OWNER-CONTROLLED INS PROGRAM
HB3768 amends the Illinois Insurance Code to create a new Article XLVIII establishing an Owner-Controlled Insurance Program (OCIP) for public construction projects. The bill authorizes the Department of Insurance to contract with a private insurance broker to set up the program, which would provide specified insurance coverages, when applicable, to construction contractors so they can meet insurance requirements for contracts with state construction agencies. The bill identifies the intended purpose of the program as reducing barriers for small, minority-owned, women-owned, and disability-owned businesses, improving affordability and competitiveness, and promoting safer, more uniform project coverage.
The bill defines key terms such as construction, construction agency, construction contractor, and owner-controlled insurance program. It specifies that the OCIP may include general and excess liability, professional liability, builders’ risk, contractors’ pollution liability, workers’ compensation, and cyber liability coverage. The Department must follow the Illinois Procurement Code when procuring the broker contract, and any contract for the program may not exceed five years. The bill also states that all tiers of construction contractors are eligible to obtain the insurance needed to satisfy requirements for construction contracts with a construction agency.
If enacted, HB3768 would add a new insurance framework to the Illinois Insurance Code that centralizes certain insurance coverage for public construction projects through a state-managed OCIP. It would affect the Department of Insurance, private insurance brokers, state construction agencies, and contractors bidding on public work, especially subcontractors and smaller firms that may face difficulty obtaining affordable coverage. The bill would not broadly regulate all construction insurance, but it would create a state-authorized option for public projects and set procurement, eligibility, and contract-duration rules for administering that option.
The bill’s stated purpose and framing are strongly supportive of expanding access to public construction work, with emphasis on helping small businesses and historically underrepresented contractors compete on more equal footing. The findings section presents the OCIP as a cost-saving, safety-improving, and efficiency-enhancing tool for the State. No committee testimony or recorded votes were provided, so there is no documented opposition or amendment debate in the supplied materials.
The main policy questions implied by the bill are whether a state-run OCIP will actually reduce costs and improve access, and how the Department of Insurance will administer the program through a private broker while complying with procurement rules. Potential points of contention include the use of a centralized insurance model versus traditional contractor-provided coverage, the scope of eligible coverages, and whether the program will meaningfully benefit small and disadvantaged contractors without adding administrative complexity. Because no transcripts or votes were provided, no specific person or group is identified as opposing these provisions in the available record.