Which insurance plans are best for small businesses in Illinois?
Illinois law says that every business with one or more full-time or part-time workers must have workers’ compensation insurance. People who drive for work must have commercial vehicle insurance.
Small businesses in Illinois often buy the following types of insurance:
Illinois General Liability Insurance Coverage
Although general liability insurance (commercial liability or casualty insurance) is not required in Illinois, we strongly advise all business owners to obtain it. Because it covers so much for so little money, commercial general liability insurance is excellent for small business owners. Typically, commercial liability insurance covers the following expenses:
General liability insurance typically covers:
- Bodily injury
- Medical expenses
- Defective product claims
- Personal and advertising injury
- Third-party damage
- And more
Every business in Illinois needs to have general liability insurance. It covers common risks such as damage or injury to a customer’s belongings. Business leases typically require this policy.
The next topic we need to discuss is the Illinois general liability insurance requirement. While there isn’t a single rule everyone must follow, some jobs require business insurance. Many types of businesses could helpfull from insurance, even if it is not legally required.
As previously mentioned, companies that are not legally required to have Illinois general liability insurance may find it beneficial. This type of insurance can help business owners pay for losses and lawsuits. It can also help you:
Build trust with potential customers:
Rent a storefront or storage area. In a place where people want to store or rent a lot of shop space, having business insurance might help you get the job. Landlords might feel better about renting to you if you show them proof that you have insurance.
Get potential customers to trust you. It’s up to the customer to decide which business to work with, and a Certificate of Insurance (COI) might help your case. People are more likely to trust a business before the job starts if they have a favorable customer history and can show proof of insurance.
Build trust with potential customers. Customers look at many things when deciding which company to work with, and a Certificate of Insurance (COI) could help your case. A good customer reputation and proof of insurance can help people trust a business before the job starts.
Bring in workers. People want to work for businesses that care about their employees and are stable. Illinois general liability insurance could help your business weather a case, leading to more people wanting to work for you.
Separate yourself from the others (or con artists). Sadly, there are dishonest companies in many fields ready to scam customers. Getting business insurance could indicate that you don’t like doing business in shady ways.
Illinois workers compensation insurance
Worker’s compensation insurance is mandatory for Illinois firms with employees. It also saves sole proprietors money on work injuries that their health insurance may not cover.
BEST FOR EMPLOYEES’ medical bills:
Assistance for the disabled
Legal fees from worker injuries
Until now, we’ve discussed insurance plans that must follow the law.
That changes with Illinois worker’s compensation insurance. Whether you have full-time or part-time staff, you’ll need workers’ compensation insurance.
If your employee gets hurt or illness on the job in Illinois, worker’s compensation insurance can help pay for their medical bills & lost wages. In Illinois, workers receive benefits regardless of fault or how much their work caused the injury.
Commercial auto insurance for Illinois
Businesses in Illinois require this policy for their cars. Commercial auto insurance in Illinois covers accidents, property damage caused by accidents, theft, vandalism, and weather damage.
Commercial auto insurance is best for:
- Accidents involving company cars
- Taking someone else’s business car
- Damage to a business vehicle
In Illinois, all motorcars owned by businesses must have private auto insurance. This insurance covers work vehicle damage that occurs on the job.
In Illinois, the following rules apply to commercial car insurance:
- Each person is charged $25,000 for any accidents that happen.
- $50,000 for each injury, plus money for injuries.
- $20,000 for property damage per accident
When you purchase a car liability policy in Illinois, it automatically includes coverage for uninsured motorists. To follow the rules, trucking companies may need more coverage.
Even if it’s unnecessary, personal cars used for work should carry hired and non-owned auto insurance (HNOA). This is because personal auto policies usually don’t cover business use. Anyone with general liability insurance can add this to their contract.
Business owner’s policy
A BOP (Business owner’s policy) combines general liability and business property insurance into a single plan. Business owner’s policy
is often the most affordable business insurance for a company in Illinois.
Business owner’s policy in Illinois best for:
- Customer bodily injuries
- Customer property damage
- Business property damage
Professional Liability Insurance in Illinois
Professional Liability Insurance what is also say errors and omissions insurance (E&O) is essential for experts and other professionals. It includes claims over mistakes and missed details.
Professional liability insurance is best for:
- Errors that impact a client are
- Lawsuits for professional negligence
- Tasks that arrive late or remain incomplete
Professional liability insurance is the next type of coverage you should think about. This policy usually includes claims of negligence, legal defense costs, libel or slander, copyright infringement, and more.
In Illinois, we recommend professional liability insurance for various jobs, including;
- Event planners
- Accountants
- Bookkeepers
- Management consultants
- Project managers
- Graphic designers
- Life coaches
- Photographers
- Real estate agents
- And more
Illinois has no set rules about what kind of professional liability insurance you need. Most of the time, the state makes insurance rules for certain jobs. On the other hand, professional liability insurance is helpful to many business owners in the same way that general liability insurance is.
In a carelessness claim, you don’t have to do anything wrong to find yourself in trouble. You may have to pay legal fees without damages. This is because you had to try to show your innocence.
As a result of the case, professional liability insurance might help pay the lawyers’ fees.
Errors and omissions insurance for Illinois
Professional liability insurance in Illinois often has E&O insurance. It can cover lawsuits related to your job performance.
Errors and omissions insurance is recommended for:
- Accusations of negligence
- Missed deadlines
- Errors and oversights
Cyber insurance in Illinois
Business data breach insurance covers financial losses caused by hacks and data breaches. It’s important for Illinois companies that deal with credit cards and other private information.
