Demolition Contractors Insurance Requirements in Illinois

For any building constructed before 1978, assume asbestos and lead paint are present until a pre-demolition environmental survey proves otherwise. Require the demolition contractor to carry at least $1M in pollution/environmental liability covering asbestos, lead, and other hazardous material exposure. The survey should be performed by an independent environmental consultant, not the demolition contractor.

Require the demolition contractor's GL policy to specifically cover damage to adjacent structures from vibration, debris, and equipment operations. Consider requiring a pre-demolition condition survey of adjacent properties to establish a baseline. Notify adjacent property owners in writing before demolition begins and require the contractor to maintain dust and debris containment measures throughout the project.

Request a site-specific safety plan that addresses structural assessment, hazardous material handling, equipment operation, public protection, and emergency response. Verify the contractor's EMR is at or below 1.0, indicating an average or better safety record. Check their OSHA citation history and request their most recent three years of loss runs from their insurance carrier.

Interior demolition carries lower risk of structural collapse but still presents significant hazards including asbestos and lead exposure, electrical and plumbing hazards from live utilities, and dust and noise in occupied buildings. The GL requirements may be somewhat lower ($1M/$2M for minor interior demo) but workers' compensation and pollution liability requirements remain the same. Always require a hazardous materials survey before any interior demolition.

City of Chicago requires a demolition contractor license through Buildings Department. Must show $2M+ GL, WC, and environmental insurance. Asbestos notification to CDPH required 10 days before demo.

In Illinois, you as the property manager could be held liable for injuries or damages caused by an uninsured demolition contractors on your property. Illinois courts have consistently ruled that property owners have a duty to verify contractor insurance before allowing work to begin.