NEXT tops our analysis of Illinois business insurance providers because of its strong customer service and comprehensive coverage. The Hartford and Simply Business are also reliable options for small business owners across the state.
Updated: August 19, 2025
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Key Takeaways
Small business owners in Illinois can get the best business insurance from NEXT, The Hartford and Simply Business.
The best business insurance in Illinois depends on your industry risks, number of employees and preferred coverage limits.
To find the best coverage, assess your risks, compare multiple quotes, research provider service quality and maximize available discounts.
Best Business Insurance Companies in Illinois
| NEXT | 4.63 | 5 | 1 | 2 |
| The Hartford | 4.63 | 1 | 2 | 3 |
| Simply Business | 4.50 | 4 | 5 | 1 |
| Nationwide | 4.48 | 8 | 2 | 4 |
| Coverdash | 4.42 | 6 | 6 | 2 |
| biBERK | 4.40 | 9 | 2 | 5 |
| Progressive Commercial | 4.33 | 3 | 7 | 5 |
| Thimble | 4.33 | 2 | 8 | 5 |
| Hiscox | 4.28 | 7 | 4 | 6 |
| Chubb | 4.27 | 10 | 3 | 4 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Best by Coverage Type
The Hartford leads Illinois businesses with top-rated general liability coverage and business owner's policies (BOP). NEXT provides the best professional liability insurance, while both companies offer excellent workers' compensation coverage.
| Business Owners Policy | The Hartford | 4.65 |
| General Liability | The Hartford | 4.66 |
| Professional Liability (E&O) | NEXT | 4.70 |
| Workers Compensation | NEXT | 4.61 |
| Workers Compensation | The Hartford | 4.61 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Best Illinois Small Business Insurance Reviews
Our research identified these three insurance providers as the best options for Illinois business owners. Here's what makes each company excel at delivering comprehensive coverage for your business needs.
NEXT
Best Customer Experience
MoneyGeek Rating
4.6/ of 5
4.5/5Affordability
4.7/5Customer Experience
4.8/5Coverage Options
Average Monthly Cost of General Liability Insurance
$113This rate is for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Monthly Cost of Workers' Comp Insurance
$76This rate is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Claims Process
3.9/5Ranked #4 nationallyOur Survey: Likely to Be Recommended to Others
4.8/5Ranked #1 nationally
Simply Business
Best for Coverage Options
MoneyGeek Rating
4.5/ of 5
4.5/5Affordability
4.2/5Customer Experience
4.9/5Coverage Options
Average Monthly Cost of General Liability Insurance
$90This rate is for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Monthly Cost of Workers' Comp Insurance
$75This average is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Claims Process
4.5/5The Hartford ranks #1 nationally for claims process satisfactionOur Survey: Likely to Be Recommended to Others
4.5/5The Hartford ranks #2 nationally for customer recommendations
Cheapest Business Insurance Companies in Illinois
The Hartford provides the most affordable business insurance in Illinois with rates of $92 monthly ($1,098 annually). Thimble and Simply Business follow as cost-effective options at $103 and $106 per month respectively. Compare complete pricing details for all providers in the table below.
| The Hartford | $92 | $1,098 |
| Thimble | $103 | $1,235 |
| Simply Business | $106 | $1,272 |
| Progressive Commercial | $109 | $1,308 |
| NEXT | $110 | $1,321 |
| Coverdash | $111 | $1,329 |
| Nationwide | $111 | $1,334 |
| biBERK | $114 | $1,373 |
| Hiscox | $118 | $1,411 |
| Chubb | $130 | $1,555 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest General Liability Insurance Companies in Illinois
We found The Hartford offers the cheapest general liability coverage in Illinois, with monthly rates of $90. Simply Business ranks second with $105 monthly premiums. You can compare all provider rates in the table below.
| The Hartford | $90 | $1,079 |
| Simply Business | $105 | $1,261 |
| Nationwide | $107 | $1,280 |
| Progressive Commercial | $110 | $1,321 |
| NEXT | $113 | $1,358 |
| Coverdash | $114 | $1,362 |
| Thimble | $117 | $1,409 |
| Hiscox | $125 | $1,499 |
| biBERK | $125 | $1,500 |
| Chubb | $130 | $1,566 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest Professional Liability Insurance Companies in Illinois
The Hartford offers the lowest-cost professional liability insurance (E&O) at $78 monthly ($940 annually). NEXT provides another budget-friendly option for Illinois business owners.
