A contractor working on your Chicago building should carry public liability and property damage insurance, and you should see the certificate before work starts. Illinois law sets a minimum for people in the home repair business, and the City ties a required insurance amount to each general contractor license class. The amounts rise with the size of job the license allows. Rules change, so confirm current figures with the Department of Buildings.
If a contractor drops a brick off your scaffolding onto a parked car, or a crew member goes through your porch deck, the contractor's liability insurance is what stands between that bill and you. A contractor liability insurance certificate is the one-page proof that the coverage exists. Ask for it before you sign, not after something breaks.
What does Illinois require?
The state's Home Repair and Remodeling Act says people in the home repair business must keep public liability and property damage insurance. The minimums are $100,000 per person and $300,000 per occurrence for bodily injury, and $50,000 per occurrence for property damage. The exception is a business with a net worth of at least $1,000,000 (Illinois Home Repair and Remodeling Act).
Those are floors, not recommendations. A porch rebuild or a facade job can produce a claim bigger than the minimum, which is one reason to read the certificate and not just see that one exists. For the rest of what the Act puts on a contractor, see what your Illinois home repair contract must say.
What does the City require of a general contractor?
Chicago's general contractor license has classes, and each class carries its own required insurance. The classes are set by the value of the project (the fair market value of all materials and labor at the site). The City's general contractor license page lists these insurance amounts per occurrence:
| License class | Largest project allowed | Required insurance |
|---|---|---|
| Class A | Unlimited | $5 million |
| Class B | Up to $20 million | $3 million |
| Class C | Up to $10 million | $2 million |
| Class D | Up to $4 million | $2 million |
| Class E | Up to $500,000 | $1 million |
Two details from the City's page matter. The insurer must be rated B+ or better. And the higher amounts for Class C and Class D took effect January 1, 2026, enforced at policy renewal for licenses issued earlier (City of Chicago). These figures are volatile, so confirm them with the Department of Buildings.
Not every trade works under a GC license. Some licensed trades work within their own license, and the City exempts certain owners. If you are not sure which license your job needs, check any Chicago contractor's license in five minutes first, then ask about insurance.
How do you check a certificate?
A certificate is only useful if it matches the job. Read these items:
- The name. The insured business must be the company you are signing with, not a different or sister company.
- The coverage type. It should show general liability. Ask your contractor about workers' compensation coverage for the crew as well, and get the answer in writing.
- The dates. The policy must be active through the whole job, not expire in the second week.
- The amounts. Compare them with the Illinois floor and, for a licensed GC, the class amount above.
- The insurer. For GC licensing, the City requires the insurer to be rated B+ or better (City of Chicago).
Then call the insurance agent on the certificate and confirm the policy is active. A genuine contractor will not mind the call. A contractor who hesitates, hands you a photo of a document with no agent contact, or says "my guy will send it later" is giving you information. More of those signs are in the hiring questions to ask before you sign.
A certificate shows a policy existed on the day it was issued. Policies can lapse. For larger jobs, ask to be told if coverage changes during the work, and ask your own insurer how a contractor's mistake would be handled on your property.
What does this mean for your job?
Insurance is one piece of hiring well, next to the license, the written contract and a clear payment schedule. The full order of operations is in the Chicago contractor hiring guide. If you want an Akats crew to look at your building, our contact page gets you a free estimate, and we will gladly share our certificate of insurance.
Common questions
Illinois law requires people in the home repair business to carry public liability and property damage insurance unless net worth is at least $1,000,000. Chicago's general contractor license also requires insurance by license class. Confirm current rules with the Department of Buildings.
It depends on the license class. The City's page lists $5 million per occurrence for Class A down to $1 million for Class E, with an insurer rated B+ or better. Amounts for Classes C and D rose on January 1, 2026.
Ask for the certificate before you sign, check that the business name, dates and coverage amounts match your job, then call the agent listed on the certificate to confirm the policy is active.
Sources
- Illinois General Assembly: Home Repair and Remodeling Act, 815 ILCS 513/25
- City of Chicago, Department of Buildings: General Contractor License
Facts last checked: October 7, 2026.
This article explains general rules and common situations in Chicago. It is not legal advice, and City rules change. For a specific property, check with the Chicago Department of Buildings or a licensed professional.