summary
Introduced
02/07/2025
02/07/2025
In Committee
03/21/2025
03/21/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Insurance Code. Sets forth findings and definitions. Provides that the Department of Insurance is authorized to enter into a contract with a private insurance broker to establish an Owner-Controlled Insurance Program. Provides that the Owner-Controlled Insurance Program shall provide specified forms of insurance, if applicable, to construction contractors for the purpose of satisfying requirements to contract with a construction agency. Requires the Department to comply with the Illinois Procurement Code when procuring a contract for an Owner-Controlled Insurance Program. Provides that a contract between the Department and an insurance broker for the provision of an Owner-Controlled Insurance Program shall not exceed 5 years in duration. Provides that all tiers of construction contractors shall be eligible to obtain any form of insurance required to contract with a construction agency for the purposes of satisfying the insurance obligations necessary to execute a construction contract for a construction agency. Effective immediately.
AI Summary
This bill establishes an Owner-Controlled Insurance Program (OCIP) to help small, minority-owned, women-owned, and disability-owned businesses more easily obtain affordable insurance for public construction projects. The bill authorizes the Illinois Department of Insurance to contract with a private insurance broker to create a single insurance policy that covers all construction contractors at all tiers for an entire project or group of projects. The OCIP aims to reduce insurance barriers by providing coverage for multiple types of insurance, including general liability, professional liability, builders' risk, contractors' pollution liability, workers' compensation, and cyber liability. The program seeks to create more competitive bidding opportunities for smaller contractors, reduce insurance-related disputes, promote workplace safety, and achieve cost savings through economies of scale. The bill stipulates that the insurance contract cannot exceed five years, and the Department must follow Illinois Procurement Code guidelines when selecting an insurance broker. By providing a comprehensive, uniform insurance approach, the bill intends to support emerging contractors, ensure safe worksites, and help the state more effectively manage construction project insurance requirements.
Committee Categories
Government Affairs
Sponsors (1)
Last Action
Rule 19(a) / Re-referred to Rules Committee (on 03/21/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3768&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB3768.htm |
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