Illinois Commercial Property Insurance

How to find a local expert

Written by Candace Jenkins
Written by Candace Jenkins

Candace Jenkins is a licensed insurance advisor with over a decade of experience. She is also a writer and loves to write on all things insurance. Candace writes for on a continuous basis and is here with the facts about all your insurance inquiries.

Reviewer: Jeffrey Green Reviewed by Jeffrey Green
Reviewer: Jeffrey Green
Reviewed by Jeffrey Green

Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career.  He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.

Illinois Commercial Property Insurance

As of 2019, Illinois had 24.36 million square feet in industrial properties. While your commercial property may not be industrial, you'll still need the right policy. Your coverage will depend on the type of structure you own and more. 

An independent insurance agent can help find commercial property insurance for a fair price. They do the shopping for you so that you can save time. Connect with a local expert to get quotes for your investment.

What Does Commercial Property Insurance Cover?

Commercial property insurance in Illinois will cover a variety of items. The type of building you own and how it's occupied will play a role as well. Take a look at what is covered under a commercial property policy in Illinois:

  • Commercial equipment: This can be anything from machinery to forklifts. Coverage will be for actual cash value or replacement cost. A deductible usually applies.
  • Commercial structure: This covers the actual building you own up to the dwelling amount listed. A replacement cost estimator is used to determine how much it would cost to repair or replace your building. Coverage can be for actual cash value, replacement cost, or depreciated value.
  • Commercial belongings: This will cover any business belongings, such as furniture, office supplies, and more. It will be for replacement cost, actual cash value, or depreciated value.  

Sometimes inventory can be included under your commercial property policy as well. Important papers and document coverage is another type of endorsement you can add depending on the carrier. Last, some policies will allow coverage for customer property while on your premises. 

Who Needs Commercial Property Insurance?

Commercial property insurance is needed by many. Illinois won't require you to obtain coverage in most cases, but your lenders will. If you have a mortgage or lienholder, you'll be responsible for providing evidence of insurance. Take a look at who may want coverage for their commercial property:

  • Business owners
  • Commercial property owners
  • If you have commercial equipment
  • If you have a property titled in a business name

All of these are good examples of who might need to have commercial property coverage in Illinois. While business insurance may not be mandatory, it is necessary. To avoid financial ruin, bankruptcy, judgments, or worse, consider obtaining adequate coverage.

Commercial Property Insurance Cost

Your commercial property insurance costs in Illinois will vary depending on a number of items. Carriers look at numerous pieces of the puzzle when assigning premiums. Check out the risk factors insurance companies use in Illinois:

  • Local weather
  • Claims history
  • Type of property insured
  • Square footage
  • Value or replacement cost of property
  • If you rent out the commercial property to others
  • Your insurance score
  • If you have other policies in place

In Illinois, $16,998,439,000 was paid for commercial insurance claims in 2019 alone. Some of those claims were due to commercial property losses. While your personal or business data affects your costs, so do outside factors. Weather is a major concern for any property owner. since it could cause damage to your commercial property. 

Top 5 weather-related risks in Illinois:

  1. Severe storms and lightning damage
  2. Flooding and water damage
  3. Tornadoes
  4. Heavy snow
  5. Burglary and other property crimes

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How Much Commercial Property Insurance Do I Need?

Your commercial property insurance amounts will be customized to your assets. The amount of insurance can be figured out in a variety of ways. While you won't know exactly all that's needed until you get quotes, you can see how the carriers will insure your property. Take a look at the different types of coverage given to commercial property owners:

  • Replacement cost: This will pay for your commercial property's current value at the time of loss in full. When you have a claim, it will restore or replace your property to like kind and quality. 
  • Actual cash value: This coverage is equal to replacement cost minus depreciation. If your commercial property is damaged, aged, or has natural wear and tear, this will be subtracted from the replacement cost amount. 
  • Functional replacement cost: This meets between actual cash value and replacement cost. It will replace or repair your commercial property with material that is less costly but just as functional. 

Does Commercial General Liability Insurance Cover Property Damage?

If you're a business owner in Illinois, your commercial property policy is separate from your general liability insurance. There are some instances where they are included together, but they are still different coverages. Take a look at the facts:

  • General liability insurance: Pays for a lawsuit arising out of bodily injury, property damage, or slander. This is usually the most accessed business insurance you'll own. 
  • Commercial property insurance: Pays for the replacement or repair of a commercial structure, belongings, or equipment. This does not have its own liability limit but is in addition to your general liability coverage.
  • Commercial package policy: This is just how it sounds, a package. This package will combine general liability, commercial property, and more ancillary coverages together on one policy. Typically, lower premiums and more robust coverage options will be included in a commercial package. 

How an Illinois Independent Agent Can Help

When you're searching for the best commercial property insurance, an Illinois adviser can help. To ensure you're getting the right coverages, don't go it alone. Licensed professionals are willing to help with your property needs. 

An independent insurance agent has access to several carrier options so you can save. They work on your behalf at no cost to your business, giving you some time back. Connect with a local expert on TrustedChoice to get started.

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