Business Insurance Chicago: Which is Right For Your Company?

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Business Insurance Chicago: What does your small business need?

Are you in search of small business insurance in Chicago?  Before shopping for insurance quotes, it’s important that you understand what coverage your small business needs and what is required by the state of Illinois.

Insured ASAP is a leading insurance agency in Chicago that provides the most affordable small business insurance quotes.  Contact us today with your questions or to request a business insurance quote: (800) 641-7488

For small business owners and entrepreneurs in Chicago, it can be confusing to understand the coverage you and your employees require.

While each business and industry are different there’s no question that insurance needs to be included in all of your planning and business strategy.  Not only does insurance protect you against a significant loss, including the loss of your business or personal property, it also is a requirement of doing business with many clients.

But which is right for you? Here are some basics to understand when selecting insurance for your business:

The Myth of LLC or Corporation Status

When starting a business many entrepreneurs and small business owners think long and hard when it comes to choosing a business structure that works for them. But while different business structures might protect your personal assets they do not provide liability protection.   

You will still need to find the right business insurance policy. Don’t make the mistake of assuming you and your employees are covered based on the business structure you choose.

General Liability Insurance

General liability is one of the most parts of any business insurance policy.  For business owners and entrepreneurs , this coverage will be the core of your insurance.

In the event of damages incurred as a result of bodily injury, property damage and/or medical expenses, general liability insurance protects you, your business and your employees from a possible lawsuit.

What Does General Liability Insurance Cover?

It includes protection from issues regarding libel, slander, and the cost of defending lawsuits.  

In addition, General Liability Insurance provides protection in the event of settlement bonds or judgments required during an appeal procedure.

Certificate of Liability Insurance

Business owners are often required to provide proof of business insurance in the form of a Certificate of Liability Insurance.  City municipalities, landlords, vendors sometimes request this and ask they are listed as a “certificate holder.”

business insurance chicago certificate of insurance 

As shown above, a certificate is a single page document that outlines various policy information including agency, insured, insurer, type of insurance, policy number, dates of coverage and policy limits.

Commercial General Liability Coverage

It is very common for small business insurance to consist of general liability insurance in the following amounts:

  • $1,000,000 Each Occurence
  • $300,000 Damage to Rented Premises
  • $5,000 Medical Expenses
  • $1,000,000 Personal & Advertising Injury
  • $2,000,000 General Aggregate
  • $2,000,000 Products & Completed Operations Aggregate

Who Needs It

The City of Chicago typically mandates that certain types of businesses carry the above liability limits.  Some examples include:

But just because the City of Chicago hasn’t enforced your insurance doesn’t mean you’re in the clear.  Many commercial property owners mandate that a tenant obtains business insurance that includes commercial liability insurance at minimum.

But don’t make the mistake of stopping at general liability for business insurance Chicago.  In most cases, you will need more coverage and protection.

Property Insurance

Operating of a successful business typically includes some level of property ownership and assets.  Just as you most likely have personal insurance for your home or car, you will need to do the same for the property your business owns.

Property insurance can be broken down to two types of coverage.

Commercial Property

Commercial property insurance provides protection to the building your small business occupies.  This type of coverage is necessary for businesses who own their commercial property.

Those who do not own and lease a property or space in a commercial building would not need to obtain this type of coverage.

Business Personal Property

Often times, small businesses opt for business personal property coverage.  BPP helps protect business contents and inventory from damage due to fire or water and theft.

The main things covered by business personal property include:

  • Business Inventory
  • Furniture
  • Furnishings
  • Computers
  • Electronics
  • Heavy equipment
  • Machinery

Besides the above, BPP provides coverage to any moveable items owned and used by your business

If your business is home based, business personal property insurance may not be an option.  In cases like this, it’s generally a good idea to consult with your home or renters insurance agent to determine whether your homeowners policy includes a business property sub-limit.  If not, your policy may be endorsed to add this type of coverage. 

Professional Liability

Many service-based organizations and small business will require Professional Liability coverage. Accountants, Bookkeepers, Insurance Agents, Real Estate Brokers, Consultants and Lawyers are just some that should carry professional liability insurance. 

Product Liability Insurance

If you are a business that manufactures products in Chicago or abroad, you will require Product Liability Insurance.

Product Liability Insurance helps to protect your small business against financial loss that may arise from legal liability incurred because of injury or damage resulting from the use of a covered product or out of the liability incurred by a contractor after a job is completed.

Business Specific Insurance

Commercial Auto Insurance, Commercial Umbrella, Errors and Omissions, Workers Compensation, Cyber Liability and Data Breach are just a couple other types of insurance that your small business may need.

Many small business industries can opt in for a BOP, or business owners insurance package.

A business owners package is a convenient way to bundle all of the above types of coverage into one policy.  

Business Insurance Chicago — Understand The Risks

While there is a significant upside to owning your own business there are also considerable risks associated with running a commercial enterprise. And as the market evolves more situations arise that require the best insurance protection for your assets and business.

If you don’t understand the risks it’s easy to lose the business you have worked so hard to build. Experts today list property damage, data breaches, and export and transit issues as tops on the list.   Even just having employees includes a significant amount of risk to your business.

Each business is different. Prior to selecting and finalizing your insurance, it’s important to understand the unique risks for your business, market, and location.

Perform an Annual Checkup

Many savvy entrepreneurs and small business owners set aside time both annually and quarterly to review their progress and make plans for the future. They may review resource allocation, financial performance, and their sales pipeline regularly.

But they don’t always take the time to review their business insurance needs. When it comes to adapting to your growth and market trends, no piece is as essential as your business insurance.

Whether you revenues have expanded, you’ve added employees or services, or even in the unfortunate event of a loss of a major contract, it’s important to perform an annual checkup to your insurance needs.

  

Business Insurance in Chicago Starts Here

Knowing the insurance requirements for your small business are the first step in finding the right fit for you, your employees, and your clients. Protecting your assets and your business also requires finding the best partner to provide your insurance needs.

Insured ASAP is unique among our competitors.  Our close relationship to some of the nation’s largest business insurance companies gives us the ability to provide immediate quotes at the most affordable rates in Chicago.

To begin, agents at Insured ASAP will ask questions and get to know your business and your unique requirements.  We recognize that there is no one size fits all approach when it comes to business insurance.

Contact us today for a same day business insurance quote: (800) 641-7488

Illinois Business Insurance Requirements

Chicago Business Affairs and Consumer Protection

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7213 W. 84th St.
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