The 5 Most Common Business Claims in Illinois —

and How to Prevent Them

Here are the five most frequent business claims in Illinois, based on industry reports and local trends.

1. Slip-and-Fall & Premises Liability Claims

Why It Happens:
With Chicago’s weather extremes — ice in winter, rain and flooding in summer — slip-and-fall claims remain one of the top liabilities for Illinois businesses. Customers, tenants, or employees injured on-site can pursue costly lawsuits.

Prevention Tips:

• Maintain regular snow/ice removal contracts.

• Inspect and document floor conditions daily.

• Install clear signage and adequate lighting in walkways.

• Keep maintenance logs for defense if a claim occurs.

2. Employment Practices Liability (EPLI)

Why It Happens:
Illinois’ evolving legal environment — including the new Pay Transparency Law (effective Jan. 1, 2025) — is fueling more claims tied to wage disputes, discrimination, and harassment. Nonprofits and small businesses are particularly vulnerable because they often lack in-house HR teams.

Prevention Tips:

• Review job postings and update hiring practices now.

• Provide annual harassment and bias training.

• Document all employment decisions (hiring, promotion, termination).

• Consider standalone EPLI coverage if it’s not already in place.

3. Property Damage from Severe Weather

Why It Happens:
Severe convective storms, hail, and flooding are among the most expensive causes of business losses in Cook County. The July 2023 floods were a recent reminder of how devastating extreme rainfall can be.

Prevention Tips:

• Verify flood/sewer backup coverage — these are often excluded.

• Install sump pumps and water detection systems in basements.

• Inspect roofing and drainage annually.

• Create a storm response plan to protect inventory and equipment.

4. Auto Accidents & Commercial Vehicle Liability

Why It Happens:
Businesses with vehicles — from contractors to nonprofits with vans — face risks on congested Chicagoland roads. Distracted driving and high accident rates in Cook County make commercial auto claims frequent and severe.

Prevention Tips:

• Implement driver safety policies (no phone use while driving).

• Run annual motor vehicle record (MVR) checks on employees.

• Install telematics or GPS tracking to monitor risky driving.

• Require regular vehicle inspections and maintenance.

5. Cyberattacks & Data Breaches

Why It Happens:
Small businesses and nonprofits are prime targets for phishing, ransomware, and business email compromise. The FBI’s Chicago office has warned of increasing attacks on local organizations that lack robust IT defenses.

Prevention Tips:

• Require multi-factor authentication (MFA) on all logins.

• Train employees to spot phishing attempts.

• Test and update data backups regularly.

• Review cyber liability coverage to ensure ransomware and regulatory costs are included.

Final Takeaway

Illinois businesses and nonprofits face a wide range of risks, but most claims fall into a few predictable categories. The good news: with the right prevention strategies and insurance coverage, many of these losses can be reduced or avoided entirely.

By addressing these top five claims — slip-and-fall, EPLI, property, auto, and cyber — Chicagoland organizations can position themselves for stability in an increasingly unpredictable risk environment.

Call to Action
Which of these five claims is your business most vulnerable to? Contact us today for a customized coverage and prevention review.

📚 Sources

• Insurance Journal – Midwest claim frequency data (2023–2025)

• Illinois Department of Insurance – Commercial property & liability trends

• FBI Chicago Field Office – Business email compromise warnings (2024–2025)

• American Tort Reform Foundation – Cook County litigation environment rankings

Every business faces risk, but some claims are far more common — and costly — than others. In Illinois, especially in Cook County and surrounding areas, certain types of losses show up repeatedly across industries. By understanding what these claims are and how to prevent them, organizations can lower costs, avoid downtime, and strengthen their insurance programs.