Best Small Business Insurance in Illinois 2023: Outstanding Picks

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Best Small Business Insurance in Illinois

Starting a small business in Illinois can be a rewarding and fulfilling experience, but it’s essential to protect your investment with the right insurance coverage. As you start an LLC in Illinois, it’s crucial to research and choose the best small business insurance that fits your needs. 

With many insurance providers offering a wide range of coverage options, selecting the best small business insurance can take time and effort. But fear not! LLCBase is here to help you navigate this critical aspect of running a successful business. In this guide, we’ll introduce you to the best small business insurance in Illinois for 2023, highlighting their unique offerings, eligibility criteria, financial strength, and customer satisfaction. 

Best Small Business Insurance

What is a Business Insurance

Business insurance refers to a set of insurance policies designed to protect a business and its owners from potential financial losses and liability risks associated with operating a business. These policies cover various aspects of the business, safeguarding it from unforeseen events such as property damage, lawsuits, employee injuries or illnesses, and interruptions in business operations.

The diverse range of business insurance policies in Illinois allows business owners to customize their coverage to suit their industry’s specific needs and potential risks. By investing in the appropriate business insurance policies, owners can focus on growing their business confidently, reassuring that they are protected against any unforeseen challenges that may arise during their entrepreneurial journey.

Small Business Insurance Coverage

If you want to start a business in Illinois and apply for business insurance, remember that it only covers the following:

  • Third-party bodily injury and property damage resulting from your business operations
  • Professional errors and omissions
  • Damage to your business property
  • Employee injuries and illnesses
  • Auto accidents involving your business vehicles
  • Cyberattacks and data breaches
  • Loss of income due to a covered event
  • Claims related to wrongful termination, discrimination, and harassment

On the other hand, small business insurance generally does not cover the following:

  • Intentional acts of damage or harm
  • Damage caused by normal wear and tear
  • Floods and earthquakes (unless specifically added to your policy)
  • Employee dishonesty or criminal activity
  • Losses resulting from business activities not disclosed to the insurance provider

10 Best Small Business Insurance Providers in Illinois

Choosing the right insurance provider is critical for any small business owner who wants to start a business; perhaps you want to start an insurance company in Illinois. Illinois is home to a thriving entrepreneurial environment, making it essential for businesses to have comprehensive insurance coverage. To help you make an informed decision, we have compiled a list of Illinois’s best small business insurance providers.

1. Allianz

Allianz is a global insurance and financial services provider with a strong presence in over 70 countries. They offer various insurance coverages, including general liability, professional liability, commercial property, and workers’ compensation insurance. Allianz is recognized for its extensive coverage options, global expertise, and strong financial rating, making it a reliable choice for small businesses seeking comprehensive insurance solutions.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A+ (Superior)

Pros
  • Wide range of coverage options
  • Strong financial rating
  • Global presence and expertise
Cons
  • Limited online resources for policy management
  • Not specialized in small businesses
Apply to Allianz

2. Allstate

Allstate is a well-known national insurance provider that offers a variety of customizable insurance policies for small businesses with up to 500 employees. Their coverage options include general liability, commercial property, and workers’ compensation insurance. Allstate is known for its personalized service through local agents and online policy management tools, making it a convenient choice for small business owners.

Eligibility Criteria: Must be a small business with up to 500 employees

Complaint Level: Average

A.M. Best Financial Strength Rating: A+ (Superior)

Pros
  • Customizable coverage options
  • Local agents for personalized service
  • Online policy management tools
Cons
  • Limited industry-specific coverages
  • Mixed customer service reviews
Apply to Allstate

3. Clear Blue Insurance

Clear Blue Insurance is a specialty provider focusing on niche and hard-to-place risks. They offer tailored coverage options for small businesses, including general liability, professional liability, and commercial property insurance. With a strong financial rating and a commitment to underwriting unique risks, Clear Blue Insurance is an ideal option for businesses looking for customized insurance solutions.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A- (Excellent)

Pros
  • Specializes in niche and hard-to-place risks
  • Tailored coverage options
  • Strong financial rating
Cons
  • Limited online resources for policy management
  • Not well-known in the market
Apply to Clear Blue Insurance

4. Farmers Insurance

Farmers Insurance is a national insurance provider offering a wide range of coverage options for small businesses with up to 500 employees. Their policies include general liability, commercial property, workers’ compensation insurance, and industry-specific coverages. Farmers Insurance is known for its local agents who provide personalized service and its commitment to meeting the needs of various industries.

