TrackMyVendor › Resources › IL Subcontractor Insurance Requirements for GCs
Illinois Subcontractor Insurance Requirements: What GCs Must Require from Subs
What coverage general contractors should require from subcontractors on Illinois job sites — where workers' compensation is mandatory for nearly every worker and willful non-compliance is a felony.
Illinois subcontractor insurance requirements are set by contract, not by a statutory minimum — but Illinois differs from Texas in one important way: workers' compensation is mandatory for nearly every employee, and willful non-compliance is a felony. GCs typically require each sub to carry commercial general liability ($1M per occurrence / $2M aggregate), commercial auto ($1M combined single limit), employer's liability, and Illinois workers' compensation. Name your company as additional insured (primary and non-contributory), require a waiver of subrogation, spell out the limits in the subcontract, and verify them on the COI before the sub starts.
In this guide
Standard Insurance Requirements for Illinois Subcontractors
Most general contractors in Illinois require subcontractors to carry four core coverages before they can work on a project. With the exception of workers' compensation — which Illinois mandates by law — these are commercial standards GCs set contractually to protect themselves from liability arising from their subs' work.
| Coverage type | Typical minimum | What it covers |
|---|---|---|
| Commercial General Liability (CGL) | $1M per occurrence $2M aggregate | Bodily injury and property damage caused by the sub's operations, completed work, and products |
| Workers' Compensation | Statutory limits (mandatory — see below) | Medical expenses and lost wages for the sub's employees injured on the job |
| Employer's Liability | $500K / $500K / $500K | Lawsuits from injured employees beyond WC (commonly bundled with the WC policy) |
| Commercial Auto Liability | $1M combined single limit | Bodily injury and property damage from vehicles used in the sub's operations |
| Umbrella / Excess Liability | $1M–$5M (project dependent) | Excess coverage above CGL, auto, and employer's liability limits |
Workers' Compensation — Mandatory in Illinois
Illinois is the opposite of Texas on this point. Under the Illinois Workers' Compensation Act, nearly every employer with one or more employees — full-time or part-time — must carry workers' compensation insurance. Construction is one of the most heavily enforced industries.
Non-compliance is a crime
Failing to carry required workers' comp in Illinois can bring fines of up to $500 per day of non-compliance, work-stop orders, and — for willful failure — felony charges against the business and its officers. A sub operating without WC is not just a liability risk to you; they are breaking the law.
What to require
- Require all subs to carry Illinois workers' compensation at statutory limits — no exceptions for "1099 crews"
- Require employer's liability at $500K / $500K / $500K or higher, usually bundled with the WC policy
- Confirm the WC certificate names the correct legal entity and covers the workers actually on your site
- Watch for worker misclassification — subs labeling employees as independent contractors to avoid WC is a recurring Illinois enforcement issue and a liability trap for the GC
Sole proprietors and exemptions
A genuine sole proprietor with no employees may be exempt from carrying WC on themselves, but the moment they bring a helper on site, coverage is required. For solo subs claiming an exemption, require employer's liability or a higher general liability limit to compensate, and document the exemption in writing.
Additional Insured and Waiver of Subrogation
The certificate of insurance alone is not enough. Two additional provisions belong in every subcontract and should be reflected on the COI:
Additional insured endorsement
Require that your company (and the project owner, where applicable) be named as an additional insured on the sub's CGL and auto policies. This gives you the right to make a claim directly under the sub's policy if their work causes a loss. Specify that the status applies on a primary and non-contributory basis, so the sub's policy responds before your own.
Waiver of subrogation
Require a waiver of subrogation on the sub's workers' compensation and general liability policies in favor of your company. Without it, the sub's insurer can pursue you to recover what they paid on a claim — even after settling with the injured party.
Adjusting Minimums by Project Type
The standard minimums above work for typical commercial projects. For larger or higher-risk work — and for downtown Chicago high-rise work in particular — adjust upward:
| Project type | Suggested CGL minimum | Suggested umbrella |
|---|---|---|
| Residential remodel / small commercial | $1M / $2M | Not always required |
| Mid-size commercial ($1M–$10M project value) | $1M / $2M | $1M–$2M |
| Large commercial / high-rise ($10M+) | $2M / $4M | $5M+ |
| High-hazard trades (demo, roofing, structural) | $2M / $4M | $5M+ |
Your contract with the project owner usually sets a floor — whatever they require of you flows down to your subs. Read your prime contract before setting sub requirements.
Collecting and Tracking Certificates of Insurance
Knowing what to require is the easy part. Collecting COIs from every sub — and keeping them current as policies renew — is where most GCs fall behind. A COI that was valid at onboarding can expire three weeks into a six-month project with no one noticing.
- Collect a new COI before work begins, not after. Never let a sub on site without a current certificate on file.
- Verify the COI yourself — don't rely on the sub's broker alone. Confirm the WC line specifically, given Illinois's mandate.
- Track expiration dates. Set a reminder 30+ days before each COI expires to request a renewal.
- Store COIs somewhere you can retrieve them quickly — not in an email folder with no structure.
For larger rosters, use magic-link vendor onboarding to let subs upload their own certificates directly into your dashboard. Automated alerts notify you at 90, 60, 30, and 7 days before any COI expires, and per-project compliance views show exactly which subs are covered for each job.
You can also check each sub's Illinois license alongside their COI. Use the Illinois contractor license lookup →
Track COIs and licenses for all your Illinois subs
TrackMyVendor collects, parses, and monitors certificates of insurance automatically — so nothing expires without you knowing. Free for your first 25 subcontractors.
Start free →Frequently Asked Questions
Is workers' compensation required for subcontractors in Illinois?
What is the minimum general liability insurance for a subcontractor in Illinois?
Do I need to be listed as additional insured on my Illinois sub's policy?
Does my sub's COI tell me if they're licensed in Illinois?
How often should I collect updated certificates of insurance?
Related guides and tools