As an Illinois business owner, you need several different forms of business insurance to protect yourself against hazards related to your daily operations, business property, and employees. Without it, you may have to cover expensive lawsuits and recovery costs yourself.
According the US Bureau of Labor and Statistics, in 2020 the private sector in Illinois had 106,900 non-fatal employee injuries. An employee's unforeseeable absence from their job and the medical care and lost wages owed them, could threaten your organization's financial well-being and jeopardize the flow of operations.
Illinois requires businesses with just one part-time employee to carry workers’ compensation insurance with few exceptions. The state requires companies to honor the insurance obligations and hold corporate officers personally liable for fines and penalties if the company does not pay.
From technology to contracting businesses in Illinois, insurance can be beneficial for many different industries, including:
Commercial Business Insurance Offered in Illinois
Insurance helps a business with liability from incidents occurring in the normal course of business activities. Without the correct insurance, you will have to pay out of pocket for claims, defense, and settlements, which can get expensive fast. As a result, it is recommended to have the following insurance policies for businesses in Illinois:
General Liability Insurance
A general liability policy is essential for all Illinois businesses. It enables your business to avoid the high cost of defending lawsuits and helps your business qualify for business-related contracts. This policy is best for:
- Customer injuries at your location or from your product or service
- Damage to property of other
- Personal and advertising injury
This business liability protection covers legal costs incurred by a client with bodily injury and property damage that occurred at your business or by you while performing services or from a product sold. General Liability typically includes limited coverage for Personal and Advertising Injury incidents, such as defamation of character, invasion of privacy, wrongful detention, and copyright infringement.
Professional Liability Insurance
Professional liability insurance, also called errors and omissions insurance, covers the costs of litigation related to professional mistakes or omissions that cause a financial loss to your customers. This policy is best suited for the following:
- Real estate agents
- Consulting firms
This insurance coverage originated to fulfill the specialized needs of those whose livelihoods depend on their expertise. Even with professional service providers, mistakes happen. Regrettably, mistakes could cost clients significant time and money. Professional liability insurance provides a defense if your company is sued for professional negligence.
Cyber insurance protects small firms from a data breach or malware attack. It's crucial for companies handling sensitive private information on a network that can be accessed from the internet. In Illinois this insurance can include coverage for:
- Customer data breach notification costs
- Client credit fraud monitoring services
- IT support and recovery after a cyberattack
- Damage to hardware
- Loss of income resulting from an attack
The effects of an attack are not just an inconvenience, it may result in a catastrophic loss that a business cannot overcome without the proper insurance. Cyber insurance helps your company recover the monetary losses and the third-party liability resulting if systems were not in place that would have stopped the attack.
Business Owner’s Policy (BOP)
Commercial property insurance and general liability coverage are often bundled into one insurance policy, referred to as a business owner's policy (BOP). This policy is often the most cost-effective type of commercial insurance for an employer. This policy provides coverage for the following:
- Third-party bodily injuries
- Damage to others’ property
- Coverage for the business’s property.
If you own your building or rent an office, a business owner's policy may be a good fit. Often, client contracts require your business to show evidence of general liability coverage. Aa BOP is a wise investment for all types of companies.
Workers’ Compensation Insurance
A workers' comp insurance policy covers medical expenses and lost salaries for work-related injuries suffered by your employees. Workers' compensation insurance must cover all workers in Illinois, with minor exceptions. It provides the statutory benefits that the employer would have to pay out of pocket if they don’t have this policy. This policy is best for:
- Employee medical expenses
- Disability benefits
- Defense for employee lawsuits alleging gross negligence
Workers' compensation insurance pays for medical expenses stemming from workplace injuries and illnesses, which can escalate rapidly due to the skyrocketing cost of medical care. If you do not purchase workers' compensation insurance, your business will be financially responsible for any damages or losses workers cause. Most states impose very high penalties for not carrying appropriate insurance.
Commercial Auto Insurance
Commercial auto and truck insurance protects against medical bills, legal fees, and property damage in case of an accident on a business vehicle. This policy covers the cost of accidents, damage to cars, and theft of vehicles for both large and small companies in Illinois. It is best for:
- Accidents involving business vehicles
- Theft of a business vehicle
- Damage to a company vehicle
You'll always require commercial auto insurance if your company operates a car. Nearly every state demands commercial auto insurance coverage for business-owned vehicles.
New Hampshire and Virginia are the only places where auto insurance is not legally required. Nevertheless, drivers of both states must always be responsible for the injury they cause.
