Top 7 Small Business Insurance Options in Illinois for 2024

Small business insurance in Illinois protects businesses against various risks and potential financial losses. Tailored to meet the unique needs of small enterprises, this type of insurance can cover aspects such as property damage, liability, employee-related risks, and business operation interruptions.

Given Illinois' diverse economic landscape, from bustling urban centers like Chicago to vast agricultural areas, having the right insurance coverage is crucial for stability and success.

Whether you're a startup tech company, a small retail shop, or a local farm, Illinois offers a range of insurance options to help secure your business's future.

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Minimum Insurance Requirements for Businesses in Illinois

Illinois mandates that business owners maintain specific insurance policies. Every business with employees is required to have workers' compensation insurance. Unemployment and disability insurance are also necessary for certain employees, depending on their work hours and compensation.

If you need to demonstrate that you have certain types of insurance, a Certificate of Insurance (COI) is required. We offer a streamlined process for obtaining a COI online. You can also receive a COI once you have obtained a quote and finalized your policy.

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What Insurance Is Mandatory in Illinois?

In Illinois, all businesses with at least one part-time or full-time employee must have workers' compensation insurance. Additionally, commercial vehicle insurance is required for anyone using vehicles for business, such as transporting patients or delivering goods.

Commercial Auto Insurance

Securing commercial auto insurance is crucial if your company operates, rents, or uses vehicles for work purposes. This coverage isn't just beneficial for business-owned vehicles and it's important if employees drive their personal cars for work duties.

Should an accident occur, this policy can manage costs related to:

• Medical expenses and rehabilitation
• Vehicle repairs
• Replacement needs for other involved parties

For instance, imagine one of your employees rear-ending someone during a delivery or you accidentally colliding with another vehicle after a client meeting. Even scenarios like losing control during a snowstorm and damaging property are covered under this insurance.

In Illinois, every business-owned vehicle must have commercial auto insurance, adhering to these mandates:

• $25,000 for bodily injury per person
• $50,000 for bodily injury per accident
• $20,000 for property damage per accident

Illinois policies automatically include uninsured motorist coverage. Trucking firms might require additional coverage to meet specific regulations.

While not mandatory, it's prudent to cover personal vehicles used for work through hired and non-owned auto insurance (HNOA). This coverage can typically be added to general liability or a business owner’s policy, providing a safety net since personal auto policies often exclude business use.

Workers’ Compensation Insurance in Illinois

In Illinois, all businesses with employees, including those employing part-time staff, must have workers' compensation insurance. Employers must either purchase a policy from an insurance provider or get approval to self-insure.

This insurance helps cover medical expenses for work-related injuries or illnesses. It also offers disability benefits to workers in Illinois who are injured on the job.

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Top 7 Companies for Small Business Insurance 

NEXT

NEXT offers a variety of commercial insurance policies that you can purchase online and start using immediately. Their lineup includes a business owner's policy, which combines general liability and commercial property insurance, along with commercial auto insurance, workers' compensation, professional liability insurance, and tools and equipment insurance, among others.

NEXT, it also provides digital tools for seamless policy management. These tools allow you to instantly share a live certificate of insurance and add additional insured parties at no extra cost. Customers can opt for monthly payments and save up to 25% with discounts.

Founded in 2016 and based in Palo Alto, California, NEXT Business Insurance leverages artificial intelligence and machine learning to streamline the insurance buying process. Its A—(Excellent) financial strength rating from AM Best makes it a standout. However, some competitors might offer more niche coverages, like cyber liability insurance.

With NEXT, you can secure a variety of business insurance coverages online in about ten minutes. If you prefer a personal touch, you can also chat with a U.S.-based insurance advisor.

Opting for NEXT in Illinois brings several benefits, including the quick sharing of a live certificate of insurance, the ability to tailor your business insurance with diverse coverages, and a fully online quote and application process with additional support available when needed.

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Hiscox

Hiscox is an excellent choice for freelancers, recognized as the leading insurance provider for independent contractors among small commercial insurers. 

They offer a flexible business owner’s policy (BOP) that covers various needs, including business interruption, electronic data loss, and professional liability insurance. For freelancers, Hiscox provides standalone professional and general liability policies tailored for short-term projects, with convenient monthly payment plans.

Hiscox holds an A (Excellent) rating from AM Best, indicating robust financial health. Although they have experienced a higher-than-average number of complaints for their size over the past three years, there's a positive trend with complaints decreasing year-over-year, showing enhanced customer satisfaction. Hiscox’s policies, including their BOPs, start at an affordable rate of around $500 annually.

In Illinois, Hiscox offers significant benefits such as customized options for independent contractors, no-fee monthly payments, short-term liability insurance, and a fully online quote and application process, complete with available support.

