General Liability covers a wide range of incidents
Slip-and-fall injuries
Someone trips at your business, breaks their leg and files a lawsuit. Excluding employees.
Property damage
You accidentally damage a client or customer’s property.
Advertising injury
You’re sued for improper image use in your advertising.
Legal fees & defense costs
You need an attorney to defend your business in a lawsuit after a claim.
What is General Liability insurance coverage?
General liability insurance can offer important protections for small businesses in Illinois when common accidents occur, such as:
- Slip-and-fall injuries
- Other injuries related to your business, excluding those involving employees
- Damage to someone else’s property
- Accusations of libel, slander or copyright infringement
This type of insurance is also known as commercial general liability (CGL).
General liability insurance could help pay for related costs in a number of situations related to the accidents listed above. For example:
- A customer slips on a wet floor in a Chicago grocery store and injures their shoulder. General liability coverage can help pay for damages and legal fees if the business is held liable.
- A Naperville electrician’s wiring overheats and causes a fire at a client’s home. General liability insurance can help pay to repair the damage.
Illinois general liability insurance can help cover the resulting expenses when these types of accidents occur. This insurance can also help protect your business if you face accusations of slander or libel.
Is General Liability insurance mandatory in Illinois?
Illinois does not require businesses to carry general liability insurance.
However, certain cities or counties may have their own insurance requirements in place. You may need general liability coverage to operate in your area depending on the type of work you do.
Even though there aren’t any statewide requirements for business liability insurance, Illinois business owners may choose this coverage because it offers several important benefits, including:
Financial protection
Businesses may be better protected when an accident occurs or if they’re accused or libel or slander if they have small business liability insurance. Illinois banks and lenders may also require this type of business insurance.
Work contracts
Clients may ask for proof of coverage before they’ll agree to sign a contract or hire you for a job. You might lose out on potential work opportunities if you don’t have Illinois general liability business insurance.
Lease agreement
You may need to show proof of general liability coverage to sign a commercial property lease. Some Illinois property owners or management companies may refuse to rent to you if you don’t have this type of business insurance.
Licenses and permits
You may need to provide proof of commercial general liability coverage to get a professional license or business permit in certain industries.
For example, general contractors in Chicago must show a certificate of insurance for CGL coverage in order to obtain a contractor’s license.
For more details, see our Illinois general contractor license and insurance requirements guide.
What types of businesses might need General Liability in Illinois?
Most Illinois businesses can benefit from general liability insurance because it can cover a wide range of risks that are common across different industries.
Even if your business has a relatively low risk level, CGL insurance can help provide financial protection if a covered event occurs. Property damage and accidental injuries can happen in almost any business setting, including retail spaces, office environments and clients’ homes,
For example, if a Springfield house cleaner accidentally scratches a client’s hardwood floor while moving the couch to clean underneath, general liability insurance could help pay to repair the damage.
How much does General Liability insurance cost in Illinois?
General liability insurance costs in Illinois are determined according to a number of factors, including:
- Where your business is located
- The type of work you do
- The number of people you employ
- The policy limits you select
- Past insurance claims
NEXT offers affordable general liability insurance for business owners in Illinois. Half of our U.S. customers pay $45 or less per month for this type of coverage.**
Learn more about general liability insurance costs.
How NEXT Insurance helps Illinois businesses
NEXT provides Colorado general liability insurance policies designed for small businesses and self-employed workers.
It only takes about 10 minutes to get a quote, review your coverage options, choose your policies and download a certificate of insurance.
Start an instant quote online today.
Our team of licensed insurance advisors is standing by to assist you if you have any questions along the way.
Other business insurance policies that are important in Illinois
Workers’ compensation insurance can help cover medical expenses and lost wages if an employee gets hurt on the job. All employers in Illinois are required to have workers’ comp coverage.
Learn more about workers’ compensation.
Commercial auto insurance can help pay for medical expenses, property damage and other related costs if you or an employee gets into an accident in a work vehicle.
Illinois requires auto insurance for every vehicle, with minimum coverage limits of $25,000 for injury or death of one person in an accident, $50,000 for more than one person and $20,000 for property damage.1
Learn more about commercial auto.
Commercial property insurance can provide coverage for your business’s physical assets if a covered event occurs, like a fire or a burst water pipe. This insurance could help pay for the costs to repair or replace important assets, such as brick-and-mortar structures, inventory, equipment and furniture.
A business owner’s policy (BOP) combines commercial property insurance and general liability insurance. The premium for a BOP may be less expensive than if you purchase the policies separately.
Learn more about commercial property insurance.
Professional liability insurance can help provide financial protection if a customer or client claims you made a professional mistake that cost them money.
Learn more about professional liability.
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