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As a business owner in Illinois, you should look into different types of business insurance to protect your workers, business property, and daily operations from risks. This is because you might have to pay for claims and other costs on your own without coverage. Read on to learn about the requirements for your business insurance in Illinois.

Small Business Insurance Coverage in Illinois

Sometimes it can be hard and risky to run a limited liability company in Illinois. In Illinois, small business owners need to be ready for anything that could go wrong, from natural disasters to cyber risks. Therefore, getting the right business insurance is one way to keep your company safe. Also, having small business insurance can help protect your company from losing money, lawsuits, and other unplanned events. In Illinois, you can buy small business insurance in a variety of packages. To cover a wide range of risks that your company might face, such as:

  • Claims for personal injuries
  • Damage to property
  • Claims of making mistakes at work
  • Employee injuries on the job
  • Auto crashes related to work

Small Business Insurance Coverage in Illinois: Cost

Finding out the answer to “How much does Illinois business insurance cost?” is about as easy as figuring out the price of a house. Both have a lot of different things to think about and it will depend on the person. So, the amount of money you pay for Illinois business insurance will depend on how much coverage you need. These are some of the things that will affect how much your monthly business insurance costs:

  • What kind of work do you do?
  • Which policies do you choose?
  • Number of employees
  • How big your business is

This makes it hard to give a solid price estimate. But it also means you don’t have to worry about getting insurance that doesn’t meet your needs. You can pick the price that works best for you because each one is made to fit your business.

Types of Small Business Insurance Coverage in Illinois

When you start a business in Illinois, you need to know about different types of insurance to choose the right one for your needs. This means if an insurance company does business in Illinois, they are required to follow certain rules. The Illinois Department of Insurance controls insurance rates. This is to make sure that the policy language is correct and punishes companies that break the state’s insurance rules. Here is the type of small business insurance in Illinois that you can try out:

#1. Protect Your Business (GL) 

General liability insurance is something you need when you get Illinois small business insurance, no matter how many people come to your store every day or how few people come once in a while. With this added to your insurance, it can cover the costs of medical bills for anyone hurt at your business. In the event that someone gets hurt on your land and either breaks a bone or gets hurt more seriously, you can rest easy knowing that your general liability coverage will pay for their medical bills. Also, if a customer’s things get damaged while at your business, general responsibility will be paid to fix or replace them.

#2. Get Your Property Insured (BPP)

If you run a business in Illinois, you probably take pride in the things that belong to your business. But you might need help keeping it in good shape, especially if someone damages the property or a fire destroys the building and its belongings. You’ll be glad you have an Illinois small business insurance contract with BPP when things like this happen. This coverage will pay for repairs and replacements if they are needed. If your business property gets badly ruined, you might not have to take out a loan or even file for bankruptcy.

#3. Protection for Employees (WC)

As one of the 248,689 small businesses in Illinois that employ people, you should make sure that your workers’ compensation insurance covers your business. This is so that you can pay for your workers’ medical care if they get hurt or sick while working for your business. With this part of your Illinois small business insurance, you can even pay your workers for the wages they miss while they’re sick and can’t work.

#4. Umbrella/Excess Liability

General liability can be helpful, but it may not be enough to cover all the costs of every accident that happens at your business and hurts someone. Extra liability is an important part of your Illinois small business insurance coverage that will help you if an accident hurts more than one person. This only raises the limits of your general liability insurance.

#5. Cyber Crime Liability

Even though no business is safe from cybercrime, some are smart enough to include cybercrime risk in their home insurance. Therefore, add online crime coverage to your Illinois small business insurance policy right now to protect your business from the damage that can happen because of it.

#6. Insurance for Professionals’ Mistakes

Professional liability insurance, which is also called error and omissions (E&O) insurance, makes sure that your business is protected against charges of carelessness, fraud, or failure to provide professional services. For Illinois companies that offer professional services like consultants, lawyers, accountants, and IT experts, this kind of insurance is very important. This type of coverage is available to most professional corporations in Illinois.

Illinois Business Insurance Requirements

Depending on the type of business, where it is located, and its size, Illinois may have different business insurance rules and requirements for small businesses. In the state of Illinois, business owners are required to have certain types of insurance coverage, regardless of whether they are full-time or part-time. There must be workers’ compensation insurance for every business with staff.

Based on how much they work and get paid, the state also requires businesses to have unemployment and disability insurance for some workers. Commercial car insurance is also needed if the business has vehicles that are registered to the business. This type of insurance covers damage to property, injuries to people, and personal injury protection. 

