay.com/insights/workers-comp-requirements-by-state/illinois/), OnPay, Apr 2026
3. [Anti-Indemnity Statutes in All 50 States (2023)](https://grsm.com/wp-content/uploads/2023/10/Anti-Indemnity-Statutes-2023.pdf), Gordon Rees Scully Mansukhani, 2023
4. [State Workers' Compensation Officials](https://www.dol.gov/agencies/owcp/wc), U.S. Department of Labor

General information, not legal advice. Confirm with the state agency, your broker or your attorney.

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Forsured: construction insurance compliance software. https://forsured.ai · hello@forsured.ai