NEXT leads Illinois business insurance with top-rated customer service and comprehensive coverage options. Though it ranks fifth for affordability and sixth for stability, NEXT's excellent service and broad protection make it the smart choice for business owners. The Hartford and Simply Business also offer strong coverage for companies across the state.
Best Small Business Insurance in Illinois
Illinois businesses choose NEXT, The Hartford and Simply Business for top-rated coverage starting at just $79 per year.
Get matched to the best Illinois commercial insurer for you below.
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Updated: January 6, 2026
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Business Insurance in Illinois: Key Takeaways
NEXT leads Illinois in customer service and coverage breadth among best small business insurance providers despite moderate rates.
Illinois small businesses pay $110 monthly ($1,324 yearly) on average for general liability, professional liability, workers' comp and BOP coverage.
Securing affordable small business insurance coverage requires assessing risks and comparing quotes.
Best Small Business Insurance Companies in Illinois
| NEXT Insurance | 4.63 | $110 | 1 | 2 |
| The Hartford | 4.63 | $92 | 2 | 3 |
| Simply Business | 4.50 | $106 | 5 | 1 |
| Nationwide | 4.48 | $111 | 2 | 4 |
| Coverdash | 4.42 | $111 | 6 | 2 |
| biBERK | 4.40 | $114 | 2 | 5 |
| Progressive Commercial | 4.33 | $109 | 7 | 5 |
| Thimble | 4.33 | $103 | 8 | 5 |
| Hiscox | 4.28 | $118 | 4 | 6 |
| Chubb | 4.27 | $130 | 3 | 4 |
Note: This data represents a small business with 2 employees, $150,000 in payroll and $300,000 in annual revenue. All scores were calculated for four of the most common coverage types in the industry across 79 industries in the United States.
RESEARCH THE BEST BUSINESS INSURANCE IN ILLINOIS BY COVERAGE TYPE
Discover the best or cheapest business insurer in Illinois for your desired coverage type in our resources below:
NEXT
Best Illinois Business Insurance
MoneyGeek Rating
4.6/ 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: Digital Experience
4.8/5 (1st)Our Survey: Likely to Be Recommended to Others
4.8/5 (1st)
The Hartford
Cheapest Illinois Business Insurance
MoneyGeek Rating
4.6/ 5
4.6/5Affordability
4.6/5Customer Experience
4.7/5Coverage 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 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
4.5/5 (1st)Our Survey: Agent Service
4.7/5 (1st)
Simply Business
Best Commercial Coverage Options in Illinois
MoneyGeek Rating
4.5/ 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 rate is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Research: Digital Experience
4.5/5Our Survey: Provider Service
4.0/5
How Much Does Business Insurance Cost in Illinois?
Business insurance costs in Illinois range from $81 monthly for workers' compensation to $162 for a business owner's policy. Industry and risk factors drive these price differences. Below you can compare average rates for the four most common business insurance types in the Prairie State:
We found average business insurance costs for Illinois companies for commonly needed coverage are as follows:
- General Liability Cost: $114 monthly or $1,364 annually
- Workers' Comp Cost: $81 per month or $967 per year
- Professional Liability (E&O) Cost: $85 per month or $1,025 annually
- Business Owners Policy (BOP) Cost: $162 monthly or $1,939 annually
| BOP | $162 | $1,939 |
| General Liability | $114 | $1,364 |
| Professional Liability (E&O) | $85 | $1,025 |
| Workers Comp | $81 | $967 |
Note: We analyzed rates for your two-employee business across 79 industries, focusing on general liability, professional liability, workers' compensation and business owner's policies. Our Illinois research covers the companies we surveyed and won't include every rate available to your specific business.
Illinois Business Insurance Cost by Industry and Coverage
Business insurance costs in Illinois depend heavily on your industry and chosen coverage, ranging from $7 to $1,471 monthly. You can compare Illinois commercial insurance costs for your specific coverage type and industry below.