Illinois Small Business Insurance Requirements
The factors contributing to the insurance limits and coverage that any small business should meet in Illinois include the following:
- The industry
- The number of people you employ
- Risks your business regularly encounters
Laws passed by your state can affect which business insurance you require. Although, these laws are necessary throughout Illinois, from Northwest Chicago to Springfield.
Workers' Compensation Insurance
Because Illinois requires each business employee to carry workers’ compensation insurance, including employers of part-time workers, any company with workers must do so in its name or obtain a policy through a provider or seek authorization to self-insure.
Workers' compensation pays for medical bills and lost wages for employees injured in the workplace. It also gives disability benefits.
Commercial Auto Insurance
Commercial auto insurance should be purchased for business-owned vehicles. In Illinois, all vehicles are required to have a minimum of $25,000 for bodily injury per person and $50,000 per accident for insurance. Additionally, the state requires a $20,000 limit for property damage liability. A business auto policy provides these limits and additional coverages and limits to deal with the ramification of auto accidents.
Cost of Business Insurance in Illinois
Illinois-based self-employed workers pay around $47 monthly for their general liability insurance. But premium costs will vary greatly based on these factors:
Your industry: Certain industries are more likely to have claims. If your business is involved in a high-risk industry.
Your coverage limits: The insurance limits purchased and on what line of insurance has a direct effect on cost.
Your company’s annual revenue: The more revenue and payroll a company has translates to more exposures to loss when it comes to general liability coverage.
Business property insured: The more assets a business owns, the more it will pay for business property insurance.
Location: Rates for auto insurance vary by location. A busier, more populated area with traffic will have more auto accidents than a rural area.
Get a Quote for Illinois Business Insurance
If you need a quote for your Illinois business, please visit us at InsuranceAdvisor.com. Choose your state, then choose from General Liability, Commercial Property, Business Auto, and Workers’ Compensation insurance to answer the application questions. Once we receive your request, we will provide you with a quote as quickly as possible.
Why Choose Insurance Advisor for Commercial Insurance in Illinois?
We are licensed to provide insurance in Illinois and can provide quotes with different insurance carriers. You can request quotes for your business from the comfort of your home, office, or anywhere by visiting us at InsuranceAdvisor.com. Once you create an account, your business information is stored, and you can come back at any time to request quotes for other lines of insurance, get a certificate of insurance, and update your information.
Frequently Asked Questions (FAQ) about Illinois
1. How much is business insurance in Illinois?
Business liability and property insurance policies are reasonably priced for Illinois small companies. Individual factors that may influence your prices include:
- Type of business and its risks
- Business operations and revenue
- Number of employees
- Types of insurance purchased
- Coverage options, such as policy limits
Illinois-based independent businesses and self-employed workers pay around $47 monthly for their general liability insurance.
2. Where can I get inexpensive business insurance in Illinois?
The old saying, “You get what you pay for,” is very accurate with business insurance. If you want more incidents to be covered, you will pay more for insurance. The cheapest insurance is never the best insurance. Get more than one quote from the same or different agents so you can see how one insurance company’s rates compare to another’s. Always read the exclusions in the policy. This is where you find what is NOT covered. Get an affordable option with the most common mishaps likely to happen to your business insured and not listed under exclusions.
3. What types of business insurance are required for businesses in Illinois?
Businesses in Illinois regularly buy multiple types of insurance plans in bundles. Common types of coverage include:
- General liability insurance - To ensure you're aware of any dangers that might arise, it's crucial to defend your business so that when accidents happen, and someone gets hurt or property gets damaged, the coverage is there to assist.
- Professional liability coverage - Also known as E&O insurance, professional liability protects your company from paying for losses and legal fees if somebody accuses you of professional mistakes, omissions, or failure to deliver.
- Workers’ compensation coverage - Workers' compensation coverage protects employers when workers get injured on the job. This coverage pays for health care expenses and lost earnings for the injured worker.
- Commercial auto insurance – If your business owns autos you need this policy to meet statutory coverage requirements as well as covering physical damage on the company vehicles.
4. Which insurance companies are best in Illinois?
An Ohio-licensed commercial insurance agent will determine the best insurance company for your business. Insurance companies often specialize in specific business industries. Your independent insurance agent knows which carriers fit your company's needs. Visit us at InsuranceAdvisor.com to request a quote.
5. How to find out if a business has liability insurance in Illinois?
Schedule an appointment with your vendor to request a copy of their public liability certificate, which will provide the policy number with information and documentation related to this insurance. Call the insurance provider and request confirmation of the insurance's validity by calling the reference number given on the certificate.
6. What is the cost of essential business liability insurance in Illinois?
In Illinois, small businesses and self-employed people usually pay around $47 for their business insurance package.