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Simply Business Insurance

Simply Business makes it easy to compare quotes and coverage from top insurance providers, such as Hiscox, helping you find the best option for your needs. The platform allows you to obtain policy options online in under ten minutes. For additional support or inquiries, licensed agents are readily available by phone.

This service is ideal for both businesses and sole proprietors. It tailors its recommended insurance options to the specific nature of your work, whether landscaping, accounting, or photography.

Although Simply Business doesn’t directly handle claims (managed by your chosen provider), it offers substantial support, including obtaining new copies of your policy documents and contacting your provider if you need help.

Key advantages of using Simply Business in Illinois include a quick quote process, access to licensed agents for assistance, and the ability to select from leading insurance providers.

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Tivly

Tivly simplifies shopping for business insurance by offering a one-stop online platform where you can easily input your criteria and receive a quote tailored to your business needs. With partnerships with over 200 providers, including well-known names like Progressive and The Hartford, Tivly effectively matches you with the best insurance provider to protect your bottom line.

Through Tivly, you can secure various types of business insurance, such as business income insurance and liability coverage, ensuring the protection of your life's work.

The benefits of using Tivly in Illinois include an easy quote process, a broad network of over 200 partner providers, and the assurance of being matched with a provider that meets your specific business insurance needs.

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CoverWallet

Shopping for business insurance can often be complex and time-consuming, but CoverWallet simplifies the process by providing easy access to quotes from multiple insurance providers. You can start by consulting with an insurance advisor or directly obtaining quotes from reputable insurers such as Hiscox and Progressive.

CoverWallet offers a variety of coverage options, including workers' compensation, general liability, and commercial property insurance, allowing you to tailor protection for every aspect of your business.

Once you select your insurance coverage, you can manage your policies using MyCoverWallet, an online dashboard. This platform enables you to issue insurance certificates, file claims, and pay premiums, keeping your policies well-organized and accessible. You can contact an expert at any time for guidance.

CoverWallet also offers comprehensive educational resources tailored to different industries. You can explore recommended coverage based on your specific industry, location, number of employees, and annual revenue, making it easier to understand and select the appropriate insurance for your business.

The benefits of using CoverWallet in Illinois include obtaining multiple quotes, learning about industry-specific insurance recommendations, and accessing various insurance types.

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Progressive Business Insurance

Progressive is renowned as a reliable car insurance provider and is an excellent choice for businesses with a commercial fleet. Trucking companies that operate tractor-trailers and long-haul semi-trucks will particularly benefit from Progressive's comprehensive coverage.

Businesses that have been operational for at least three years can enjoy savings of up to 5% on premiums. You can receive a 15% discount on your commercial auto policy if you pay the entire premium upfront.

Beyond vehicle insurance, Progressive offers a range of other business insurance products, including cyber insurance, business owner policies, professional liability, workers’ compensation, and general liability insurance. The company also provides “any auto coverage,” which ensures vehicles owned and used for business purposes by you or your employees.

The advantages of Progressive in Illinois include flexible coverage options tailored to specific business needs and additional perks like risk management services.

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The Hartford Business Insurance

The Hartford brings extensive expertise in business insurance, dedicating itself to tailoring policies to each client's unique needs, which helps save money.

Serving a broad spectrum of clients, from large corporations and mid-sized businesses to sole proprietors, The Hartford offers an array of policies. These include event insurance, employment practices liability, directors and officers insurance, bonding and surety, flood insurance, coverage for loss of business income, restaurant insurance, workers’ compensation, and technology errors and omissions, among others.

The advantage of choosing The Hartford in Illinois is its over 200 years of experience in the insurance sector. The company provides the convenience of online quote generation, maintains a robust financial rating, and offers a comprehensive selection of commercial insurance products.

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Business Insurance Varieties in Illinois

Small businesses in Illinois may find several recommended insurance options beneficial.

Illinois General Liability Insurance Coverage

In Illinois, while not mandatory, general liability insurance—often called business liability or casualty insurance—is a wise choice for all business owners. This insurance provides broad coverage at a reasonable cost, making it ideal for small businesses. It typically covers:

• Third-party bodily injury: If someone gets injured on your property, this part of your policy will handle their medical bills
• Third-party property damage: Should someone's property get damaged on or near your premises, your insurer will handle repairs or replacements
• Personal and advertising injury: Protects against accusations such as slander, copyright violations, or libel. Your insurer will support legal defenses and cover related costs if sued

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Illinois Commercial Property Insurance

Any business that owns, rents, or leases physical spaces should consider commercial property insurance. It covers physical damage from vandalism, theft, fire, and storms to your premises and its contents, including furniture, inventory, and equipment. Note that most policies don’t cover flood damage, so a separate policy might be necessary for businesses in flood zones.