Data filtered by:
General Liability
Select
| Accountants | General Liability | $24 | $292 |
| Ad Agency | General Liability | $39 | $468 |
| Auto Repair | General Liability | $168 | $2,011 |
| Automotive | General Liability | $59 | $706 |
| Bakery | General Liability | $100 | $1,196 |
| Barber | General Liability | $49 | $586 |
| Beauty Salon | General Liability | $74 | $884 |
| Bounce House | General Liability | $77 | $930 |
| Candle | General Liability | $61 | $727 |
| Cannabis | General Liability | $74 | $887 |
| Catering | General Liability | $97 | $1,159 |
| Cleaning | General Liability | $146 | $1,753 |
| Coffee Shop | General Liability | $99 | $1,187 |
| Computer Programming | General Liability | $32 | $385 |
| Computer Repair | General Liability | $53 | $631 |
| Construction | General Liability | $193 | $2,321 |
| Consulting | General Liability | $24 | $290 |
| Contractor | General Liability | $281 | $3,374 |
| Courier | General Liability | $216 | $2,587 |
| DJ | General Liability | $28 | $335 |
| Daycare | General Liability | $36 | $435 |
| Dental | General Liability | $24 | $284 |
| Dog Grooming | General Liability | $70 | $840 |
| Drone | General Liability | $18 | $221 |
| Ecommerce | General Liability | $81 | $968 |
| Electrical | General Liability | $124 | $1,488 |
| Engineering | General Liability | $44 | $527 |
| Excavation | General Liability | $514 | $6,164 |
| Florist | General Liability | $47 | $567 |
| Food | General Liability | $119 | $1,425 |
| Food Truck | General Liability | $156 | $1,876 |
| Funeral Home | General Liability | $67 | $799 |
| Gardening | General Liability | $124 | $1,487 |
| HVAC | General Liability | $271 | $3,247 |
| Handyman | General Liability | $269 | $3,231 |
| Home-based | General Liability | $26 | $315 |
| Home-based | General Liability | $51 | $606 |
| Hospitality | General Liability | $72 | $863 |
| Janitorial | General Liability | $151 | $1,815 |
| Jewelry | General Liability | $44 | $533 |
| Junk Removal | General Liability | $179 | $2,150 |
| Lawn/Landscaping | General Liability | $133 | $1,591 |
| Lawyers | General Liability | $25 | $302 |
| Manufacturing | General Liability | $70 | $845 |
| Marine | General Liability | $31 | $371 |
| Massage | General Liability | $106 | $1,268 |
| Mortgage Broker | General Liability | $25 | $303 |
| Moving | General Liability | $137 | $1,642 |
| Nonprofit | General Liability | $40 | $475 |
| Painting | General Liability | $159 | $1,903 |
| Party Rental | General Liability | $88 | $1,052 |
| Personal Training | General Liability | $26 | $316 |
| Pest Control | General Liability | $36 | $427 |
| Pet | General Liability | $62 | $742 |
| Pharmacy | General Liability | $68 | $818 |
| Photography | General Liability | $27 | $319 |
| Physical Therapy | General Liability | $121 | $1,457 |
| Plumbing | General Liability | $399 | $4,786 |
| Pressure Washing | General Liability | $1,010 | $12,118 |
| Real Estate | General Liability | $59 | $704 |
| Restaurant | General Liability | $160 | $1,919 |
| Retail | General Liability | $72 | $866 |
| Roofing | General Liability | $428 | $5,136 |
| Security | General Liability | $153 | $1,842 |
| Snack Bars | General Liability | $130 | $1,554 |
| Software | General Liability | $29 | $348 |
| Spa/Wellness | General Liability | $118 | $1,412 |
| Speech Therapist | General Liability | $34 | $413 |
| Startup | General Liability | $32 | $379 |
| Tech/IT | General Liability | $29 | $349 |
| Transportation | General Liability | $42 | $498 |
| Travel | General Liability | $23 | $276 |
| Tree Service | General Liability | $143 | $1,718 |
| Trucking | General Liability | $113 | $1,358 |
| Tutoring | General Liability | $33 | $400 |
| Veterinary | General Liability | $49 | $593 |
| Wedding Planning | General Liability | $31 | $367 |
| Welding | General Liability | $182 | $2,183 |
| Wholesale | General Liability | $49 | $591 |
| Window Cleaning | General Liability | $176 | $2,108 |
Note: We analyzed rates for your two-employee business across 79 industries, focusing on general liability, professional liability, workers' compensation and business owner's policies. Our Illinois research covers the companies we surveyed and won't include every rate available to your specific business.
