The Bare Minimum
Illinois law sets out some minimum insurance requirements that all businesses need to follow. If your business has employees, you are required to carry workers compensation insurance for them in case they are injured on the job. You may also be required to carry disability insurance and unemployment insurance for them, although that depends on certain factors, such as how many hours a week they work for you.
General Liability Insurance
Although not required by law, this is the minimum level of coverage most business experts recommend. This type of policy protects you in case you or an employee of your business injures someone or damages their property.
Business Income Insurance
Small businesses often operate on a small profit margin, so a prolonged shutdown can be disastrous. This insurance helps mitigate the risk of that by covering you if your business is forced to temporarily close due to a natural disaster or other covered event.
Commercial Property Insurance
If your business owns or operates property, this insurance is essential. It covers damage to your inventory, fixtures and buildings that are caused by covered events.
Product Liability Insurance
This isn’t necessary for service-based small businesses, but if you’re making and selling items, it’s a good idea to have this coverage. It protects you if you are sued over claims of a defective or dangerous product.
Professional Liability Insurance
This insurance covers you in case you are accused of malpractice or other issues while providing a service. In some industries, such as health care, you may be required by law to carry it.
Commercial Auto Insurance
If you operate a fleet of vehicles, you probably already know that you need this. However, you may need a commercial liability policy even if you just use your personal vehicle for business. Personal auto insurance often doesn’t cover vehicles while they’re being used for more than just commuting to and from work.
These are some of the most common types of commercial insurance, but there are other plans that can provide you additional coverage you might need. If you’re not sure whether your business is properly insured, contact a Belleville, IL insurance agent today to go over your options.