IL HB5512

Authorizes the Illinois Department of Insurance to contract with a private insurance broker to establish an Owner-Controlled Insurance Program covering construction contractors for state construction projects.

Owner-Controlled Insurance Program provides general and excess liability, professional liability, builders' risk, contractors' pollution liability, workers' compensation, and cyber liability insurance to construction contractors of all tiers.

Department must comply with the Illinois Procurement Code when procuring an insurance broker contract, and contracts with insurance brokers cannot exceed 5 years in duration.

All tiers of construction contractors are eligible to obtain insurance through the program to satisfy insurance requirements for contracting with state construction agencies including the Capital Development Board, Illinois Department of Transportation, Illinois Toll Highway Authority, and public universities.

Program aims to reduce insurance cost barriers for small contractors, minority-owned businesses, women-owned businesses, and businesses owned by persons with disabilities; increase workplace safety through harmonized standards; and achieve economies of scale for the state.