Eligibility Criteria: Must be a small business with up to 500 employees

Complaint Level: Average

A.M. Best Financial Strength Rating: A (Excellent)

Pros
  • Wide range of coverage options
  • Local agents for personalized service
  • Industry-specific coverages available
Cons
  • Limited online policy management tools
  • Mixed customer service reviews
Apply to Farmers Insurance

5. Acuity

Acuity is a regional insurance provider offering comprehensive coverage options for small businesses. Their policy offerings include general liability, professional liability, commercial property, and workers’ compensation insurance. Acuity is recognized for its excellent customer service reputation, online policy management tools, and strong financial rating, making it a reliable choice for small business owners.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A+ (Superior)

Pros
  • Comprehensive coverage options
  • Excellent customer service reputation
  • Online policy management tools
Cons
  • Not available in all states
  • Limited industry-specific coverages
Apply to Acuity

6. CNA

CNA is a leading insurance provider offering various coverage options for small businesses, including general liability, professional liability, commercial property, and workers’ compensation insurance. They are known for their strong financial rating and industry-specific coverages, making them a solid choice for businesses seeking comprehensive insurance solutions.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A (Excellent)

Pros
  • Wide range of coverage options
  • Strong financial rating
  • Industry-specific coverages available
Cons
  • Limited online policy management tools
  • Mixed customer service reviews
Apply to CNA

7. Frankenmuth Insurance

Frankenmuth Insurance is a regional provider offering comprehensive coverage options for small businesses, including general liability, professional liability, commercial property, and workers’ compensation insurance. They are known for their excellent customer service reputation and personalized service through local agents, making them a reliable choice for small businesses in the Midwest.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A (Excellent)

Pros
  • Comprehensive coverage options
  • Excellent customer service reputation
  • Local agents for personalized service
Cons
  • Limited availability outside the Midwest
  • Limited online resources for policy management
Apply to Frankenmuth Insurance

8. Travelers

Travelers is a national insurance provider offering various coverage options for small businesses, including general liability, professional liability, commercial property, and workers’ compensation insurance. They are recognized for their strong financial rating and online policy management tools, making them a convenient choice for small business owners seeking comprehensive insurance solutions.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Average

A.M. Best Financial Strength Rating: A++ (Superior)

Pros
  • Wide range of coverage options
  • Strong financial rating
  • Online policy management tools
Cons
  • Mixed customer service reviews
  • Limited industry-specific coverages
Apply to Travelers

9. Chubb

Chubb is a global insurance provider offering comprehensive coverage options for small businesses, including general liability, professional liability, commercial property, and workers’ compensation insurance. They are known for their strong financial rating and global expertise, making them a reliable choice for businesses seeking extensive insurance solutions.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A++ (Superior)

Pros
  • Comprehensive coverage options
  • Strong financial rating
  • Global presence and expertise
Cons
  • Limited online resources for policy management
  • Not specialized in small businesses
Apply to Chubb

10. Westfield Insurance

Westfield Insurance is a regional provider offering comprehensive coverage options for small businesses, including general liability, professional liability, commercial property, and workers’ compensation insurance. They are known for their strong financial rating and personalized service through local agents, making them a reliable choice for small businesses in the Midwest and Northeast.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A (Excellent)

Pros
  • Comprehensive coverage options
  • Strong financial rating
  • Local agents for personalized service
Cons
  • Limited availability outside of the Midwest and Northeast
  • Limited online resources for policy management
Apply to Westfield Insurance

How to Apply for Business Insurance in Illinois

Securing adequate insurance coverage is crucial to safeguarding your Illinois small business against potential risks and liabilities. Whether you’re just starting or growing your enterprise, follow this step-by-step guide to applying for small business insurance in Illinois confidently.