Cyber insurance is HIGHEST FOR:
- Fraud monitoring services
- Customer notification costs
- After a data breach, IT support
Commercial umbrella insurance
Umbrella insurance provides additional protection to your general liability insurance, commercial car insurance, and employer’s liability insurance once the limit on your primary policy has been reached.
Commercial umbrella insurance is best for:
- Auto accident lawsuits
- Customer lawsuits
- Employee injury lawsuits
Commercial property insurance
This strategy protects the value of a company’s building and belongings, like furniture, inventory, and tools. You can save money by putting it together with general liability coverage in a BOP.
Commercial property insurance is best for:
Fire, theft, and damage
Weather-related damage
Other types of business insurance in Illinois
In addition to the three primary types of business insurance in Illinois, consider the following options:
- Insurance for a home-based business: Are you going to run your business from your house? You might need safety for your home-based business. Most home insurance policies don’t cover businesses that are run out of the house; general liability insurance might not cover that room.
- Surety bonds: Certain jobs, like roofing workers, require surety bonds, which are not the same as insurance. An agreement exists between you, your clients, and the bond-issuing company to cover damages or unfinished work.
- Insurance for floods: About 15% of Illinois’s land area can flood, so you should consider getting extra insurance for your office.
- Employment Practices Liability Insurance: EPLI provides coverage in the event of accusations of discrimination, wrongful termination, or sexual harassment. This insurance will protect you in court if someone makes a claim and cover any settlements or legal fees.
In Illinois, the following jobs typically fall under coverage:
- Food trucks
- Real estate agents
- Restaurants
- Dry cleaners
- Personal trainers
- Lawn care businesses
- Accountants
- Contractors
- Consultants
- Cleaning services
- Manufacturers
How do I get business insurance in Illinois ?
There is a lot of business insurance information available in a short period of time. To recap what we’ve discussed so far:
Illinois general liability insurance covers injuries, property damage, and more. Some jobs, like freelancers, are required by law in the state to have insurance, and other types of businesses should also get it.
Professional liability insurance is necessary for Illinois employees who provide advice or professional services, such as teaching, photography, or real estate brokerage. It’s not always required, but it can be a financial lifesaver if an unhappy client accuses you of negligence.
It’s not usually needed, but it might help if an unhappy client says you were careless.
In Illinois, every business with staff, even if it’s just one person, is legally required to have workers’ compensation insurance. This includes both full-time and part-time workers. It’s a vital protection for your employees and your business.
In most cases, Illinois business insurance could help pay for claims or damages caused by a business. This means that a small monthly payment could potentially save you from a bill that could bankrupt your business. Moreover, having business insurance can also serve as a testament to your responsibility and reliability for potential customers, lenders, and landlords, paving the way for a more secure and promising business future.
That’s why we’re writing this guide: to help you understand Illinois business insurance better so you can get started. However, as we already said, insurance rules can be complicated.
Finding the best tips for coverage that’s right for your business right now
Talk to business owners in your area to determine their rules. It’s best to find people who work in your field.
The Directory of Associations can help you find groups interested in your field. Connecting with groups can help you find needs, tools, and help.
Get quotes from different insurance companies to find the right policy and price.
Discover how to set up your business and get a license. Numerous forms and regulations outline the necessity of insurance in Illinois.
Imagine how your business will grow next year and how your insurance needs will change.
You can visit the Department of Public Health in Illinois for information on license and insurance requirements in fields such as asbestos removal, healthcare, plumbing, and more.
If you’re using Simply Business to look for insurance, you can talk to one of our insurance experts about anything.
In the Illinois Department of Commerce’s “Starting Your Business in Illinois Handbook,” you can learn about every step of starting a business.
If you need help answering a question about Illinois, talk to lawyers and accountants in the state.
If your business does multiple things, know what insurance each job needs and how to get it.
To find out what licenses are required for hairdressing, roofing, and home inspections, visit the Illinois Department of Financial and Professional Regulation. Each job page features a “Laws and Rules” section. In the linked documents, it’s beneficial to look for the word “insurance.”
There is an Illinois Small Business Development Center near you that can help you with your business.
You can download your Certificate of Insurance (COI) once you have insurance. You may need the COI to obtain a license, rent office space, and do other things. This shows that you’re protected.
How Much Does Illinois Business Insurance Cost Factors?
Many companies are trying to cut costs and save money. In Illinois, general liability insurance for a small business can start as low as $29 monthly for coverage of up to $1 million.
However, other factors also influence the cost of business insurance, including:
- Regardless of whether your business is high-risk,
- Where does your business stand?
- How long have you been in business?
- Regardless of whether you’ve previously filed third-party claims,
- The business you pick for insurance
- How much do you pay for deductibles and insurance limits?
- The number of people that work for you is
Illinois insurance agents will consider these factors and more when determining the cost of business insurance for your small or medium-sized business.
The cost of commercial insurance can be low for small business owners in Chicago and across the state. In Illinois, the average rates are:
- Workers’ pay is $38 per month.
- $39 a month for general liability claims
- E&O and professional liability: $60 a month
Conclusion
In Illinois, having small business insurance, including Illinois business insurance and professional liability insurance, is a vital part of running a successful business. Every type of coverage is essential for keeping your business safe from financial risks and fines.
When you learn about the different kinds of insurance coverage & work with a reputable insurance company, you can ensure your business is well protected. Don’t leave your business’s future up to chance. Instead, buy the proper insurance to protect your success.
Contact us today to learn more about the different types of small business insurance Illinois. You can also find the right insurance company for your Illinois business. Our skilled insurance agents are here to help you understand the insurance world. It will give you peace of mind to focus on what you do best when running your business.
Article sources
U.S. Small Business Association