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Which insurance policies are recommended for Illinois businesses?
Small businesses in Illinois often buy the following types of insurance.
General liability insurance
A general liability policy is important for all Illinois businesses. It covers common risks, including customer property damage and injuries. Most commercial leases require this coverage.
BEST FOR
- Customer injuries at your business
- Damaged customer property
- Libel and other advertising injuries
Workers’ compensation insurance
Workers’ comp insurance is required for Illinois businesses that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.
BEST FOR
- Employee medical expenses
- Disability benefits
- Legal fees from employee injuries
Commercial auto insurance
This policy is required for business-owned vehicles in Illinois. It covers injuries and property damage in an accident, along with vehicle theft, vandalism, and weather damage.
BEST FOR
- Accidents involving business vehicles
- Theft of a business vehicle
- Damage to a company vehicle
Business owner’s policy
A BOP bundles commercial property insurance and general liability coverage in one plan. It's often the most cost-effective type of commercial insurance for an Illinois business.
BEST FOR
- Customer bodily injuries
- Damaged customer property
- Damaged business property
Professional liability insurance
This policy, also called errors and omissions insurance (E&O), is crucial for consultants and other professional services. It covers lawsuits over mistakes and oversights.
BEST FOR
- Mistakes that impact a client
- Professional negligence lawsuits
- Late or incomplete work
Errors and omissions insurance
E&O, sometimes called professional liability insurance, is common with professional services in Illinois. It can cover the cost of lawsuits related to your work performance.
BEST FOR
- Missed deadlines
- Accusations of negligence
- Errors and oversights
Cyber insurance
This business insurance policy covers financial losses related to data breaches and cyberattacks. It's important for Illinois businesses that handle credit cards and other sensitive data.
BEST FOR
- Customer notification costs
- Fraud monitoring services
- IT support after a data breach
Commercial umbrella insurance
Umbrella insurance boosts coverage on your general liability insurance, commercial auto insurance, and employer's liability insurance when the underlying policy reaches its limit.
BEST FOR
- Customer lawsuits
- Auto accident lawsuits
- Employee injury lawsuits
Commercial property insurance
This policy covers the value of a business's physical structure and its contents, such as inventory, equipment, and furniture. Bundle it with general liability coverage in a BOP for savings.
BEST FOR
- Fire
- Theft and vandalism
- Weather damage
Looking for different coverage? See more policies.
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Which business insurance policies are required in Illinois?
State laws can affect which business insurance coverage you need. These policies are required everywhere in Illinois, from Chicago to Springfield.
Workers' compensation insurance
Illinois requires every business with employees to carry workers’ compensation insurance, including businesses with part-time employees. Illinois law requires employers to purchase a policy through an insurance company or obtain permission to self-insure.
Workers' comp covers medical bills for work injuries and illnesses. It also provides disability benefits for injured Illinois workers.
Commercial auto insurance
All business-owned vehicles in Illinois must be covered by commercial auto insurance. This policy covers the cost of accidents in work vehicles.
Illinois' requirements [PDF] for auto liability insurance are:
- $25,000 per person bodily injury liability
- $50,000 per accident bodily injury liability
- $20,000 per accident property damage liability
Auto liability policies purchased in Illinois automatically include uninsured motorist coverage as well. Trucking companies may need additional coverage to comply with regulations.
Though it's not required, personal vehicles driven for work purposes should be covered by hired and non-owned auto insurance (HNOA), as personal auto policies usually exclude business use. It can be added to general liability insurance or a business owner's policy.
How much does small business insurance cost in IL?
Commercial insurance can be affordable for small business owners in Chicago and elsewhere in the state. Average premiums in Illinois are:
General liability: $40 per month
Workers' comp: $45 per month
Professional liability/E&O: $70 per month
Factors that influence business insurance costs include:
- Your industry and risks
- Business operations
- Number of employees
- Policy limits and deductibles
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How to get insurance for your Illinois business
View video transcript.
We're on top of your small and medium-sized business insurance needs. We'll help you find policies that protect what you've worked so hard to build. Start here.
Tell us about yourself. Questions? We've got your back. The info you share is secure. We'll double-check it and a pro with experience in your field will be in touch.
Fast? You can compare quotes from leading insurance providers in seconds and get a certificate of insurance the same day.
Always online, always on your side. Helping protect your business.
When you are ready to get insurance for your Illinois business, you can complete Insureon's easy online application to get quotes from top-rated insurance companies.
FAQs about Illinois business insurance
Review answers to frequently asked questions about Illinois insurance.
How do I get a certificate of insurance for my business?
Insureon's licensed agents can help you find policies that fulfill Illinois' business insurance requirements and protect against financial loss. Once you've purchased coverage with us, you can download a certificate of insurance by logging into your account.
Can my company be held liable for a data security breach?
Yes – that's why cyber insurance is so crucial. Hackers are three times more likely to target small businesses, as they often have fewer resources to combat a threat.
Illinois' data breach laws require businesses to report security breaches to affected residents, and the costs can escalate quickly. Cyber liability insurance lessens the financial impact by paying for notification costs, legal fees, and fines.
Does my industry affect state insurance requirements?
Yes, your state may have special requirements for business insurance and bonds for your industry. You may also need a license depending on your type of business.
Contractors often need to carry commercial general liability insurance or surety bonds to perform certain types of work. Having the right business liability insurance and bonds helps you comply with state licensing requirements.
Real estate agents and brokers and other professionals who offer advice or services sometimes need errors and omissions insurance (E&O) to get licensed in their state.
Illinois does require attorneys who don't carry legal malpractice, also known as professional liability or E&O, to complete a four-hour interactive, online assessment of the operations of their firm every two years.
Cannabis businesses in Illinois need to carry a $50,000 surety bond for each location to operate legally.
Note that cities and counties may have their own laws, in addition to state laws.
How can I save money on Illinois business insurance?
As with any purchase, shopping around is one of the best ways to find an affordable option. With Insureon, you can compare quotes from top-rated insurance carriers by filling out a free online application.
Other ways to save include bundling policies for a discount, and choosing less expensive policy options, such as lower limits or a higher deductible. Learn more about how to find cheap business insurance.