Step 1: Assess Your Insurance Needs

Analyze the specific risks your Illinois business may face, including potential lawsuits, property damage, worker injuries, or cyber threats. Consider the following types of insurance to help you determine which coverage suits your needs:

  • General Liability Insurance
  • Property Insurance
  • Workers’ Compensation Insurance
  • Professional Liability Insurance
  • Cyber Liability Insurance
  • Business Interruption Insurance
  • Commercial Auto Insurance

Step 2: Research Illinois Insurance Requirements

Each state has unique requirements for business insurance. Research Illinois insurance regulations and mandatory coverages, such as workers’ compensation or commercial auto insurance, if applicable.

Step 3: Compare Insurance Providers

Create a list of reputable insurance providers licensed to operate in Illinois. Compare their coverage options, limits, deductibles, and premiums to find the policy that best addresses your risks and fits your budget.

Step 4: Gather Necessary Documents

Before submitting your application, gather any necessary documents, including:

  • Business name and contact information
  • Federal Employer Identification Number (EIN)
  • Description of your business operations
  • Number of employees
  • Estimated annual revenue
  • Property details (if applicable)
  • Vehicle information (if applicable)

Step 5: Contact an Insurance Agent or Broker

Reach out to an insurance agent or broker to discuss your coverage needs and obtain insurance quotes. An agent can help you navigate the application process and provide guidance on obtaining the best protection for your Illinois small business.

Step 6: Submit Your Application

Fill out the application form provided by your chosen insurance provider. Carefully input the required information and attach any requested documentation. Be accurate and thorough in your responses to ensure you receive the appropriate coverage.

Step 7: Review and Sign the Policy

Once approved, thoroughly review your insurance policy to ensure it accurately reflects the coverage you discussed with your agent or broker. Pay attention to any clauses, exclusions, or limits. If satisfied, sign the policy and make the initial premium payment.

