Business Insurance Requirements for Real Estate Professionals in Illinois

Demand for housing in Illinois is strong. From Peoria to Chicago, inventory is shrinking, median home prices are rising, and listings are being sold in fewer days. The demands of a strong seller’s market bring plenty of opportunity – and stress – for real estate agents and brokers in Illinois. Choosing business insurance doesn’t have to be stressful.

The key to finding a policy that best secures your small business is to consider your individual risk along with relevant business decisions. Will your business require commercial space? Most leasing agreements ask for proof of general liability and/or commercial property insurance. You may also be asked by potential clients to show proof of professional liability insurance before they work with you. Illinois state law does not require real estate agents to hold this policy, also called errors and omissions or real estate liability insurance, but it is recommended by Illinois’ real estate association. Illinois state law does require most small businesses with employees to carry workers’ compensation insurance. Sole proprietors can elect for coverage, but it is not required unless they employ one or more workers.

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 real estate agents and brokers in Illinois, and start an application to get your free quotes today.

Find the right insurance policy for your realty business

The most common policies for real estate professionals in Illinois vary depending on revenue, client contracts, partnerships, and other factors. The table below illustrates which policies might work best for your business type.


Business type General liability / BOP Professional liability Workers' comp
1099 or independent contractor X X  
Business owner with employees X X X
Solo business owner X X  


General liability insurance: General liability insurance is the foundation of a real estate agent or broker’s business protection. Coverage 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 real estate agent liability insurance, can help cover legal expenses if you’re sued for unsatisfactory work or a business discrepancy.

Business owner's policy (BOP): Real estate agents 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.

Cyber liability insurance: Cyber liability insurance helps real estate brokers and agents survive data breaches and cyberattacks by helping with recovery expenses. You may need this policy if you handle sensitive data such as credit card numbers, passwords, or Social Security numbers.

Commercial auto insurance: Commercial auto insurance can cover vehicles your business owns or uses for business purposes. If your vehicle is involved in an accident, this policy can cover your liability for the other person's bodily injuries and property damage. It can also pay to repair your car when it is damaged by theft, weather events, or vandalism.

Illinois workers' compensation insurance: The State of Illinois requires nearly every employer to carry this policy, even those with only one part-time employee. If an employee is injured on the job, workers’ comp can help pay for medical fees and lost wages. While real estate agents and brokers face a lower risk of injury than individuals in the construction and manufacturing industries, injuries do happen. When injuries occur, they are most commonly due to falls, slips, and trips, according to data from the U.S. Bureau of Labor Statistics.

Business insurance costs for real estate agents in Illinois

In Illinois, real estate agent insurance costs vary by policy in terms of how they compare 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 generally bundle general liability and another policy at a significant benefit. In all, real estate professionals in Illinois can expect to spend around $200 per month to secure their small business.

Median Insurance Costs for Illinois Real Estate Agents

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 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 real estate agent insurance quotes today.