Why Contractors in Illinois Need Both Liability and Commercial Auto Coverage

Contracting in Illinois may involve risks that general liability and commercial auto insurance cover differently. All Insured Insurance Agency can help you understand how each policy applies and keep your business covered.

General Liability Coverage Explained

General liability coverage is often a critical consideration for contracting businesses. It can help cover legal fees and settlements if a business is held responsible for bodily injury or property damage at a job site. Incidents occurring elsewhere, such as at your business’s offices, are also typically covered. In some cases, proof of this coverage may be required by project owners and municipalities before work can begin or permits are granted.

Why Businesses Need Commercial Auto Coverage

Vehicles used for business are not typically covered under a personal auto policy. If a vehicle is used to haul machinery or transport a crew, a personal policy may deny a claim following an accident. Commercial auto insurance can fill that gap, covering accidents and related costs that may arise during work-related travel. Additionally, most states, including Illinois, require a policy if your business uses vehicles.

Where Coverage Gaps Can Occur

General liability and commercial auto insurance address different types of risk. General liability can exclude vehicle-related incidents, and commercial auto may not cover on-site accidents or workmanship issues. Not having both policies may leave a business responsible for costs related to accidents during work-related travel and on-site injuries or property damage.

How Business Size May Affect Your Coverage Needs

Coverage needs may vary depending on the scale of a contracting business. Key factors that may affect your insurance include:

• Number of employees and subcontractors
• Fleet size and vehicle usage
• Types and complexity of projects performed
• Overall business revenue and assets

Get Insured Today

Contact All Insured Insurance Agency to explore your general liability and auto insurance options and request a free custom quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.