General liability insurance is required by the state of Illinois for the majority of business owners. The purpose of IL GL coverage is to protect business owners from direct or indirect damages to third parties. Your liability insurance helps pay for losses resulting from the activities of your company or its workers.
Certain insurance coverages are obligatory for business owners in Illinois. Employers are required to carry workers' compensation insurance. In addition, the state mandates that firms provide unemployment and disability insurance for some employees based on how much they work and are compensated.
If you're requested to provide proof that you have specific forms of insurance, you'll need a certificate of insurance (COI). As a policyholder, you can easily and quickly obtain a COI online. You can also receive a certificate of insurance after obtaining a quote and policy.
Commercial liability insurance (also known as business liability insurance and commercial general liability insurance) safeguards your Illinois business against financial loss resulting from claims of injury or damage caused by you or your workers to third parties. Typically, a policy covers:
| Bodily Injury | Physical damage to a non-employee at your business premises and injuries caused by you or staff at a client's residence or place of business |
| Property Damage | You or an employee committed property damage to another individual |
| Personal Injury | Acts such as libel, copyright infringement, slander, invasion of property or privacy, unlawful eviction, and false arrest that cause harm to a person's reputation or rights |
| Advertising Injury | Losses resulting from your advertising |
| Legal Defense and Judgments | Expenses to defend against legitimate and frivolous lawsuits and judgments, up to the coverage limit. Note that this does not often include punitive damages for negligence or intentional misbehavior |
The U.S. Small Business Administration’s Office of Advocacy shared that there were approximately 1.2 million small businesses operating in Illinois in 2021. Employees of these small businesses make up almost half of all private employees living in the state. Based on these numbers, there’s no denying that small businesses play a major role in the state’s economy.
Below are statistics that are relevant to small business owners in Illinois:
Here are frequently asked questions regarding general liability insurance in Illinois:
The cost of general liability insurance for small businesses in Illinois typically ranges from $300 to $5,000. The final cost of coverage will depend on your specific business needs along with other factors, such as your location and years in business. Additional premiums will also cost more.
Your revenue plays a key role in determining the total cost of your general liability insurance policy. The higher your sales and revenue are, the higher your insurance premiums will be.
Get in touch with a licensed commercial insurance agent to discuss your business processes, needs, and risks. This way, you can work together to determine a sufficient amount of coverage.
If you want to save on the total cost of commercial general liability insurance and other types of business insurance, you may opt to get a comprehensive business owner’s policy (BOP).
A BOP typically includes general liability insurance, business income insurance, and commercial property insurance. It provides financial protection from claims and lawsuits, helps replace lost income, and protects your commercial property and equipment. Discuss your options with an insurance agent to determine the most suitable coverage for your business.
General liability insurance in Illinois pays for property damage and injury to customers, guests, and subcontractors. Insurance deductibles and policy limits within coverage are customizable for Illinois business owners.
