There is no single policy that fits every new business. A cleaning company, a contractor with work vans, and a retail store have different exposures. Start by describing what the business actually does, not just its name or industry.
General liability and business property
General liability can help respond to covered claims involving injury to others, damage to others' property, and certain personal or advertising injuries. Commercial property insurance addresses covered damage to business property such as a building, equipment, furniture, or inventory. These are different needs; liability coverage is not a substitute for insuring your own property.
A Business Owners Policy, or BOP
A BOP typically combines general liability, business property, and business income coverage for eligible businesses. It does not mean everything is included. A standard BOP generally does not include workers' compensation, commercial auto, or professional liability. Eligibility and coverage vary by insurer.
Vehicles and employees
Discuss any vehicle used for business, including personal vehicles used by owners or employees. Commercial auto or other appropriate business-auto coverage may be needed depending on ownership and use. Do not assume that all work-related driving is covered by a personal auto policy.
Illinois generally requires workers' compensation insurance when a business has even one employee, including a part-time employee, with limited exceptions. Ownership exemptions and special situations need separate review. Calling a worker a subcontractor does not automatically settle the requirement.
Additional needs and contract requirements
Professional services may call for professional liability coverage. A contract may also require higher liability limits or particular policy endorsements. Ask your agent to review the actual requirements; the words "fully insured" do not explain which risks a policy covers.
What to gather before asking for a quote
Prepare a description of your work, location, expected revenue, employees, subcontractors, vehicles, equipment, and any written insurance requirements. For example, a new cleaning business should explain whether it cleans homes or offices, hires help, and uses vehicles to travel between jobs.
How J&L can help
We review your operations and available documents, explain potential coverage needs, and explore options through our available markets. We can also help you understand which requirements need attention before a contract starts.
