Illinois Retail Store Insurance (IL) – policies and cost

Retail store Liability Insurance in Illinois  – (IL), is an important type of insurance to have for any person who conducts business selling to the public from local shops.

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If you’re a retailer, you should buy retail store liability insurance, and here’s why! 

What actions do retail stores do in Illinois? 

But first, a retail store should not to be confused with a shop. There are many workshops that include the word shop in their name, like repair shop that are not selling products, but provide work to the public.

The latter usually has some kind of registered license, and so they need to buy their own liability insurance in IL. A first-line supervisor in Illinois is likely to be younger than the average for the state, and to earn less than the average for Illinois.

Retailers deal in public to sell merchandise to other businesses for personal consumption and so need Small Business insurance in Illinois to cover all possible risks.

Retail Store Insurance in Illinois

General statistics

About 6% of the total labor force in Illinois was engaged in the retail sector in 2020. 

Interesting fact – workers in IL are ten time more likely to find jobs in general merchandise stores than in appliance stores.

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What are the standard forms of retail store insurance policy types in Illinois? 

General liability insurance.

The average general liability policy for retail stores in Illinois covers a total of $2 million for the whole year, with a boundary of $1 million for a single event.

Professional liability insurance

Almost all retailers in Illinois will see the need for a policy of at least $10000, and many choose much more when their own kind of business warrants it. In some cases, the insurance company in Illinois gives an incentive to include a deductible of a few hundred dollars, to stop the nuisance of ill-considered claims.

Product liability insurance

The recommended level of cover in IL, is calculated on the type of products that the store markets as well as the value of sales.

Commercial vehicle insurance

Immediately after goods leave your premises in Illinois, your standard insurance stops cover. If you are doing your own distribution with a van, then you must have specific policy giving you commercial vehicle insurance in Illinois for the vehicle, the driver and the contents.

Commercial insurance

Retail business depends on stock and a physical shop. This means committing your money into premises and goods, and you cannot afford to let this burn. Commercial insurance in Illinois is especially designed to take into account the occurrences that can end up costing you a lot of money.

Property insurance

Illinois carries special risks when it comes to buildings, and any business must take out the appropriate cover to protect property and contents. 

As well, the possibility of floods is increasing because of climate change, so every shop owner should take care to get all the protection necessary to cover even the most remote possibility.

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Business Income insurance

There has been a history of ups-and-downs in IL, that have hit retail businesses hard. It is clever to get proper protection in place before such a calamity occurs, rather than to expect that you can never be hurt.

Average costs of these types of insurance in Illinois

Although every business is unique, there are enough examples of usual quotes from insurance companies in Illinois for us to give rough guidelines. Of course, you should always check with an agent of what’s relevant for your business.

The below list is for annual premiums for the main types of insurance retailers need in Illinois.

Types of insurance Price range
Business income insurance $496 – $1097
Commercial insurance $941 – $2589
General liability insurance $557 – $1344
Property insurance $1256 – $3432
Public liability insurance $344 – $628
Commercial vehicle insurance $1769 – $3335

Cost of insurance in Illinois depends on many different factors

Please take note that the above figures are based on averages for small retail businesses. The size and location of your business in Illinois can have a big impact on the cost, and also the type of trade and inventory will.

For Example – a liquor store on the high street has a much boosted risk of theft than a babywear shop conducting Illinois retail sales that is located inside a large mall, so the costs of the insurance will be very different.

FAQ section:

Do you need business insurance in Illinois?

Almost all retailers in IL, will have to have at least some insurance, covering laws because they are dealing with the public, and also probably to qualify to be granted to register with a business license in Illinois . As well, insurance in Illinois is especially designed to take into account the occurrences that can end up costing you a lot of money.

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What is considered a retail store and what is not?

Some businesses use the title “shop” in their definition, but don’t really act as retailers.

For example:

  • dram shop
  • tire shop
  • machine shop
  • repair shop
  • auto repair shop
  • coffee shop
  • auto body shop
  • coffee shop
  • mechanic shop
  • tattoo shop
  • bike shop
  • body shop
  • motorcycle repair shop

A better wording would be if the business sells several of the following to the public:

  • Specialty products for narrow sectors, like florists, jewellers.
  • Entertainment, communication, and technology goods.
  • Apparel like babywear, kids, women’s and men’s clothing.
  • Food and beverages as in supermarkets, liquor stores, fruit & vegetable grocers and specialty food stores
  • Books, newspapers, magazines and office supplies.
  • Home living and homeware, trade, and gardening goods.
  • Sport, recreation, and leisure goods.
  • General retail as in department stores and clothing retailers.

Where to find the right insurance?

In every community in Illinois you will be able to find a qualified insurance agent or broker that can advise you on your best options. Most independent brokers and agents work six days a week, with the following opening times.

Opening Hours:
Monday – 8:30 AM – 6:30 PM
Thursday – 8:30 AM – 6:30 PM
Wednesday – 8:30 AM – 6:30 PM
Thursday – 8:30 AM – 6:30 PM
Friday – 8:30 AM – 6:30 PM
Saturday – 7:30 AM – 1:30 PM
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