Business Insurance in Illinois: What You Need

Starting a new business or running an existing one in Illinois is not a distinct experience like most other states. A typical Illinois business must face, more or less, similar laws related to mandatory insurance. The importance of business insurance cannot be denied. And like most businesses in the US, Illinois business owners face major challenges rom employee injuries, auto accidents, and even business interruption. During the Covid pandemic, Business Interruption insurance came into the limelight with a court case in 2020.So, like most businesses, Illinois businesses, too, need to keep abreast of the developments in insurance markets.

If we look at the labor trends, we see a population of 2.4 million Illinois workers working in 1.2 million small businesses as per 2020 labor statistics data. With such a large workforce, there have been around 100,000 + non-fatal injuries that invite claims of Workers’ Comp Insurance. With thestate of Illinois having mandatory insurance for even a single employee, full or part time, contractual or permanent. This insurance paysfor the employee’s medical care and a percentage of lost wages owed to them while unable to work. Without having a workers’ compensation policy, your organization’s financial well-being could be threatened with the cost of benefits an employee is owed in Illinois.

But more importantly, the state holds 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:

• Consulting
• Contractors
• Massage
• Service
• Retail
• Professional
• Technology

You May Also Like:

• Business Insurance in Georgia (GA)
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In this article, we shall enumerate selected insurance policies available in Illinois for purchase. Our expert agents have curated this list with years of experience in insurance markets, where they have observed claims, defense, litigation, and settlements in many cases:

General Liability Insurance Illinois

General Liability Insurance is the basic, essential insurance policy for any kind of business, large or small. It becomes essential, especially when there exists a legal environment allowing any individual to sue anyone for any reason such as mental trauma for minor injuries. It, therefore, becomes essential to protect against litigation from such third party suits. Clients who take this policy gain credibility when entering into contracts with clients or vendors that also require it. The coverage responds to the following:

• Third party injuries caused by your product or service where negligence is present.
• Damage to property of others caused by your business’s negligence.
• Personal and advertising Injury

General Liability’s limited coverage for Personal and Advertising Injury incidents include defamation of character, invasion of privacy, wrongful detention, and copyright infringement.

Commercial Auto Insurance Illinois

Commercial Auto insurance for business vehicles is mandatory in Illinois. This is a good thing because once you purchase ityou have protection against lawsuits for alledging you negligence in causing an accident that resulted in property damage or injury to others. When found to be liable, the policy would pay the damages owed for medical bills, legal fees, loss of income, pain and suffering and property damage. If you include non-owned or hired auto liability on your business auto, your policy will respond to claims of negligence against your business even when in a vehicle the business doesn’t own. This policy covers the cost of at-fault accidents, damage and theft to owned cars,s for both large and small companies in Illinois. It is best for:

• Liability owed to others for bodily injury and property
• Theft of a business vehicle
• Damage to a company vehicle

You’ll always require commercial auto insurance if your company owns a automobile. Nearly every state demands commercial auto insurance coverage for all vehicles. All vehicles in Illinois are required to havea minimum limits of $25,000 for bodily injury liability per person, $50,000 per accident and a $20,000 limit for property damage liability. Additionally uninsured motorists’ bodily injury coverage is required at $25,000 per person and $50,000 per accident.

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.

Workers Compensation Insurance Illinois

With mandatory Worker’s Comp insurance in Illinois, it makes sense to avoid fines and legal troubles for non-compliance with the law. But the benefits of a workers’ compensation policy outweighed the premium of paying for medical expenses and lost pay for work-related injuries suffered by your employees. Workers’ compensation insurance covers 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

Due to the skyrocketing cost of medical care, if you do not purchase workers’ compensation insurance, your business will be financially responsible for any benefits the employee is owed by statute. Most states impose very high penalties for not carrying appropriate insurance. Illinois is no exception.

Business Owners Policy (BOP) Illinois

As a cost-effective measure, Business Owner’s Policy (BOP) can cover most scenarios related to third-party litigation. It bundles commercial property with general liability insurance to form a barrier in case of any unforeseen (and even absurd) litigations for covered incidents. These policies are only available to small to medium low risk industries. This policy provides coverage for the following:

• Third-party bodily injuries
• Damage to others’ property
• Coverage for the business’s property.
• Loss of business income

If you own your building or rent an office, a business owner’s policy is a good fit. Often, client contracts require your business to show evidence of general liability coverage. A BOP is a wise investment for all types of companies when eligible.

Cyber Insurance Illinois

Nowadays, cyber insurance is a common insurance policy for small firms whose business is dependent on online orders. With so many cases of cyber fraud these days, it makes sense to purchase a cyber policy that covers damages from data breaches and malware attacks, such as:

• 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
• Ransom
• Defense

The effects of a cyber-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 defend itself againstthird-party liability lawsuits resulting if systems were not in place that would have stopped the attack.

Professional Liability Insurance Illinois

Professional Liability Insurance is meant for professionals typically with a an educational background, license, certification, or years of experience specializing in certain field. However, unforeseen situations arise when a client or another suffers a financial loss resulting from your business’s negligence in your work or professional advice. Even if a lawsuit is groundless, defense costs can add up quickly. This policy is best suited for the following:

• Real estate agents
• Architects
• Appraisers
• Mortgage brokers
• Insurance agents
• Consulting firms
• Accountants
• Lawyers
• Engineers

When a client sues your firm for omissions & errors in work, Professional liability insurance provides a defense when facing litigation.

Small Business Insurance Illinois 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 employee
• 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.

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.

FAQs for Illinois Business Insurance