Illinois general contractor license and insurance requirements

If you’re interested in becoming a general contractor in Illinois, there is a lot of potential for business growth and revenue.

Since a general contractor is responsible for all components of a construction project, from budgeting to building codes, there are many things to consider as you begin your contracting business, including licensing and insurance.

Most states require general contractors to be licensed, but the requirements are different in each location. In this article, we will cover the process of getting licensed in Illinois, including:

• Do you need a license to be a contractor in Illinois?
• Chicago contractor license requirements
• Aurora contractor license requirements
• Joliet contractor license requirements
• Insurance requirements for Illinois general contractors
• Illinois reciprocity license information
• How NEXT supports Illinois general contractors

Do you need a license to be a contractor in Illinois?

In Illinois, where you live determines your contractor license application requirements.

While the Prairie State doesn’t require a general contractor license at the state level, licenses are typically regulated at the city or county level, and those requirements often vary. There are exceptions for roofing and plumbing licenses, which require state permits.

The process of applying for a general contractor license is similar in cities across Illinois. Contact your local county or municipality office to learn about specific requirements in your area.

Each city also has different licensing fees, insurance, and bond requirements. You’ll need to check with your county or city to complete the local requirements for new licenses and renewals. Once you meet each requirement and pass examinations, you’ll be able to receive the license you need.

Since Illinois does not issue state-specific license requirements, checking local regulations is a top priority.

Chicago contractor license requirements

You’ll need to take several steps to get your general contractor license in Chicago, including completing an application, purchasing general contractor business insurance, and paying a fee.

Chicago also requires licenses for specific trade workers, including mason contractors, plumbing contractors, wreckers, and electrical contractors.

You’ll need to provide documentation to the Chicago Department of Buildings with your application to determine if you are qualified for a license. The steps for the application include:

• Describe the work and services you aim to perform.
• Specify the classification of license you are applying for. (Class A, B, C, D, E)
• Clarify your business structure and provide a business license.
• Identify and verify by affidavit that the applicant or member of your business entity is financially stable.
• Submit your certificate of insurance with the City of Chicago as additionally insured and policy limits ranging from $1 million to $5 million, depending on your license type.
• Sign and complete the application.
• Pay all licensing fees.

Chicago general contractor license fees

The major difference between classes is the amount of insurance required for each classification. There are five license classifications in Chicago. Depending on the cost of the projects you are working on, there are different fees and insurance minimums for each classification.

The classes and fees are:

• Class A General Contractor: A $2,000 fee for projects with unlimited value, and a minimum insurance of $5 million per occurrence (primary or umbrella) is required.
• Class B General Contractor: A $1,000 fee for projects up to $10 million; the requirement is $3 million per occurrence (primary or umbrella).
• Class C General Contractor: A $750 fee for projects up to $5 million; insurance requirements are $1 million per occurrence and $2 million aggregate.
• Class D General Contractor: A $500 fee for projects up to $2 million; insurance requirements are $1 million per occurrence and $2 million aggregate.
• Class E General Contractor: A $300 fee for projects up to $500,000; insurance requirements are  $1 million per occurrence.

Contractor license renewals in Chicago

Licensed contractors must renew each year through Continental Testing Services. Be sure to begin the process of renewing your contractor license 90 days before it expires. In Chicago, the process for general contractor license renewal includes these steps:

• Complete and sign the renewal form.
• Obtain an updated certificate of insurance.
• Provide a signed copy of the Chicago general contractor license affidavit.
• Provide the business structure documents.
• Write a check for the annual registration fee.
• Mail the package.

Aurora contractor license requirements

If you’re a general contractor looking to set up shop in Aurora, here’s what you need to know. You’ll need to fill out and submit a Contractor Registration Application to get your license. (This is different from a Public Works Contractor, which requires a separate license.)

Depending on the type of work you’ll do, you may also need to provide these supporting documents:

• State of Illinois license/registration
• License/Certificate from the municipality where tested
• Certificate of Insurance & Workers’ Comp
• Business card
• Bond information

If you’re planning to do electrical or mechanical work, the city recognizes certifications from the International Code Council (ICC). This includes categories like Standard Master Electrician and Master Mechanical Certification. Otherwise, you must sit for a contractor test.

You’ll need to provide a certificate of insurance for general liability insurance with Aurora as the primary and non-contributory additional insured. Your policy should cover at least $1,000,000 general aggregate with $500,000 per occurrence. You’ll also need to have workers’ comp insurance, as required by Illinois state laws.

If you are registering for a dumpster license, Aurora contractors must have a surety bond in the amount of $5000. The bond must be valid for a minimum of one year.

Joliet contractor license requirements

In Joliet, general contractors must register with the Building & Inspectional Services Division and prove they are insured, licensed and bonded for their respective trades. There is no fee to register.

• Contractors installing or maintaining signage need a Sign Erector’s License.
• HVAC contractors must pass a city-administered HVAC exam, even if they hold a state-recognized license.

Additionally, a letter of intent is required for each electrical, plumbing and HVAC subcontractor on projects, as part of the registration process.

As for insurance, the contractors need to include a certificate of insurance with general liability coverage. This requirement applies to plumbing, HVAC, electrical and roofing contractors.

Insurance requirements for Illinois general contractors

In Illinois, business insurance is required as part of the licensing process for general contractors. However, general contractors aren’t licensed at the state level, so you’ll need to check with your local licensing authority for requirements.

General Liability insurance

To get a general contractor license, you’ll likely need general liability insurance in Illinois. Commercial general liability insurance helps protect you against expenses related to an accident or injury that could occur at your job site.

It helps provide coverage for injuries that happen to nonemployees as a result of your work, legal defense and judgments, and property damage caused by your business operations or products.

Learn more about general liability for contractors.

Workers’ Compensation insurance

General contractors in Illinois are required to carry workers’ compensation insurance if they have at least one full-time or part-time employee. It helps cover medical expenses and lost wages for employees who are injured or become ill as a result of their job.

Learn more about workers’ comp for contractors.

Tools and Equipment insurance

Tools and equipment insurance for general contractors helps cover your tools and equipment. Coverage can include things like power tools, hand tools and heavy equipment. It can help protect your business from financial loss if your tools are stolen, damaged, or destroyed.

Commercial Auto insurance

If you have a business-owned vehicle, you may also need commercial auto liability insurance. If there is an accident, commercial auto coverage can help you pay for injuries to you or someone in your vehicle, injuries to other people, and property damage.

Illinois requires drivers to have the following minimum coverage amounts:

• $25,000 for each person in an accident;
• $50,000 for all persons in any one accident; and
• $20,000 for property damage to another person.

Commercial Property insurance

Commercial property insurance can help protect the buildings, gear, and equipment your business relies on if something like vandalism or equipment breakdown happens.

Illinois reciprocity license information

Illinois does not offer statewide reciprocity for general contractor licensure; check your local authority. Aurora, for example, accepts ICC certifications for some trades.

How NEXT supports Illinois general contractors

NEXT Insurance has helped thousands of general contractors get the right business insurance in Illinois at the right cost.

With our online services, you can apply for coverage, get recommendations and get covered within minutes. It’s easy enough to do from your mobile device or computer, so you can get to work right away. You have 24/7 access to your certificate of insurance via web or mobile, and can share extra copies at no additional cost.

Start a free instant quote today.

Do you have projects in a different U.S. state? Visit our summary of general contractor license requirements in every state.

This information has been provided as a service. It is correct and up-to-date to the best of our knowledge; however, it is in no way intended to offer legal advice and you must always consult with local authorities before you make any business decisions. Regulations and requirements may change at any time.