Frequently Asked Questions About
Commercial General Liability Insurance
How much does small business insurance cost?
Costs can vary widely based on industry and are also determined by zip code and often payroll and/or gross sales. Request a free quote to get an exact number. (read more)
What kind of business insurance do I need?
Most business owners need General Liability Insurance at the very least. If you have any non-owner employees, you will need workers compensation insurance too.
What is a Certificate of Insurance?
A Certificate of Insurance is proof of coverage. It lists the type and amount of liability coverage you have and other policy information when a third party requests it. (read more)
Is business insurance tax deductible?
Yes. you can deduct the cost of commercial insurance premiums. The IRS considers insurance a cost of doing business as long it benefits the business & serves a business purpose.
Employment Agency Insurance Illinois
Employment Agency Insurance Illinois. Employment agencies match job openings with qualified job seekers. They may be compensated for their services by the company with the job opening or by the person seeking employment, on either a commission or flat fee basis. Services commonly offered are placing a worker into a permanent position, finding a specific type of worker for a customer company, providing employers with short-term or temporary help, or providing workers with job counseling.
The worker seeking employment, the company seeking the worker and the employment agency must all fully understand the terms and conditions of the employment arrangement. The contractual agreement should define who is obligated and responsible for providing workers compensation coverage, who pays the fee for the employment arrangement, who handles payment to the employee, who accounts for taxes and other mandatory deductions, and who provides miscellaneous employee benefits, if any, such as health insurance or a 401(k) savings plan.
Finding the right employees is an important part of building a successful business. As an staffing agency, your are responsible for the listing of job vacancies and referring applicants for employment with other firms. The persons referred to these other companies are not employees of the employment agency.
Although this might seem quite simple, many risks come along with operating this type of business. With the risks involved, it is critical for you to get the right employment agency insurance Illinois to protect your business. In this post, we'll take a look at how you can get the best insurance for your staffing firm.
Employment agency insurance Illinois protects your staffing firm from lawsuits with rates as low as $87/mo. Get a fast quote and your certificate of insurance now.
Risks That Come With Operating Your Employment Agency
The protection of your employment agency is necessary whether you rent or lease office space. While operating your business, you must have the correct employment agency insurance Illinois policies in place to protect your business from the risks that come with staffing. Some of the risk you might face include:
- Fire, smoke, weather or other events that can cause damage to your business property
- Slips and falls or any other injury that can happen to clients or employees at your office
- Lawsuits against your business
These are just some of the risks you might face while operating your business that make it necessary for you to have insurance.
Staffing Agency Insurance Basics
Here are some of the primary employment agency insurance Illinois policies you can get to keep your staffing agency covered:
Commercial General Liability Insurance - This insurance provides you with protection when a lawsuit is made against your business. Commercial general liability insurance covers any injury or damage you cause to a third party or their property. Whether this is medical expenses or replacing damaged property, having this coverage provide you with the help you need.
Commercial Property Insurance - With this employment agency insurance Illinois, you have protection for the buildings and the contents in them that you use for the operation of your business. There is no way to predict what can happen to your staffing agency but you can rest knowing that with this insurance you are protected. With most business property insurance you get business interruption protection. This comes in handy when there is a period that your business is unable to operate as covers the loss of income that a business suffers after a disaster.
Professional Liability Insurance for Employment Agencies - This insurance is also known as errors and omissions insurance provides you with coverage if a client decides to sue yours for negligence on your part. Some of the things that you client can sue you for include:
- Alleged errors
- Actual errors
- Breach of duty
Basically, if you fail to do the proper research and you cause damage to your client's business, then you can be sued. Remember it is your job to get the right person for the job for your customer. Failing to do this could result in your business being sued.
IL Commercial Auto Liability Insurance - For most businesses having a vehicle is critical. With IL commercial auto liability insurance you can keep the vehicles that you use for your business protected. If a vehicle used for your business causes damage to a third party, you will be protected if you have this insurance.
Workers Compensation - Protecting your workers is important... so important that having IL workers comp is required in most states for any non-owner or partner employees. When you have workers' compensation, you won't have to worry if your employees get injured while on the job. If they are injured, and they need to have medical attention for the injury then having workers' compensation coverage will give them the help they need.