FAQs

What types of small business insurance are required by law in Illinois?
In Illinois, employers are required to carry workers’ compensation insurance for their employees. While it isn’t required by law, general liability insurance is highly recommended for small businesses as well.
What is workers’ compensation insurance, and is it required in Illinois?
Workers’ compensation insurance provides coverage for employees who are injured or fall ill while working. In Illinois, employers are required by law to carry workers’ comp insurance.
What does commercial property insurance cover, and is it necessary in Illinois?
Commercial property insurance covers damage to your business’ property, whether it’s from natural disasters, vandalism, or theft. While it’s not required by law in Illinois, it’s strongly recommended if you own property that’s crucial to your business operations.
What is general liability insurance, and is it required in Illinois?
General liability insurance protects your business from liability claims, such as bodily injury or property damage. It’s not required by law in Illinois, but it’s highly recommended.
Are there any specific small business insurance laws in Illinois?
Yes, in addition to requiring workers’ compensation insurance for employees, Illinois has a Commercial General Liability Insurance Act that sets certain standards for general liability insurance policies.
Is cyber liability insurance necessary in Illinois?
Cyber liability insurance can be important if your business collects personal information from clients or customers. While not required by law in Illinois, it’s recommended if you handle sensitive data.
Does Illinois have a state-based health insurance exchange for small businesses?
Yes, Illinois has a Small Business Health Options Program (SHOP) that allows small businesses to offer employee health insurance plans.
Can I purchase business insurance through a state-sponsored program in Illinois?
While Illinois doesn’t have a state-sponsored program for small business insurance, there are independent insurance agents and brokers who can help you find the right coverage for your needs.
What is professional liability insurance, and is it required in Illinois?
Professional liability insurance covers you if you or any of your employees are accused of making professional mistakes or errors. It’s not required by law in Illinois, but it’s highly recommended for professional service providers like doctors, lawyers, and accountants.
Is commercial auto insurance required in Illinois?
If your business involves using vehicles, then Illinois requires that you carry commercial auto insurance. This covers both liability and physical damage.
What type of businesses would benefit from specialized insurance products in Illinois?
Businesses that might benefit from specialized insurance products in Illinois include those in the construction, healthcare, and technology industries, as well as any business that deals with high-risk materials or operations.
Is it worthwhile for small businesses to bundle their insurance policies in Illinois?
Bundling your insurance policies can often lead to cost savings, so it can be a good idea for small businesses in Illinois to investigate this option.
Should small businesses also consider adding umbrella liability insurance to their policies in Illinois?
If your business may face sizeable liability claims, then adding an umbrella insurance policy can provide additional coverage to protect your assets. This option may be especially important in Illinois.
Can independent contractors be covered under a small business insurance policy in Illinois?
Whether or not an independent contractor is covered under a small business insurance policy depends on the details of the policy. It’s best to discuss coverage options with an insurance agent in Illinois.
What is an insurance claim, and what is the process like in Illinois?
An insurance claim is a formal request for compensation after an incident covered by insurance. The process for filing a claim in Illinois varies depending on the type of insurance and the policy’s coverage details.
Can a small business change their insurance policy options mid-term in Illinois?
Options for altering your insurance policies mid-term may vary depending on the policy. Speak with your insurance provider in Illinois about any potential changes you’d like made.
How can small business owners in Illinois determine the best insurance policies and coverage amounts for their business?
The best insurance policies for small businesses vary depending on the size, industry, and risks of the specific business. Speaking with an insurance agent or broker in Illinois can help determine suitable options.
What is the cost for small business insurance in Illinois, and what factors can influence the premiums?
The cost of small business insurance in Illinois can vary greatly depending on the policy’s coverage and limits, industry risks, business size, and other factors.
Are there any tax benefits to purchasing small business insurance in Illinois?
While there are no specific tax breaks for buying small business insurance in Illinois, insurance is a deductible business expense on federal taxes.
Can expired insurance coverage negatively impact a small business in Illinois?
Yes, if your coverage has expired without being renewed, you’d be left with no insurance. This can leave you vulnerable to losses in the event that an incident occurs.
Is it mandatory for an insurance agent or broker to obtain a license in Illinois?
Yes, insurance agents and brokers need to be licensed to work in Illinois. They also may need to maintain additional licenses depending on the type of insurance they handle.
What issues related to discrimination and fair housing do small business owners need to have covered in Illinois?
Small business owners in Illinois should understand and comply with anti-discrimination laws to minimize their liability.
What insurance options do small businesses have in Illinois for protecting their property from a natural disaster?
For Illinois small businesses that face threats from natural disasters, obtaining commercial property insurance can be critical for protecting their assets and earnings potential.
Can a small business in Illinois benefit from purchasing an employment practices liability insurance policy?
Employment practices liability coverage may be appropriate for small businesses in Illinois to help protect you in any case of discrimination or other risks that could arise from employing people.
Are there business interruption insurance policies available in Illinois?
Yes, business interruption coverage may be available as an appendage to general liability policies, helping cover the potential revenue losses on the event of a shutdown caused by disaster or various incidents.
Is it necessary for entrepreneurs in Illinois to have life insurance?
Life insurance is not necessarily required for small business owners in Illinois; however, consider assessing their requirements and necessities for life coverage.