What Factors Affect Illinois Business Insurance Costs?
Several business insurance cost factors in Illinois shape your premium, from wage-linked workers' compensation requirements to severe weather patterns affecting property coverage.
- Wage-Indexed Workers' Compensation Benefits: Illinois ties workers' compensation benefits to the Statewide Average Weekly Wage. Maximum weekly disability payments reached $1,897.92 in 2024, keeping injured worker benefits aligned with Illinois wage growth but making claims costlier than neighboring states with lower benefit caps. The National Council on Compensation Insurance recommended a 5.3% rate cut for 2025, yet Illinois businesses continue paying elevated workers' compensation premiums.
- Catastrophic Hail and Severe Weather Losses: State Farm paid $638 million in Illinois hail damage claims during 2024, with the insurer paying $1.26 for every dollar collected in premiums that year. Illinois catastrophe losses exceeded annual provisions in 13 of the last 15 years, with tornadoes, severe thunderstorms and winter weather creating unpredictable losses. Illinois homeowners insurance premiums rose 50% between 2021 and 2024, directly impacting commercial property costs statewide.
- Chicago Metropolitan Cost Premium: Chicago businesses pay higher premiums than downstate Illinois operations due to dense urban development, elevated property values and increased crime rates affecting commercial property exposure. Urban businesses pay premium surcharges reflecting higher litigation frequency and theft exposure compared to Bloomington, Springfield or Peoria locations.
- Employment Law and Biometric Privacy Exposure: Illinois Biometric Information Privacy Act violations can result in $5,000 damages per employee for companies collecting fingerprints or facial recognition data, creating substantial exposure for larger workforces. Although amendments took effect August 2, 2024, businesses with 1,000 employees collecting biometric data could face $5,000,000 in damages plus attorney fees for intentional violations. Illinois employment regulations and biometric privacy laws increase professional liability costs for businesses operating in the state.
Illinois Business Insurance Quotes
Comparing quotes from multiple Illinois insurers helps you find competitive rates while ensuring coverage matches your business needs. Use the tool below to get customized quotes based on your industry and location.
Get Illinois Business Insurance Quotes from the Best Insurers
Select your industry and state to get a customized quote for your Illinois business.
Industry
State
Illinois Business Insurance Requirements
Illinois maintains straightforward business insurance requirements compared to neighboring states. The state requires workers' compensation for employers with employees, commercial auto coverage for business vehicles, liquor liability for on-premises alcohol sales and surety bonds for specific licensed contractors.
Illinois workers' comp insurance requirements
Illinois requires workers' compensation coverage for employers with one or more employees, whether full-time, part-time, seasonal or occasional, covering anyone hired, injured or principally employed in Illinois. Sole proprietors, partners, corporate officers and LLC members may exempt themselves except in construction, trucking or extra-hazardous occupations. Employers risk fines up to $500 per day with $10,000 minimum penalties for knowingly failing to obtain coverage, with corporate officers held personally liable.
Illinois commercial auto insurance requirements
Illinois law requires all commercial vehicles to maintain minimum liability coverage of $25,000 per person and $50,000 per accident for bodily injury, plus $20,000 for property damage. Illinois automatically includes uninsured motorist coverage in all auto liability policies, protecting businesses against at-fault drivers lacking adequate insurance. Driving uninsured results in fines and license plate suspension.
Illinois liquor liability insurance requirements
Illinois requires liquor liability insurance under the Liquor Control Act for establishments selling alcoholic beverages consumed on premises. Maximum liability limits reach $88,051.76 per person injured and $107,618.82 for loss of support effective January 2025, adjusted annually by inflation. Retailers must provide insurance certificates before obtaining state liquor licenses, though carry-out only establishments don't need this coverage.
Illinois contractor surety bond requirements
Illinois requires plumbing contractors to maintain $20,000 surety bonds per 77 IL Admin. Code 894.20, covering noncomplying work and protecting customers from financial losses. Irrigation contractors installing lawn sprinkler systems need $20,000 bonds under 225 ILCS 320/2.5. Other licensed contractors must obtain industry-specific bonds to receive state licensing and perform specialized work.
