Business Insurance Requirements for Nurses in Illinois

Nursing is a challenging yet rewarding profession; given the current shortage of nurses in the United States, it’s also in high demand. If you’ve chosen to work as a nurse outside of a hospital or other healthcare facility, business insurance can protect your assets and your career. Whether you’re a nurse practitioner in Chicago or an independent contractor in Rockford, choosing appropriate business insurance is vital to the health of your company. It’s important to consider your individual risks and business factors when selecting insurance to secure your company. There is no one-size-fits-all coverage plan, but a close look at your business will help determine which policies suit your practice.

Will your business require commercial space? Most leasing agreements require proof of commercial property and/or general liability insurance. Illinois state law requires virtually all small businesses with one worker or more to carry workers’ compensation insurance. Proof of professional liability insurance, also known as errors and omissions or nurse malpractice insurance, is required by Illinois state law in order to operate a nursing agency under the Nurse Agency Licensing Act.

Insureon makes shopping for insurance easy with industry-leading technology that gathers quotes from top U.S. carriers that fit your needs. Read more to find out which policies are most common for nurses in Illinois, and start an application to get your free quotes today.

Find the right insurance policy for your nursing practice

The most common policies for nurses in Illinois vary depending on a number of factors, including revenue, client contracts, and partnerships. The table below illustrates which policies might work best for your business type.


Business type General liability / BOP Professional liability Workers' comp
Sole proprietor X X X
Contractor / freelancer   X X
Employer X X X


General liability insurance: General liability insurance is the foundation of a nurse’s business protection with coverage that extends to bodily injury, client property damage, advertising injury, and the cost of legal defense. Most commercial leases require you to have this coverage.

Professional liability insurance: Many clients require proof of professional liability insurance before entering contracts for professional services. This policy, also called errors and omissions insurance or nurse malpractice insurance, can help cover legal expenses if you’re sued for unsatisfactory work or a business discrepancy, such as a misdiagnosis. Proof of professional liability insurance is required under Illinois state law in order to operate a nurse agency.

Business owner's policy (BOP): Nurses sometimes qualify for a business owner’s policy. This package helps your business save money by bundling commercial property insurance with general liability at an affordable rate.

Workers' compensation: Illinois state law requires workers’ compensation coverage for all small businesses that employ one worker or more. If an employee is injured on the job, workers’ comp can help pay for medical fees and lost wages. Independent contractors or sole proprietors can elect to cover themselves, but they are not mandated to do so by state law.

Nursing is a strenuous occupation. Nurses face a higher risk of workplace injury than workers in the construction or manufacturing industries, according to the Occupational Health and Safety Administration. Given the physical nature of the job, nurses commonly experience injuries related to overexertion and falls, slips, and trips, according to information from the Bureau of Labor Statistics, shown in the chart below.

Most Common Workplace Injuries: Nurses in the U.S.

Business insurance costs for nurses in Illinois

Despite the higher costs of doing business in Illinois, nurses can expect to spend slightly less than the national median to secure their small business, according to an analysis of Insureon applications. Workers’ compensation is generally the pricest policy for nurses across the country, given the profession’s high level of risk. Missed days of work are expensive both in terms of medical bills and unpaid time off. Workers’ comp can help recoup those lost wages and hospital bills in the event of a workplace injury. In all, Illinois nurses can expect to spend around $200 per month to ensure their company’s health.

Median Insurance Costs for Illinois Nurses

Save time and money with Insureon

Insureon’s industry-leading technology helps nurses in Illinois save time and money shopping for insurance by comparing policies from dozens of top U.S. carriers. Simply apply online and review quotes for the policies that best fit your business needs. Our insurance specialists are licensed in Illinois and can answer your questions as you consider coverage.

To make the application go even quicker, have this information ready:

  •   Workforce details, such as the number and types of employees.
  •   Current and projected revenue.
  •   Business partnerships.
  •   Insurance history and prior claims.
  •   Commercial lease insurance requirements.

Apply for free nurse insurance quotes today.