Nationwide offers Illinois’ best general liability insurance in MoneyGeek’s analysis, with a score of 96 out of 100. However, The Hartford, NEXT, Thimble, and Hiscox are also great options for general liability policies.
Best General Liability Insurance in Illinois
Updated: June 17, 2025
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Key Takeaways
Overall, the best general liability insurance company in Illinois is Nationwide, which has a great balance of affordable rates for LLCs and good customer service.
The cheapest general liability insurance for sole proprietors in Illinois is offered by Thimble at $24 per month. For LLCs, NEXT is the most affordable option at $31 a month.
General liability insurance costs in Illinois depend on your industry, and we found they can range from $31 to $4,215 per month on average.
Best Cheap General Liability Insurance in Illinois
| Nationwide | 96 | $39 | $43 |
| The Hartford | 95 | $33 | $60 |
| NEXT | 90 | $27 | $31 |
| Thimble | 90 | $24 | $77 |
| Hiscox | 83 | $32 | $197 |
*Rates were based on a $1,000,000 per occurrence and $2,000,000 aggregate limit for a software development company.
Nationwide: Best Overall
pros
Low rates for LLC businesses
Large coverage selection
Low customer claims frequency
cons
Higher rates for sole proprietors
COMPANY HIGHLIGHTS
We recommend Nationwide as Illinois's leading general liability insurer due to its blend of competitive costs and reliable service delivery. The company matches the lowest NAIC claims ratio available and earns 2nd place for LLC affordability with standard rates averaging $468 per year.
NEXT: Cheapest Overall
pros
Easy fast buying process
Very cheap rates overall, regardless of business size
Business-insurance-only focus
cons
Higher customer complaint frequency
COMPANY HIGHLIGHTS
We selected NEXT as Illinois's most affordable general liability insurance option. Sole proprietors can secure coverage for just $27 monthly, while LLCs pay $31 per month. Despite having a higher claims ratio compared to other insurers we analyzed in the state, NEXT provides a streamlined purchasing experience with same-day proof of insurance available.
How Much Is General Liability Insurance in Illinois?
An average general liability insurance policy in the Prairie State typically costs around $31 per month for sole proprietors and $81 per month for LLCs. However, this only represents software development companies and the costs can vary widely by industry.
| Cleaning | $3,331 | $181 |
| General Contractor | $4,215 | $291 |
| Software Development | $81 | $31 |
*Rates are based on a $1,000,000 per occurrence and $2,000,000 aggregate coverage policy for general liability.
Factors That Impact General Liability Insurance Costs in Illinois
General liability insurance costs can fluctuate based on a number of different factors in Illinois. In the list below, you can see these factors and their impacts on your coverage costs:
Policy limits
Coverage limits can greatly influence insurance premiums. Opting for higher limits raises costs, while lower limits usually lead to more affordable premiums.
Number of employees and payroll costs
Businesses with a large workforce and high payroll costs often face increased general liability insurance expenses. This trend is evident in both LLCs and sole proprietorships.
Business location
Where your business operates can significantly affect your insurance expenses. Keep in mind that state-level average rates can differ from city to city, so these variations should be considered when assessing your coverage needs.
Claims history
A record of multiple claims can make a business appear riskier to insurers, which often leads to higher premiums.
Industry
Industries with increased risk levels, such as construction, generally incur higher general liability insurance costs. Similar to how business insurance programs in Illinois may adjust rates based on specific industry risks.
Illinois General Liability Insurance: Buyer's Guide
Business insurance is a complicated industry and can be difficult to navigate. So, to simplify your understanding of general liability insurance, we've created a short guide detailing how to get the best coverage, defining what it covers, listing requirements in Illinois, and explaining how much coverage you should consider getting.
How to Find the Best General Liability Insurance Company
To help ensure that you get the best small business insurance regardless of your industry, we've created a step-by-step guide to simplify your coverage search.
- 1
Define your coverage needs
Determine your liability risk by considering your industry, services, customer types, business size and market impact. Assess the frequency and costs of common claims in your industry to evaluate coverage options better.
- 2
Research average costs for your business
To understand how good of a deal you're getting from business insurance companies, you need to research average costs for your particular business.
- 3
Consult similar businesses
You can get recommendations from businesses that are better for your specific needs and have an understanding of what claims are common within your industry. They may also provide ways to mitigate risks associated with general liability insurance, so you don't need more coverage than necessary.
- 4
Compare multiple options through different means
You can judge which insurance option suits you best by comparing multiple companies. You can also choose multiple ways to compare, like online comparisons or using brokers. This can provide a comprehensive view of pricing.
What Does General Liability Insurance Cover and How Does It Work?
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General liability insurance coverage consists of two parts: per occurrence and aggregate limits. Per occurrence refers to the maximum a single claim can go up to, while the aggregate limit is the total coverage you can get per year. In terms of covered items, this type of policy includes the following:
Bodily injuries or property damage on business property
Legal fees for bodily injury or property damage that your company may be responsible for
Damages to leased or rented business property
Bodily injury or property damage caused by your product or service
Libel, slander, or reputational harm legal defense
Legal fees for copyright infringement accusations
Is General Liability Insurance Required in Illinois?
Like in most states, general liability insurance isn't expressly required by state law and instead varies by your industry. However, you may need general liability insurance if you are looking to apply for a professional license, sign a contract with a larger company, or sign an office lease. While not an exhaustive list, the following industries tend to fall into these categories:
- Medical
- Accounting
- Real estate
- Insurance
- Contracting
- Engineering
- Marketing
- Law
- Consulting
- Media/Communications
How Much General Liability Insurance Do I Need?
Most small businesses will only need a standard policy with $1 million of protection per occurrence and a $2 million limit per year. Your particular industry's risks and the size of your operation may require a larger coverage limit than standard.
WHO MAY NEED MORE COVERAGE
When it comes to protecting your business, understanding the risks associated with your industry is key. Certain sectors, like health services, construction and retail, often face the costliest insurance claims. If your company is part of these groups, it’s smart to think about increasing your insurance protection.
Best General Liability Insurance in Illinois: Bottom Line
Overall, the best general liability insurance companies in Illinois are Nationwide, The Hartford and NEXT. We recommend comparing around yourself and getting plenty of quotes to ensure you get the best deal possible.
General Liability Insurance in Illinois: FAQ
Below, we address frequently asked questions regarding general liability insurance in Illinois:
Which company has the best general liability insurance in Illinois?
MoneyGeek's top choice for general liability insurance in Illinois is Nationwide, which earned an overall score of 96 out of 100. However, the ideal insurance for you depends on various details, including your business size, number of employees, and specific coverage requirements.
Which company has the cheapest general liability insurance in Illinois?
For sole proprietors, Thimble offers the most affordable coverage in Illinois with rates starting at $24 per month ($288 per year). For LLCs with employees, NEXT provides the cheapest option at $31 per month ($372 per year).
Does Illinois require businesses to have general liability insurance?
Illinois does not mandate general liability insurance for businesses, but getting coverage is a prudent decision to protect against third-party claims.
How We Chose the Best General Liability Insurance Providers in Illinois
We broke down our scores into these categories and weights:
- LLC cost (55% of score)
- Sole proprietor cost (5% of score)
- Customer satisfaction (25% of score)
- Financial strength (10% of score)
- Quote process time (5% of score)
For all business insurance companies, we assumed software development industry LLCs with 20 employees. We based customer satisfaction and financial strength scores on NAIC and AM Best ratings. Quote process scores came from our MoneyGeek experts' personal experiences.
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.