Learn about business insurance requirements and the most common policies for real estate agents and brokers in Illinois.
Which policies are required for real estate agents and brokers in Illinois?
If you have a commercial lease, your property manager may require you to purchase general liability insurance. Commonly purchased by real estate agents and brokers in Illinois, general liability insurance can protect your business from expenses associated with common mishaps, such as client property damage and injuries.
Your clients may require errors and omissions insurance in a contract. Also called professional liability insurance, errors and omissions insurance provides financial protection if a client files a lawsuit claiming your work caused financial harm because it was late, erroneous, or incomplete. Though E&O insurance is not required in Illinois, some states require it for real estate agents and brokers.
The state of Illinois requires nearly every employer to carry workers’ compensation coverage, even those with only one part-time employee, and business-owned vehicles must be covered by commercial auto insurance. Personal vehicles used for business purposes should have commercial coverage, as well.
What are the most common policies for a real estate agent or broker in Illinois?
General liability insurance
General liability insurance is the foundation of a real estate agent or broker’s business protection, with coverage that extends to client injuries, client property damage, and advertising injuries. Most commercial leases require you to have this coverage.
Errors and omissions insurance (E&O)
Many clients require proof of errors and omissions insurance before entering into contracts for professional services. This policy, also called professional liability insurance, can help cover legal expenses if a real estate agent or broker is sued for unsatisfactory performance or a work mistake.
Illinois workers' compensation
If you own a real estate agency or brokerage in Illinois that has any employees, you are required to carry workers’ compensation coverage. That's true even if you have one part-time employee. If you are a sole proprietor, the coverage is optional. However, if you break your arm by tripping on the steps at a property, or develop carpal tunnel syndrome after years of working on a computer, you can turn to your workers’ comp policy to help pay your medical bills and lost wages.
Business owner's policy (BOP)
Real estate agents and brokers often qualify for a business owner’s policy. This package helps your business save money by bundling commercial property insurance with general liability insurance at an affordable rate.
Commercial auto insurance
Personal auto insurance policies typically exclude business use, which means you could end up paying for an auto accident if it happens on a work errand with your personal vehicle. Commercial auto insurance is required for vehicles owned by real estate companies. Hired and non-owned auto insurance covers personal vehicles used for business purposes.
Cyber liability insurance
Cyber liability insurance can help real estate agents and brokers survive data breaches and cyberattacks experienced by your company. Many professional liability policies include this coverage, but check with your licensed Insureon agent to make sure.
What do real estate agents in Illinois pay for business insurance?
In Illinois, real estate agent insurance costs vary policy-by-policy compared to the national median, according to an analysis of Insureon applications. The biggest discount is for workers’ compensation insurance, which trends about $300 per year less than the national median. Illinois state law can impose severe penalties on companies that willfully fail to carry this policy; employers can be fined for every day of noncompliance, with a minimum fine of $10,000.
General liability insurance is noticeably more expensive in Illinois, which should prompt you to consider a business owner’s policy. With a BOP, you can bundle general liability and property insurance at a discounted rate. In all, real estate professionals in Illinois can expect to spend around $200 per month to secure their small business.
Save time and money with Insureon
Insureon’s industry-leading technology helps real estate agents and brokers in Illinois save time and money shopping for insurance by comparing policies from top U.S. carriers. Start a free online application to review quotes for the policies that best fit your business. Our insurance agents are licensed in Illinois and can answer your questions as you consider coverage.
To make the application go 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 real estate agent and broker insurance quotes today.