Your Guide to Non-Emergency Medical Transportation (NEMT) Insurance in Chicago and throughout Illinois

Starting a Non-Emergency Medical Transportation (NEMT) business in Illinois requires compliance with strict regulations, including insurance coverage tailored to the unique needs of transporting individuals who require medical assistance.  This guide explains the insurance requirements, costs, and steps to becoming a certified NEMT provider, with a few additional resources to help you move forward.

How to Become a NEMT Provider in Illinois

Step 1: Understand the NEMT Model

NEMT providers help fill a critical gap by transporting passengers to medical appointments when emergency care is not needed.  Many clients are seniors, individuals with disabilities, or people with limited mobility—especially in areas where reliable transportation is harder to access.

Step 2: Set Up and Register Your Business

To operate legally, you’ll typically need to:

• Choose a business structure: LLC, corporation, or sole proprietorship
• Apply for an EIN: Used for tax reporting, payroll, and business banking
• Register with the Illinois Secretary of State: File the appropriate formation documents and keep your registration active

Step 3: Obtain Licenses and Certifications

Depending on the type of operation, you may need:

• Adequate vehicle registration that meets IL Sec of State requirements
• Driver credentials: Ensure drivers meet licensing requirements and complete any background checks or training your contracts require
• CPR certification: Commonly required for NEMT drivers, depending on the work being performed and contract standards
• Vehicle inspections and equipment: Vehicles may need to pass safety inspections and have ramps/lifts if transporting wheelchair passengers

Step 4: Put the Right Insurance in Place

Insurance is not just a checkbox, it’s also a core part of staying compliant and protecting your business.  Most NEMT operators need commercial auto liability, and many also require additional coverage depending on contracts, passenger type, and equipment. (See the insurance and pricing sections below.)

Step 5: Build Relationships with Transportation Brokers

Working with transportation brokers such as Modivcare or MTM can help generate consistent trip volume.  These contracts often come with additional requirements, including higher insurance limits and additional forms and types of coverage such as general liability including sexual abuse and molestation, so it’s important to review contract terms before binding coverage. 

How Much Does Non-Emergency Medical Transportation Insurance Cost in Illinois?

The cost of NEMT insurance in Illinois depends on factors such as your driving record, type of vehicle and location.

Factors That Impact Insurance Costs

1. Type of Coverage: Liability-only policies are cheaper but provide limited protection.  Comprehensive plans with additional coverages (e.g., general liability and Sexual Abuse and Molestation coverage) are more expensive.
2. Vehicle Details:  Premiums vary based on the size, type, and condition of your vehicle and/or fleet.
3. Operational Area: Urban areas like Chicago often carry higher insurance rates due to increased risk of auto accidents, crime and more.
4. Claims History: A clean claims history helps to lower your insurance premiums over time.

Average Costs

• Basic Liability Coverage: $3,080 –$5,000 per year, per vehicle.
• Comprehensive Policies: $5,000–$7,000 per year, per vehicle, depending on coverage needs and fleet size.
• Additional Coverages: General liability including Sexual Abuse and Molestation (SAM) coverage can add $500–$2,000 per year.

For more detailed pricing, visit our in-depth guide on NEMT insurance costs.

NEMT Insurance Application

Applying for Non-Emergency Medical Transportation insurance has never been easier with Insured ASAP’s convenient online application. Our streamlined process allows you to get started quickly and efficiently, whether you’re a new operator or renewing your policy. Simply fill out the required details about your business, vehicles, and drivers, and our team will provide you with a competitive quote tailored to your needs.

With Insured ASAP, you’ll save time and avoid the hassle of traditional paperwork. Click here to start your NEMT insurance application now and get one step closer to securing your business today!

Certificate of Insurance for NEMT License

What Is a Certificate of Insurance (COI)?

A Certificate of Insurance (COI) is a document proving your NEMT business meets insurance requirements set by Illinois law, local municipalities, or brokers.  It outlines your insurance policy details, including coverage limits and policyholder information.

Why Is a COI Important?

• Compliance with Illinois Law: A COI is mandatory for obtaining commercial vehicle plates and meeting licensing requirements.
• Contractual Obligations: Many brokers, like MTM and Modivcare, require a COI to sign up.
• Proof of Coverage: It serves as evidence of protection against liabilities during operations.

How to Obtain a COI

1. Work with Your Insurance Provider: Ensure the policy covers Illinois and/or Chicago-specific requirements.
2. Submit Documentation: Provide vehicle details, driver certifications, and fleet information.
3. Online Submission: Many providers allow COI applications via an online form for convenience.
4. Ensure Timely Renewals: Maintain updated certificates as policies are renewed or changed.

Insurance Requirements for NEMT in Illinois

Minimum State Requirements

To operate a Non-Emergency Medical Transportation business in Illinois, you must meet the state’s minimum insurance requirements. This includes:

• Liability Coverage: $250,000 per person / $250,000 per incident / $50,000 property damage or $300,000 combined single limit.
• Uninsured/Underinsured Motorist Protection: Ensures coverage if the other party is not insured.
• Workers’ Compensation: Covers driver injuries during operations. (Only required for businesses that have employees)

Additional Coverages for Brokers

• General Liability Insurance: $500,000 to $2,000,000 in coverage, depending on broker requirements.
• Sexual Abuse and Molestation (SAM) Coverage: Mandated by certain brokers for passenger safety.
• Physical Damage Coverage: Protects against damages to fleet vehicles.

Insurance Requirements for NEMT in Chicago

The City of Chicago has slightly higher insurance coverage requirements for Non-Emergency Medical Transportation companies

• Liability Coverage: $350,000 CSL bodily injury and property damage liability.
• Uninsured/Underinsured Motorist Protection: Ensures coverage if the other party is not insured.
• Workers’ Compensation: Covers driver injuries during operations. (Only required for businesses that have employees)

Online Resources and Additional Tips

1. Leverage Online Applications: Many insurance providers offer online quote systems, making it easy to compare policies and obtain COIs.
2. Partner with Experts: Specialized insurance agencies like Insured ASAP can guide you through the process and provide cost-effective solutions.
3. Stay Updated on Requirements: Regulations frequently change. Joining NEMT trade associations can help you stay compliant.

By following these steps and understanding insurance requirements, you can successfully start and operate a compliant NEMT business in Illinois. For tailored guidance, reach out to experienced insurance providers or brokers who understand the complexities of the NEMT industry.