Cyber Liability Insurance - In the staffing business it is a sure thing that you will be handling lots of confidential information. This means that you need data protection. Although you may have protection there can still be a chance of your information being hacked. If you are ever hacked, cyber liability insurance to keep your business covered. When there is a breach of the information this will help you with the costs.
IL Employment Placement Agencies' Risks & Exposures
Property exposures are generally limited to that of an office. Ignition sources include electrical wiring, heating and air conditioning systems, wear, and overheating of equipment. Computers and other electronic equipment may be targets for theft.
Crime exposure comes from employee dishonesty. Hazards increase without proper background checks, monitoring procedures, and securing of all records to prevent unauthorized access. All job duties, such as ordering, billing and disbursing should be separate and reconciled on a regular basis. Audits should be performed at least annually.
Inland marine exposures consist of accounts receivable if the agency offers credit, computers, and valuable papers and records for client companies' and job seekers' information. Duplicates should be made and kept in an off-site backup facility for easy reproduction following a loss.
Premises liability exposure is moderate due to the number of clients visiting the premises. The waiting area, interview, and conference rooms must be well lighted with floor covering in good condition. Exits must be sufficient in number, be well marked, and have backup lighting in case of power failure. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls.
Personal injury liability exposures are high due to the amount of confidential information obtained from job seekers. The agency must take great care to maintain confidentiality when obtaining and releasing information regarding workers and employers.
Professional liability exposure is high. The background, training, and licensing of the agency's own employees should be verified. Employees must be matched with the needs of clients. Misrepresentation by either party may result in allegations of negligence.
Workers compensation exposures are generally limited to office-type hazards. Potential injuries include eyestrain, neck strain, carpal tunnel syndrome, and similar cumulative trauma injuries that can be reduced through ergonomically designed workstations. If workers are leased or rented out, the exposure increases as the company has little control over the client's work premises or hazards. The employment contract should specify whether the employment agency or the client company provides workers compensation coverage.
Business auto exposure may be limited to hired and non-owned (HNOA). The exposure increases if the agency offers shuttles for temporary workers, transport to job interviews, or if employees use their own vehicles for agency business. All drivers must have appropriate licenses and acceptable MVRs. Vehicles must be maintained and records kept in a central location. If the registry provides vehicles to employees, there should be written procedures regarding the private use of these vehicles by others.
IL Employment Agency Insurance
Speaking with an experienced IL licensed insurance agent will help you to figure out what you need protection for in your staffing firm. When you do this, you can find the protection you need and keep your business protected from the risks it faces.
Illinois Economic Data & Business Insurance Requirements
For moguls who are thinking about conducting business-related affairs in Illinois, it's important to have an understanding of the state's economic outlook. It's also a wise idea to familiarize yourself with the regulations regarding IL commercial insurance.
Here we provide some insight regarding the data that pertains to economy of Illinois. We also provide a brief overview about the types of commercial insurance coverage business owners are required to invest in, or should invest in, even if it isn't mandatory.
Business Economic Trends In The State Of Illinois
According to several reports that compile the economic data for each of the 50 states and compare that information to the national average, Illinois isn't in the best position. While there has been some improvement, the gains have only been slight. Income and employment rates have risen, and the housing market has increases; however, the gains in these areas have been minimal, especially when compared to the gains that other states have experienced.
While the unemployment rate has improved, falling to 4.8 percent in 2017 after it was stuck at a rate of almost 6 percent in 2016 and 2015, it appears that in reality, the IL labor force and employment gains are contradicting. In 2019, tens of thousands of people fell out of the state's labor force.
Looking to the future, it is predicted that while the employment rate in Illinois will grow, the rate at which it will grow will be much lower than the national average. Currently the projected annual job growth of the state is .5 percent. Following are some of the largest industries in IL.
- Service Industries
Illinois Commercial Insurance Regulations
The Illinois Department of Insurance regulates insurance in IL. Businesses are required to carry workers compensation insurance. Workers comp is mandatory for any business that employs either an hourly or a salaried workforce, even if that workforce is just one person. Organizations are also required to carry IL commercial auto insurance if they use vehicles for any business-related reasons, such as deliveries, transport, or client visits.
General liability insurance is not required, nor is commercial property insurance; however, it is a wise idea for companies to invest in this type of coverage, as it will safeguard from lawsuits or losses that their properties could sustain.