Illinois Commercial Flood Insurance

For small businesses in Chicago, IL, commercial flood insurance is a wise consideration. Typical commercial property insurance policies won't cover flood damage, and notably, Chicago has many properties at unexpected risk for flooding.

Commercial flood insurance steps in to protect your property from flood water damage. We offer this insurance through the National Flood Insurance Program. Remember, the federal government mandates a 30-day waiting period for new policies, so it's crucial to secure this insurance ahead of any potential flooding.

Your business might need commercial flood insurance if:

• Your location experiences consistent, moderate rainfall, which might block drains and gutters, leading to flooding.
• A warm spring leads to rapid snowmelt, causing nearby rivers and dams to overflow.
• Your business is in a coastal part of the state that was previously under hurricane warnings.

Illinois Business Owners Policy

A Business Owners Policy (BOP) combines essential coverages, commercial property, general liability, and business interruption insurance into a cost-effective package for small businesses. Business interruption insurance is crucial as it covers operational costs during unexpected closures, such as payroll and lease payments, and may even include lost profits up to a certain limit.

Professional Liability Insurance

Also known as errors and omissions insurance, this coverage is essential for professionals like lawyers, architects, and healthcare providers. It protects against claims of negligence, missed deadlines, or mistakes in professional services and covers defense costs and other legal expenses.

Illinois Data Breach Insurance

Cyberattacks are becoming increasingly frequent. If your business holds sensitive customer data, you're at risk for a data breach. Known as cyber insurance, data breach insurance is your financial ally, helping your business tackle a breach and cover costs such as:

• Notifying affected customers
• Providing credit monitoring services
• Settling legal fees or fines

This insurance is crucial if:

• An unauthorized person accesses or steals your customers’ confidential data
• Someone steals your business’ intellectual property or trade secrets
• Your secure network is compromised, leading to the loss of sensitive data

We're here to assist your business in responding quickly to a breach. The quicker the public sees your business as trustworthy and secure, the better.

Employment Practices Liability Insurance

Employment Practices Liability Insurance (EPLI) is crucial for defending against claims of discrimination, wrongful termination, or sexual harassment. It covers legal defenses and settlements.

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Curious About Small Business Insurance Costs in Illinois?

Here's a scoop that might just save you some hassle! Securing commercial insurance in the bustling streets of Chicago or anywhere else in Illinois won't break the bank. Let's dive into the average premiums:

• General liability sits at about $39 monthly
• Workers' comp hovers around $38 monthly
• Professional liability, or E&O, runs a bit higher at $60 monthly

So, what factors influence these costs? It boils down to a few crucial elements:

• Your industry’s inherent risks
• The scale of your business operations
• The number of employees on your payroll
• The scope of your policy limits and deductibles

Navigating these variables can help you find a tailored insurance plan that won't strain your finances!

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Frequently Asked Questions - Small Business Insurance Illinois

How Can I Obtain a Certificate of Insurance for My Business?

Insureon's licensed agents can help you identify insurance policies that meet Illinois' business insurance requirements and safeguard against financial losses. After securing coverage through us, you can access and download your certificate of insurance by logging into your account.

Is My Company at Risk of Being Liable for a Data Security Breach?

Indeed, this is why having cyber insurance is vital. Small businesses, targeted by hackers three times more often than larger enterprises due to their limited defensive resources, need to be especially cautious.

Illinois mandates that businesses notify residents of security breaches, and the related costs can accumulate rapidly. Cyber liability insurance helps mitigate the financial burden by covering notification expenses, legal fees, and fines.

Does the Type of Industry Influence State Insurance Requirements?

Yes, the type of industry can influence state insurance requirements. States may specify certain insurance and bonding needs based on your industry, and professional licensing might also be required. For example, contractors often need commercial general liability insurance or surety bonds, while real estate agents and brokers typically require errors and omissions insurance (E&O).

In Illinois, attorneys without legal malpractice insurance must complete a biennial review of their firm's operations, and cannabis businesses need a $50,000 surety bond per location. Local city and county laws may also apply.

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Bottom Line – Small Business Insurance Illinois

Small business insurance in Illinois is vital for local entrepreneurs, ensuring their operations are protected against various risks. Illinois small businesses can mitigate financial losses and foster a resilient environment for growth and sustainability by choosing the appropriate coverage, from liability to property damage and beyond.

As each business is unique, consulting with insurance companies like NEXT to tailor policies to specific needs is essential. This proactive approach not only complies with legal requirements but also builds a strong foundation for future success in Illinois's dynamic economic landscape.

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