What tax considerations might be relevant if small business owners in Illinois opt for liability law insurance policy?
While insurance premiums are generally 100% tax-deductible for companies in Illinois, you have to evaluate your specific business and situation before signing up for any insurance.
In Illinois, is it required for plumbers to have business insurance?
Illinois plumbing firms are required by law to secure a minimum of $300,000 in liability insurance; trade representatives may also have differing specifications.
Are annual insurance reviews necessary for businesses operating in Illinois?
Yes, it is always wise for small businesses in Illinois to evaluate their insurance policy annually to ensure they have sufficient coverage given they may need an increased amount of insurance due to growth in the company.
What type of insurance do small businesses in Illinois need?
Small businesses in Illinois typically need general liability insurance, workers’ compensation insurance, and professional liability insurance.
Is workers’ compensation insurance required for small businesses in Illinois?
Yes, workers’ compensation insurance is required for small businesses in Illinois with employees.
What is the minimum coverage included in workers’ compensation insurance in Illinois?
The minimum coverage for workers’ compensation insurance in Illinois is $500,000.
Can small businesses in Illinois purchase business interruption insurance?
Yes, small businesses in Illinois can purchase business interruption insurance to protect themselves from financial losses due to unexpected shutdowns caused by disasters or other events.
Is auto insurance required for small businesses with delivery vehicles in Illinois?
Yes, small businesses with delivery vehicles in Illinois are required to purchase commercial auto insurance.
Can small businesses in Illinois purchase cyber liability insurance?
Yes, small businesses in Illinois can purchase cyber liability insurance to protect against data breaches and other cyber-related risks.
What is the cost of small business insurance in Illinois?
The cost of small business insurance in Illinois varies depending on the type and level of coverage required for a business.
Are there any risks small businesses in Illinois face specific to the state?
Illinois small businesses face risks specific to the state, such as harsh winter weather and the threat of flooding in certain areas.
Can one insurer offer all types of insurance needed by a small business in Illinois?
Yes, some insurers do offer all types of insurance needed by a small business in Illinois.
Is Illinois General Liability Insurance more expensive for small businesses than in other states?
The cost of general liability insurance for small businesses in Illinois is comparable to other states.
Is a professional liability policy necessary in Illinois?
Yes, small businesses in Illinois that provide professional services should have a professional liability policy to protect against malpractice claims.
What are the penalties for not having workers’ compensation insurance in Illinois?
Small businesses that fail to provide workers’ compensation insurance in Illinois may face hefty fines and other legal repercussions.
Which natural disasters are common in Illiois that small businesses should consider having insurance for?
Flooding is a common disaster that small businesses in Illinois should consider having insurance for.
Does Illinois offer any specific tax incentives on having small business insurance?
Illinois does not offer any specific tax incentives for small businesses that have insurance.
Can an Illinois small business purchase liability insurance during the time of a lawsuit?
Small businesses can purchase liability insurance at any time, including during the time of a lawsuit, but the existing claim is usually not covered.
Are Illinois businesses adequately covered for wildfires and landslides under commercial property insurance?
Landslides are generally not covered under commercial property insurance in Illinois, but wildfires may be covered depending on the insurer.
Can a small business owner in Illinois qualify for the Affordable Care Act?
Small business owners in Illinois can qualify for the Affordable Care Act, which offers health insurance options for employees.
What protection do Illinois Insurance agents provide small business owners?
Illinois insurance agents provide advice and support on selecting the best types and levels of insurance coverage for small business owners.
Is malpractice insurance required for doctors’ offices in Illinois?
Yes, malpractice insurance is required for doctors’ offices in Illinois.
Can small business owners pool together to get insurance, and how can it help?
Small business owners can pool together to get insurance, which can help them receive lower rates and have more bargaining power.
What insurance documentation is a requirement under Illinois laws?
Illinois laws do not require any specific insurance documentation, but small businesses should always maintain accurate records for their own protection.
Can small businesses make a claim and pay a deductible as per their wish and schedule in Illinois?
No, the claim and payment of a deductible must be made according to the terms of the insurance policy.
Does commercial auto insurance in Illinois cover personal vehicles being used for business purposes?
No, personal vehicles used for business purposes are typically not covered by commercial auto insurance in Illinois.
Can Illinois small businesses cover all other insurance policies under one umbrella?
Yes, some insurers do offer umbrella insurance policies that can cover several types of policies for Illinois small businesses.
Do healthcare-related insurance policies come with terms and conditions which an owner or organization need to get through in Illinois, how does it affect the business?
Yes, healthcare-related insurance policies come with terms and conditions that owners or organizations in Illinois need to understand. Businesses that do not understand those terms may face financial loss.
If a small business owner closes their Illinois business, can they discontinue payment to their insurance?
Yes, if a small business owner in Illinois closes their business, they can discontinue payments to their insurance.

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Conclusion

Selecting the best small business insurance for your Illinois LLC is a crucial step in protecting your investment and ensuring the long-term success of your business. Take the time to research each provider, evaluate their eligibility criteria, complaint level, and financial strength rating, and consider the pros and cons of each option. By doing so, you can make an informed decision and choose the insurance coverage that best meets your needs and protects your business in The Prairie State. Visit LLCBase for more information about starting an LLC in Illinois.

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