Business Insurance Requirements for Lawyers in Illinois

Opportunity abounds for lawyers in the nation’s fifth largest economy. Corporate attorneys in particular benefit from Chicago’s national dominance in attracting new or expanded corporate facilities, and the growing tech sector is creating opportunities in and out of the city.

Just as each client you represent has different needs, there is no one-size-fits-all approach to choosing business insurance to protect your practice. A tax attorney in Rockford has a different level of risk than a group of litigators in Chicago. Lawyers throughout Illinois should consider the individual risks and key business factors that make up their practice. Will your practice move into a commercial space? You will likely be required to show proof of property insurance and/or general liability insurance policies as part of your lease agreement. Illinois state law requires nearly all small businesses with employees to carry workers’ compensation insurance. State law does not require lawyers to carry professional liability insurance, also known as errors and omissions insurance or lawyer malpractice insurance. However, you are required to report your carriage status to the state bar. Lawyers without a policy must also submit a four-hour self-assessment every other year to the Illinois State Supreme Court. As attorneys are often entrusted with sensitive client information, another policy to consider is cyber liability insurance. In the event of a data breach or other cyberattack, this policy can potentially assist with recovery costs.

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 lawyers in Illinois, and start an application to get your free quotes today.

Find the right insurance policy for your law firm

The most common policies for Illinois lawyers 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 Cyber liability
1099 or independent contractor X X   X
Business owner with employees X X X X
Solo business owner X X   X


General liability insurance: General liability insurance is the foundation of a lawyer’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 lawyer malpractice insurance, can help cover legal expenses if you’re sued for unsatisfactory work or a business discrepancy.

Cyber liability insurance: Cyber liability insurance can helps lawyers survive data breaches and cyberattacks by aiding with recovery expenses. This policy is recommended for businesses that handle sensitive data such as credit card numbers, passwords, or Social Security numbers.

Business owner's policy (BOP): Lawyers 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.

Illinois workers' compensation: Illinois state law requires workers’ compensation coverage for every small business with at least one employee. If an employee is injured on the job, workers’ comp can help pay for medical fees and lost wages. Independent contractors or solo business owners have the option to cover themselves under a workers’ compensation policy, but they aren’t legally required to do so. Independent attorneys should consider the specialization of their practice when making coverage decisions. Areas of law that involve emotionally distraught clients, such as family and criminal law, expose attorneys to the possibility of reactive violence. Other commonplace injuries such as trips and falls affect lawyers in all specializations.

Business insurance costs for lawyers in Illinois

Business insurance costs in Illinois align fairly closely with the national median, according to an analysis of Insureon applications. However, Illinois lawyers can expect a slight discount for a workers’ compensation policy, which is a requirement for small businesses in Illinois with one worker or more. In all, an Illinois lawyer can expect to spend less than $150 per month for general liability and workers’ comp coverage.

Median Insurance Costs for Illinois Lawyers

Save time and money with Insureon

Insureon’s industry-leading technology helps lawyers 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 lawyer insurance quotes today.