| The Hartford | $78 | $940 |
| NEXT | $80 | $961 |
| Progressive Commercial | $82 | $989 |
| Simply Business | $84 | $1,011 |
| Thimble | $84 | $1,011 |
| Hiscox | $85 | $1,015 |
| Coverdash | $85 | $1,021 |
| biBERK | $87 | $1,047 |
| Nationwide | $91 | $1,086 |
| Chubb | $98 | $1,170 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability/errors and omissions policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest Workers’ Comp Insurance Companies in Illinois
The Hartford offers the cheapest workers' comp insurance in Illinois at $75 monthly ($903 annually). NEXT and Thimble also provide competitive rates, making all three solid choices for affordable coverage.
| The Hartford | $75 | $903 |
| NEXT | $76 | $907 |
| Thimble | $77 | $925 |
| Progressive Commercial | $77 | $928 |
| Simply Business | $78 | $936 |
| Hiscox | $79 | $944 |
| Coverdash | $80 | $957 |
| biBERK | $82 | $986 |
| Nationwide | $89 | $1,066 |
| Chubb | $93 | $1,116 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest BOP Insurance Companies in Illinois
The Hartford offers the cheapest BOP rates in Illinois at $123 per month ($1,471 annually). Business owners can also find affordable BOP insurance with Thimble, Simply Business and Nationwide.
| The Hartford | $123 | $1,471 |
| Thimble | $133 | $1,595 |
| Simply Business | $157 | $1,880 |
| Nationwide | $159 | $1,904 |
| biBERK | $163 | $1,960 |
| Coverdash | $164 | $1,973 |
| Progressive Commercial | $166 | $1,993 |
| NEXT | $171 | $2,056 |
| Hiscox | $182 | $2,185 |
| Chubb | $198 | $2,370 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP policies. Survey results reflect limited sample data and may not represent all available rates in your area.
How Much Does Business Insurance Cost in Illinois?
Illinois business insurance costs between $81 and $162 monthly, with workers' compensation being the most affordable and business owner's policies being the most expensive. Rates vary based on the coverage type your business needs.
| BOP | $162 |
| General Liability | $114 |
| Professional Liability (E&O) | $85 |
| Workers Comp | $81 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Cost of Business Insurance by Industry and Coverage
Business insurance costs in Illinois vary significantly by industry and coverage type. MoneyGeek's analysis found workers' compensation for speech therapists costs just $7 monthly, while pressure washing businesses pay $1,471 for a business owner's policy.
Data filtered by:Results filtered by:
Select
Coverage Type:Business Owners Policy
Select
Industry:Accountants
| Accountants | Business Owners Policy | $36 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
What Factors Influence My Costs?
Your Illinois business insurance premiums might be higher than expected. Here are the key factors that affect your insurance costs in the state.
Industry Risk Level
Your line of work directly impacts your insurance costs. High-risk industries like construction face steeper premiums because job sites have more accidents and injuries. A construction company often pays $200 or more monthly for coverage, while a consulting business might pay just $40 for similar protection levels.
Geographic Location and Weather Risks
Illinois weather patterns affect what businesses pay for insurance. The state ranks fourth nationally in natural disaster frequency, with tornadoes and severe storms causing significant property damage. Insurance companies factor these risks into rates, especially for businesses in tornado-prone areas or flood zones.
Business Size
Your workforce size and revenue directly affect your insurance costs. Workers' compensation rates are calculated per $100 of payroll, while liability coverage costs reflect your annual revenue and customer traffic. A retail store with 20 employees and high foot traffic pays substantially more than a solo consultant working remotely.
Claims History
Prior insurance claims follow your business and influence your rates. Filing multiple claims can double your premiums across different coverage types. Insurance companies offer the best rates to businesses with claim-free records and strong risk management.
Coverage Types and Limits
Your premium reflects the coverage types you choose and your coverage limits. While higher limits increase costs, bundling coverage through a business owner's policy often saves money compared to buying separate policies.
Years in Business
Startup businesses pay more for coverage since insurers lack data on safety records. Operating claim-free for three to five years often leads to lower premiums as you build a positive track record with insurance carriers.
Professional Certifications
Safety certifications and professional licenses can reduce your insurance costs. Many insurers offer discounts for OSHA safety training completion and industry-specific credentials that show your commitment to risk reduction.
Illinois Business Insurance Buying Guide
Running a business takes considerable time and energy, which can make getting business insurance feel like another task on your endless to-do list. Our guide breaks down Illinois business insurance into simple steps, helping you confidently make informed coverage decisions.
What Coverage Is Required?