However, sole proprietors, business partners, corporate officers, and members of an LLC are the only ones who can choose to be exempt. However, companies in the construction business or other “extra hazardous” industries usually cannot take advantage of this choice. In essence, a certificate of insurance (COI) is what you’ll need to show that you have certain types of insurance.

Illinois Business Insurance Requirements: Penalties

Hiring businesses that don’t have workers’ compensation insurance faces harsh penalties. With a base fine of $10,000 and fines of up to $500 for each day that a company doesn’t have workers’ compensation insurance, the Illinois Workers Compensation Commission has collected over $7 million in fines from companies that don’t have it since 2006. Individual corporate officers may be held responsible if the company does not or cannot pay this fine. 

Also,  if it comes out that these officers knew they needed insurance but did not get it, they are committing a Class 4 crime. Furthermore, the commission can order a business to stop working if it has been discovered that it purposely failed to provide workers’ compensation insurance.

Thus, employers who don’t have workers’ compensation insurance can be sued in civil court if their workers get hurt on the job. In civil court, the benefits are endless, unlike workers’ compensation settlements.

Small Business Insurance Coverage in Illinois: How To Obtain

The requirements for acquiring business insurance in Illinois is easy and only takes four steps:

#1. Think About the Risk

You should think about the risks, natural events, and lawsuits your business might face. That’s what you need to do to get the right protection.

#2. Request a Quotation

It is hard to compare quotes because the plans will cover different things and cost different amounts. It’s like comparing apples and oranges. We suggest that you keep things easy and get two quotes from companies you know and trust.

#3. Customize Your Coverage 

You can make changes to your coverage with the insurance company you choose based on the needs of your business. In order to make sure you have the protection you need, this could mean choosing different coverage limits, adding endorsements, or picking out extra coverage choices.

#4. Review and Buy

Carefully read the policy’s terms and conditions to ensure that the coverage meets your required standards. You should not think about how much the insurance costs first, because what’s the point if you don’t have the right coverage?

#5. Get Your Facts Together

You will need information about your business place, such as the square footage, leases, and construction. When it comes to cars, you’ll need the mileage, title, and registration information, as well as the names and copies of the driver’s licenses of the workers who will be driving them. The insurance company will also need the names and social security numbers of all owners and workers. Bank records and contact information for your CPA and/or lawyer can be asked for.

Small Business Insurance Coverage in Illinois: Providers

These companies have all the requirements to offer the best small business insurance for your Illinois company. This will aid in the security and coverage of your company.

#1. Next Insurance

Next Insurance is one of the best insurance companies in Illinois, and they offer a wide range of small business insurance options, such as property, workers’ compensation, professional liability, general liability, and commercial auto coverage. This is a great choice for entrepreneurs who want full security because they put a lot of emphasis on customer service and know a lot about the risks that small businesses in Illinois face.

#2. Chubb

Chubb is an Illinois-based insurance company that focuses on small business coverage. They offer custom insurance plans to meet the specific needs of businesses in Illinois. Chubb is a great choice for business owners in Illinois who want local knowledge and customized coverage options. They focus on personal service and want to understand the unique problems small businesses face in the state. Also,  they have extra spending and accounts receivable coverage in their business owner’s insurance, which isn’t always included in BOPs.

#3. Thimble

Thimble is known across the country for providing excellent small-business insurance. They provide a variety of coverage choices for Illinois businesses, such as general liability, property, workers’ compensation, professional liability, and commercial auto insurance. Their committed team of insurance experts can help you make a plan that will protect your business and reduce any risks that might happen. If you need protection for a single job or event to meet your contractual obligations, the best thing to do is buy temporary insurance.

#4. Travelers

This is a big American insurance company that helps people and businesses with a lot of different kinds of insurance. Travelers, which was founded in 1853 and has its main office in New York City, is one of the biggest and oldest insurance companies in the US. It has a strong financial base and a long history of offering reliable and complete insurance solutions.

#5. Progressive

Progressive is a well-known and forward-thinking American insurance company that helps people, families, and businesses with a wide range of insurance needs. This insurance is well-known for its car insurance choices, which include comprehensive and collision coverage, as well as extras like towing and rental reimbursement. The company also sells other types of personal insurance, like insurance for homeowners, renters, bikes, boats, and RVs.

Do I need business insurance if I am the only employee?

You will need some form of insurance to protect you and your work materials

How much is general liability insurance in Illinois?

A typical small business in Illinois can expect to pay anywhere between $300 and $5,000 annually for their general liability policy.

What is commercial insurance?

Commercial insurance refers to insurance coverage intended for businesses instead of individuals

What is the mandatory minimum liability coverage in Illinois?

It is $25,000 for the injury or death of one person in a crash. $50,000 for the injury or death of more than one person in a crash. $20,000 for damage to the property of another person.


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