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Illinois Plumbing License Law (225 ILCS 320/3) sets strict licensing and insurance rules for plumbing professionals in Illinois. If you work as an independent contractor or run a plumbing business, you need to have the right plumbers insurance in Illinois. This insurance plays a key role in complying with the law, protecting your finances, and covering your liabilities.
This guide goes over:
225 ILCS 320/3 states that licensed plumbers can design, plan, and perform plumbing work in Illinois. This means:
Illinois state law requires plumbing professionals to have this insurance coverage:
Illinois requires liability and workers’ compensation insurance to:
The cost of Illinois plumbers insurance varies based on business size, coverage limits, and claims history. On average:
The price of plumbers insurance in Illinois changes based on location, with big cities costing more because of increased risks and pricier claims. Let’s look at the five costliest cities for plumbing insurance in Illinois and the reasons behind their high rankings.
– Costs Go Up As Construction Grows
Average General Liability Coverage: $1,200 – $2,500 yearly
Things That Affect Cost:
Aurora has a booming market for new plumbing companies, which causes insurance companies to charge higher premiums to handle risk.
– The Priciest City for Plumbers Insurance
Average General Liability Insurance: $1,500 – $3,000 yearly
Things That Affect the Cost:
Chicago plumbers also shell out more for:
The following are common questions about Plumbers Insurance in Illinois.
Yes, Illinois law requires all licensed plumbers and plumbing contractors to have general liability insurance. Workers’ compensation insurance is mandatory if you have employees.
The state mandates general liability insurance with at least $100,000 per person and $300,000 per occurrence, property damage coverage of $50,000 per occurrence, workers’ compensation for businesses with employees, and a $20,000 surety bond for plumbing contractors.
Costs vary based on coverage limits, business size, and claims history. General liability typically ranges from $600 to $1,500 per year, workers’ compensation from $3,000 to $6,500, a surety bond from $100 to $500, and commercial auto insurance from $1,200 to $2,500 per year.
Average rates are $0.91 per $100 of payroll, varying by industry (e.g., roofing: $12.01–$29.70, clerical: $0.11–$0.27).
Operating without the required insurance can result in fines, license suspension, or revocation by the Illinois Department of Public Health. You may also be personally liable for damages and lawsuits.
A $20,000 surety bond is required for plumbing contractors to protect clients from financial loss due to incomplete work, contract violations, or poor workmanship. It ensures compliance with state plumbing laws.
No, sole proprietors without employees are not required to carry workers’ compensation insurance, but personal injury or disability coverage is recommended.