We've researched all Illinois business insurance requirements so you don't have to worry about missing anything. Check out our detailed breakdown of state requirements in the section below.
Workers' Comp
Illinois requires all businesses with employees to carry workers' compensation insurance, including businesses with part-time employees. This includes family members who work for the business.
Only sole proprietors, business partners, corporate officers and members of limited liability companies may exempt themselves from coverage, though this exemption typically doesn't apply to construction businesses or other "extra hazardous" industries.
The law is strict. An employer that knowingly fails to obtain insurance faces fines of up to $500 for every day of noncompliance, with a minimum fine of $10,000. Since 2006, the Illinois Workers' Compensation Commission has collected over $7 million in fines from companies without workers' comp coverage.
Commercial Auto Insurance
All business-owned or leased vehicles in Illinois must be covered by commercial auto insurance with minimum liability limits of $25,000/$50,000/$20,000. This means $25,000 for bodily injury per person, $50,000 for bodily injury per accident and $20,000 for property damage per accident.
Illinois also requires coverage for uninsured and underinsured motorists with the same minimum limits. If employees use personal vehicles for business purposes, consider hired and non-owned auto coverage to protect your business from liability.
Unemployment Insurance Tax
Illinois employers must register with the Illinois Department of Employment Security and pay unemployment insurance taxes for all employees.
While this isn't traditional insurance coverage you purchase from an insurance company, it's a mandatory state tax that benefits workers who lose their jobs through no fault of their own. You must register for a UI tax account within 30 days of becoming an employer and pay taxes based on your payroll.
Temporary Disability Insurance
Illinois businesses must also pay for temporary disability insurance for all employees. This coverage provides partial wage replacement for employees who become temporarily unable to work due to non-work-related illness or injury.
Unlike workers' compensation, this covers conditions unrelated to the workplace and ensures employees have some income during recovery periods.
What Coverage Do We Recommend?
Illinois keeps business insurance regulations light, putting you responsible for properly protecting your company. We've analyzed the best coverage options for the state's leading industries:
Manufacturing | General liability, product liability, workers' compensation, commercial property, business interruption, environmental liability, tornado coverage, cyber liability, supply chain interruption | Illinois automotive, machinery and food processing manufacturers face tornado damage risks, strict environmental regulations and cyber attacks. Chicago-area facilities require elevated crime coverage and complex urban liability exposures. |
Trucking | Commercial auto, cargo coverage, general liability, workers' compensation, severe weather coverage, urban crime coverage, cargo theft protection, hazmat transportation | Illinois trucking companies face high cargo theft rates in Chicago, tornado damage and complex urban traffic risks. Major interstate hub operations create elevated accident exposure and specialized cargo handling liability. |
Restaurant | General liability, product liability, commercial property, equipment breakdown, business interruption, tornado coverage, urban crime coverage, liquor liability, workers' compensation | Illinois restaurants face severe weather closures, urban crime risks in Chicago, and complex food safety regulations. High-end Chicago dining requires elevated liability limits due to celebrity clientele and reputation risks. |
Retail | General liability, commercial property, business interruption, tornado coverage, cyber liability, commercial crime, urban theft coverage, employment practices liability | Illinois retailers face tornado damage, high theft rates in urban areas and cyber risks from payment processing. Chicago's Magnificent Mile requires specialized coverage for high-value merchandise and tourist liability. |
How to Get the Best Cheap Business Insurance in Illinois
Small business owners in Illinois often struggle to find the right insurance coverage at reasonable rates. Here's how to secure reliable protection while keeping your costs under control:
- 1
Assess Your Actual Risks First
Start by evaluating real risks specific to your Illinois business operations. A Chicago restaurant needs strong liability and property coverage, while a Springfield consulting firm should focus on professional liability protection.
- 2
Get Quotes from Multiple Insurers
Insurance costs vary significantly between providers in Illinois. Contact at least three insurance companies to compare rates. A small retail store in Peoria could save hundreds annually by getting multiple quotes.
- 3
Choose Providers Based on Service Quality
Research each insurer's financial strength and reputation for claims handling in Illinois. A manufacturing company needs an insurer with 24/7 claims service, while a tech startup wants coverage for cyber threats.
- 4
Maximize Available Discounts
Look for bundling opportunities and safety program discounts offered to Illinois businesses. An Aurora retail store could save by combining general liability with property coverage and installing security systems.
- 5
Review Coverage Annually
Reassess your coverage needs as your Illinois business evolves. A Rockford contractor who expanded services needs updated coverage, while a growing Champaign retailer requires higher inventory protection limits.