What Business Insurance Coverage Is Recommended For Illinois Companies?
Business insurance in Illinois has light regulation, giving you the flexibility to choose coverage that matches your specific needs. We've analyzed what works best for the major industries driving Illinois business.
Manufacturing | General liability, product liability, workers' compensation, commercial property, business interruption, environmental liability, tornado coverage, cyber liability, supply chain interruption
| Product defect lawsuits, environmental violations from chemical spills, tornado damage to expensive equipment and cyber attacks targeting industrial systems threaten manufacturing facilities. Chicago-area plants experience elevated property crime and workers' compensation claims from machinery injuries, while automotive and food processing factories must comply with strict Illinois environmental regulations requiring specialized pollution liability coverage. |
Trucking | Commercial auto, cargo coverage, general liability, workers' compensation, severe weather coverage, urban crime coverage, cargo theft protection, hazmat transportation
| Cargo theft in Chicago ranks among the highest nationally, with electronics and pharmaceuticals frequently targeted at truck stops and warehouses. Illinois weather creates tornado damage and winter accident risks, while operating through major interstate hubs increases collision exposure. Trucking operators need specialized coverage for cargo liability, hazmat transportation violations and sleeper cab accidents on Interstate 80 and Interstate 55 corridors. |
Restaurant | General liability, product liability, commercial property, equipment breakdown, business interruption, tornado coverage, urban crime coverage, liquor liability, workers' compensation
| Foodborne illness lawsuits, liquor liability from overserving patrons, slip-and-fall injuries and employee burns create constant exposure. Restaurant owners in Chicago's competitive dining scene encounter property crime, severe weather closures during tornado season and strict Illinois food safety inspections. High-end establishments need elevated liability limits due to expensive wine collections, celebrity clientele and reputational damage from social media complaints that can destroy business overnight. |
Retail | General liability, commercial property, business interruption, tornado coverage, cyber liability, commercial crime, urban theft coverage, employment practices liability
| Customer slip-and-fall claims, shoplifting losses, credit card data breaches and product liability lawsuits affect retail stores statewide. Stores on Chicago's Magnificent Mile need coverage for high-value luxury merchandise theft, tourist injuries and reputational harm from viral incidents. Illinois tornado season and severe weather create business interruption risks, while retail operations require employment practices liability for wage disputes and discrimination claims. |
How to Get the Best Cheap Business Insurance in Illinois
Finding the best business insurance requires balancing Illinois-specific risks against your budget constraints. Follow these steps to secure coverage that protects your business without overpaying.
- 1
Assess risks your Illinois business actually faces
Getting business insurance starts with honest risk assessment, not generic checklists. River North restaurants need liquor liability and food spoilage coverage for summer blackouts, while Naperville contractors face winter job delays and equipment theft. Manufacturers using fingerprint scanners risk BIPA lawsuits costing $5,000 per affected worker, which most general liability policies exclude without cyber coverage.
- 2
Compare carriers who understand Illinois risks
Request quotes from carriers experienced with Illinois tornado and cargo theft risks: the Hartford and NEXT rank highest for customer service, while regional carriers like EMC Insurance often beat national brands for manufacturers. When standard insurers reject you, the Illinois assigned risk pool through NCCI provides workers' comp at 50% higher cost, and the Illinois Auto Insurance Plan covers high-risk commercial vehicles.
- 3
Test customer service before claims happen
Call potential insurers' claims departments at 7 p.m. or during weekend emergencies to test real response times, not just business hours. Ask how quickly they dispatch adjusters after storm damage and whether they advance emergency repair funds. Your restaurant can't stay closed three weeks waiting for approval, and saving $200 annually means nothing when slow claims processing costs $10,000 in lost revenue.
- 4
Stack discounts without sacrificing protection
Bundle general liability with property coverage into a BOP because you can save 20% to 30% compared to separate policies, crucial after commercial property rates jumped following State Farm's $638 million hail payout. Install security systems to qualify for loss prevention discounts, implement safety training to reduce workers' comp premiums, and pay annually to avoid installment fees adding 8% to 12%. Finding cheap business insurance means proving lower risk, not hunting for gaps.