Additional Resources For Miscellaneous & Non-Profit Insurance
Find informative articles on miscellaneous businesses including the types of commercial insurance they need, costs and other considerations.
- Agriculture, Forestry, Fishing & Hunting
- Assisted Living Facilities
- Employment / Staffing Agency
- Engraving Business
- Facility Support Services
- Mail Order
- Oil And Gas Lease
- Parking Lot
- Personal Concierge
- Photofinishing Lab
- Private Water Districts
- Process Server
- Public Liability
- RV Parks & Campgrounds
- Unmanned Aerial Vehicles (UAV) Drone
- Wedding Planner
An insurance contract is an agreement where one party obligates itself to make good the financial loss or damage sustained by a second party when a designated event occurs. The event must be fortuitous and happen by accident. The named insured must have insurable interest at the time of loss. One final point is that in order for any contract to be considered insurance, there must be a risk of loss.
Fortuitous Event - An occurrence largely beyond the control of any involved party; happening by chance; accidental; for example: fire, lightning, windstorm, explosion or flood.
Insurable Interest - In order to recover from a loss to property, the holder must have an insurable interest in the property at the time of the event or occurrence. An insurable interest is any right, title or interest in property where the holder of that right, title or interest sustains financial loss if the property is damaged or destroyed. Any lawful and substantial economic interest in the safety or preservation of the property from loss, destruction or damage also constitutes an insurable interest.
An entity does not have to be the property owner to have an insurable interest in it. Examples include, but are not limited to, mortgagees, trustees, vendors, lessees and bailees. Insurable interest for any entity must exist at the time the loss occurs.
Risk Of Loss - If property could never be destroyed, there is no risk of loss. If property must necessarily disintegrate or be destroyed, there is no risk of loss. Between these two extremes is the exposure of risk that can be insured.
Request a free Employment Agency Insurance Illinois quote in Addison, Algonquin, Alton, Arlington Heights, Aurora, Bartlett, Batavia, Belleville, Belvidere, Berwyn, Bloomingdale, Bloomington, Blue Island, Bolingbrook, Buffalo Grove, Burbank, Calumet, Carbondale, Carol Stream, Carpentersville, Champaign, Charleston, Chicago Heights, Chicago, Cicero town, Collinsville, Crest Hill, Crystal Lake, Danville, Darien, DeKalb, Decatur, Des Plaines, Dolton, Downers Grove, East Moline, East Peoria, East St. Louis, Edwardsville, Elgin, Elk Grove, Elmhurst, Elmwood Park, Evanston, Freeport, Galesburg, Geneva, Glen Ellyn, Glendale Heights, Glenview, Granite, Grayslake, Gurnee, Hanover Park, Harvey, Highland Park, Hoffman Estates, Homer Glen, Huntley, Joliet, Kankakee, Lake in the Hills, Lansing, Libertyville, Lisle, Lockport, Lombard, Loves Park, Machesney Park, Maywood, McHenry, Melrose Park, Moline, Morton Grove, Mount Prospect, Mundelein, Naperville, New Lenox, Niles, Normal town, North Chicago, Northbrook, O'Fallon, Oak Forest, Oak Lawn, Oak Park, Orland Park, Oswego, Palatine, Park Forest, Park Ridge, Pekin, Peoria, Plainfield, Quincy, Rock Island, Rockford, Rolling Meadows, Romeoville, Roselle, Round Lake Beach, Schaumburg, Skokie, South Elgin, South Holland, Springfield, St. Charles, Streamwood, Tinley Park, Urbana, Vernon Hills, Villa Park, Waukegan, West Chicago, Westmont, Wheaton, Wheeling, Wilmette, Woodridge, Woodstock, Zion and all other cities in IL - The Prairie State.
Quotes from leading small business insurance carriers including: ACE, AmTrust, Chubb, Cincinnati, CNA, Colony, Employers, Evanston, Fireman's, Foremost, Guard, Hanover, Hiscox, Liberty Mutual, LLoyd's of London, Markel, MSA, Nationwide, Penn America, Philadelphia, Prime, Progressive, Scottsdale, The Hartford, Travelers, USLI, Utica First, Western World, Zurich & others.