Illinois Business Insurance: Bottom Line
Based on our analysis, NEXT, The Hartford and Simply Business are Illinois's best business insurance providers. However, what's ideal for you depends on your business risks and employee needs. Research each company's service quality, maximize discounts and select coverage that fits your budget.
Small Business Insurance in Illinois: FAQ
Small business owners in Illinois often have questions about choosing the right insurance coverage, so we've compiled expert answers to common concerns.
What business insurance is required by law in Illinois?
Illinois requires workers' compensation insurance for businesses with employees. Commercial auto insurance is mandatory for business vehicles with minimum limits of $25,000/$50,000/$20,000. Some contractors need surety bonds, while general liability remains optional.
How much does business insurance cost in Illinois?
Business insurance costs in Illinois range from $81 to $162 monthly, varying by coverage type. Workers' compensation is the most economical at $81, while Business Owner's Policies run $162. Actual costs depend on your industry, business size and claims history.
Which company has the cheapest business insurance in Illinois?
The Hartford offers the lowest rates at $92 monthly in Illinois, followed by Thimble ($103) and Simply Business ($106). Since rates vary by business-specific factors, compare multiple quotes.
What business insurance do I need for my small business in Illinois?
Start with general liability insurance to protect against customer injuries and property damage. If you employ staff, add workers' compensation. Business vehicles require commercial auto coverage. Retail stores need property insurance, while contractors require builders' risk coverage.
What is the best business insurance company in Illinois?
NEXT and The Hartford are the best business insurance companies in Illinois, with MoneyGeek scores of 4.63. Simply Business and Nationwide follow as excellent alternatives.
Consider comparing multiple insurance providers to ensure you find coverage that matches your specific business requirements.
Do small businesses in Illinois need workers' compensation insurance?
Illinois law requires businesses with employees to carry workers' compensation insurance. Only sole proprietors and business owners without employees are exempt from this requirement.
What factors affect business insurance costs in Illinois?
Your industry type significantly impacts costs. Construction businesses pay higher premiums than retail stores. Location within Illinois affects rates, with urban areas costing more than rural zones. Employee count drives workers' compensation costs, while claim history and safety measures influence rates.
How do I get cheap business insurance in Illinois?
Compare quotes from multiple insurers, starting with The Hartford and NEXT. Bundle policies, implement safety programs and focus on coverage quality rather than just finding the lowest price.
What's the difference between general liability and errors and omissions (professional liability) insurance in Illinois?
General liability insurance covers physical incidents like customer injuries and property damage at your business. Professional liability (E&O) protects against service-related mistakes, including missed deadlines or incorrect advice.
Can I get business insurance quotes online in Illinois?
Yes, all major insurers provide online quotes for Illinois businesses. Complex operations like contracting may require agent assistance for specialized coverage options.
How We Scored the Best Business Insurance Companies in Illinois
Small business owners in Illinois need reliable coverage that protects operations without breaking budgets. We designed our methodology to help Illinois entrepreneurs navigate challenges like tornado risks and the state's optional workers' compensation laws.
We studied thousands of quotes from 79 industries across four coverage types for a two-employee firm with $300,000 annual revenue and $150,000 payroll. All policies included $1 million per occurrence and $2 million total per year, with BOPs adding $5,000 business property coverage.
- Affordability (50% of score): We compared rates across multiple carriers, factoring in premiums, deductibles and coverage limits to determine the best value for Illinois businesses.
- Customer experience (30% of score): Our analysis examined claims processing speed, customer support quality and digital tools based on verified policyholder feedback.
- Coverage options (15% of score): We evaluated policy customization options, industry-specific endorsements and coverage flexibility for growing businesses.
- Financial strength (5% of score): We reviewed AM Best ratings and other financial metrics to ensure carriers can reliably pay claims.
This approach helps Illinois small business owners compare insurers on what matters most: affordable premiums, reliable service, adequate coverage and financial stability.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- NEXT. "NEXT Empowers Agents with Enhanced Products, Cutting-Edge Digital Tools, Opening New Revenue Opportunities and Sparking Momentum in Small Business Insurance." Accessed August 19, 2025.
- Simply Business. "Simply Business Offers Insurance to Third-Party Sellers Through Amazon Insurance Accelerator." Accessed August 19, 2025.
- The Hartford. "Customer Claims Ratings and Reviews." Accessed August 19, 2025.
- Trustpilot. "NEXT." Accessed August 19, 2025.
- Trustpilot. "Simply Business US." Accessed August 19, 2025.
- Trustpilot. "The Hartford." Accessed August 19, 2025.