Business Insurance Requirements for IT Consultants in Illinois

Finding success as an IT consultant isn’t all about technical know-how – you also need to know how to run a business. Whether you do freelance IT consulting in Chicago or run a small tech firm in Aurora, choosing the right business insurance is an integral first step toward protecting your company.

One of the first policies IT consultants in Illinois purchase is general liability insurance. This policy can help pay for many common mishaps businesses encounter, such as third-party injuries or property damage. Many small businesses are at risk for data breaches; that risk increases significantly when you work in IT. If part of your work is protecting clients from cyber criminals, you may want to purchase cyber liability insurance. If a client's data is compromised, your policy can help pay for the resulting costs, such as notifying customers and paying associated fines.

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 IT consultants in Illinois, or start an application to get your free quotes today.

Find the right insurance policy for your IT consultant business

Factors including revenue, client contracts, and partnerships determine the most common policies for IT consultants in Illinois. The table below illustrates which policies might work best for your business type.

Business type General liability / BOP Professional liability Cyber liability Fidelity bond Workers' comp
Sole proprietor X X X    
Business owner with employees X X X X X
1099 or independent contractor X X X    

 

General liability insurance: General liability insurance is the foundation of an IT consultant’s business protection, with coverage that extends to bodily injury, client property damage, advertising injury, and the cost of legal defense. Most commercial leases include a clause that requires this coverage.

Business owner's policy (BOP): IT consultants often 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.

Professional liability insurance: Many clients require proof of professional liability insurance before entering into contracts for professional services. This policy, also called errors and omissions insurance or IT consultant liability insurance, can help cover legal expenses if you’re sued for unsatisfactory work or a business discrepancy.

Cyber liability insurance: Cyber liability insurance can help IT businesses survive data breaches and cyberattacks by helping pay for recovery expenses for a loss of data experienced by either you or a client. Many professional liability policies already include third-party cyber liability coverage. Check with your agent to see if you already have it, or if you’ll need to purchase a standalone policy.

Fidelity bond: Clients in banking or financial services often require IT consultants to carry a fidelity bond. Also called an employee dishonesty bond, it provides coverage when an employee steals money, equipment, or other assets from one of your clients. That includes theft by electronic funds transfer.

Workers' compensation: If you own an IT consulting business in Illinois and have anyone working for you, even one part-time employee, you are required to purchase workers’ compensation. Sole proprietors can decide whether or not they want to purchase coverage, but it’s something that every small business owner should consider. Workers’ comp can help cover medical expenses and pay partial lost wages resulting from on-the-job injury or occupational illness. While it’s true that IT consultants don’t face the same risks as construction workers, accidents can happen in any line of work.

Business insurance costs for IT consultants in Illinois

According to an analysis of Insureon applications, business insurance costs for IT consultants in Illinois are in line with the national median. At just over $3,000 a year, commercial auto insurance is the most expensive IT consultant insurance policy in Illinois, costing about $200 more than the national median. Errors and omissions insurance comes in second, at just under $2,400 a year. The good news: the median cost in Illinois for general liability insurance is a relatively modest $467 – less than the national median price of $500.

Median Insurance Costs for Illinois IT Consultants

Save time and money with Insureon

Insureon’s industry-leading technology helps IT consultants 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 IT consultant insurance quotes today.