- 5
Update coverage when your business changes
Schedule annual reviews with your agent, not just when renewals arrive. For example, if you're expanding from carryout to dine-in, you'll need liquor liability only after serving wine. Adding a second employee triggers mandatory workers' comp, installing biometric timeclocks creates BIPA exposure requiring cyber liability, and purchasing delivery vehicles shifts coverage requirements.
Best Business Liability Insurance Illinois: Bottom Line
NEXT, The Hartford and Simply Business lead Illinois business insurance with strong customer service and comprehensive coverage options. Your choice depends on industry-specific risks and budget, so compare each provider's claims handling and available discounts before buying.
Business Insurance Illinois: FAQ
Small business owners in the Prairie State face complex decisions when selecting business insurance coverage, and we've compiled answers to their most common questions below:
What business insurance is required by law in Illinois?
Illinois requires workers' compensation insurance for all businesses with one or more employees, with very limited exceptions. Commercial auto insurance is mandatory for all business-owned vehicles with minimum liability limits of $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $20,000 for property damage (25/50/20), plus uninsured motorist coverage.
How much does business insurance cost in Illinois?
Business insurance costs in Illinois range from $81 for workers' comp coverage to $162 for BOP insurance. The Hartford costs $1,098 per year in our study across all coverage types. Actual costs depend on your industry, business size and claims history.
Which company has the cheapest business insurance in Illinois?
The Hartford offers the most affordable business insurance in Illinois at $92 monthly, with Thimble at $103 and Simply Business at $106 following close behind.
What business insurance does my small business need in Illinois?
General liability, workers' compensation and commercial property coverage form the baseline for Illinois businesses. Add product liability for manufacturing, liquor liability for restaurants and cargo coverage for trucking operations.
How We Scored the Best Business Insurance Companies in Illinois
Small business owners in Illinois need reliable coverage that protects their operations without breaking their budgets. We designed our methodology to help Illinois entrepreneurs navigate challenges like hurricane 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 company rates across all coverage types to identify the most cost-effective options for small businesses that need comprehensive financial protection without overpaying.
- Customer experience (30% of score): We analyzed J.D. Power satisfaction ratings, NAIC complaint data, online review sites and independent agency feedback to assess real-world service quality when you need claims handled quickly.
- Coverage options (15% of score): We evaluated the breadth of coverage types, policy limits and add-on options available to accommodate growing businesses and Illinois's diverse industry needs.
- Financial strength (5% of score): We reviewed AM Best ratings, Moody's assessments and company financial reports to ensure insurers can reliably pay claims, especially important given Illinois's frequent weather disasters.
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. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in 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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
sources
- American Bar Association. "How Will the Recent Amendments to Illinois's BIPA Affect the Use of Biometric Data?." Accessed January 10, 2026.
- Chicago Tribune. "Illinois Homeowners Insurance Premiums Up 50% Over Three Years, According to New Report." Accessed January 10, 2026.
- Illinois Department of Insurance. "2024 Cost Containment Annual Report to the General Assembly." Accessed January 10, 2026.
- Illinois Department of Insurance. "Auto Insurance Shopping Guide." Accessed January 10, 2026.
- Illinois Department of Public Health. "Corporation Plumbing Contractor Surety Bond." Accessed January 10, 2026.
- Illinois Department of Public Health. "Limited Liability Irrigation Contractor Surety Bond." Accessed January 10, 2026.
- Illinois Liquor Control Commission. "Application for State of Illinois Retailer's Liquor License." Accessed January 10, 2026.
- Illinois Liquor Control Commission. "Dram Shop Liability Limits." Accessed January 10, 2026.
- Illinois Workers' Compensation Commission. "Benefit Rates." Accessed January 10, 2026.
- Illinois Workers' Compensation Commission. "Insurance." Accessed January 10, 2026.
- National Council on Compensation Insurance. "Illinois State Advisory Forum." Accessed January 10, 2026.
- State Farm. "Understanding the Issues in Illinois." Accessed January 10, 2026.