Business Insurance

Business Insurance Basics

people meeting, planning and making notesThe term business insurance refers to the insurance coverage that protects businesses against operational losses. Business insurance policies are specifically designed for the protection of the business. This protection includes its owners, managers and workers as well as its assets such as its plant, property and equipment.

The terms and provisions where premiums, coverage and limits are concerned will significantly differ from other types of insurance policies such as farm insurance and homeowners insurance.

Keep in mind that business insurance is a broad definition, so it must be broken down into the main types of coverage, many of which are discussed below. Most, if not all, businesses will secure two or more of the following insurance plans depending on several factors. These factors include types of risks, organizational goals, and available budget as well as legal compliance.

Property Insurance

This insures against losses and/or damages to the physical structures such as factories, warehouses and offices including their contents. The structures can be owned or leased. The coverage itself can be specific (i.e., just for fire or tornado) or multi-peril in nature (i.e., all types of natural disasters mentioned in the contract).

Casualty Insurance

This insures against losses or damages to the business itself. In many cases, the property and casualty insurance coverage is combined into a single business insurance policy.

Liability Insurance

When a business is sued by third-parties for its negligence, the liability insurance provides protection against the possible financial losses incurred by the lawsuit. The negligence can be committed by one of the employees or by the business in general.

Workers' Compensation

To learn more about this insurance coverage, please visit our Workers' Compensation page.

Business Interruption

This insurance policy insures against the possible losses to the cash flow and profit of the organization in case of business interruptions. Keep in mind that the causes for business interruptions will be defined in the insurance contract, which is also true for the limits of compensation.

Other Business Insurance Policies

Other business insurance policies include health insurance, life and disability insurance, and scripted insurance.

We are here to serve all types business insurance needs. We are endorsed by the IL Auto Parts & Services Association and give big discounts to policies for their Members. We also write for Auto Service Centers, Auto Parts Stores, Contractors, Restaurants and Taverns.


  • "I have been a customer of Farley Insurance since 1982. When I've had a claim they have been great to work with. They go to bat for me every year for the best rates which keeps me coming back. Very appreciative of Kent and his staff."

    — Penny

  • "My family has been with Farley Insurance Agency for 28 years. We enjoy their professional service they provide for our everyday needs as well as at claim time. Our claims have always been paid in a timely manner and their staff is very knowledgeable and helpful. They are truly 'only a call away'!"

    — Terri

  • "In November of 2015, we had a major fire which destroyed everything. We reopened in April of 2016 thanks to Farley Insurance. We could not have asked for better or more pleasant people to work with. They made everything run smoothly. We would recommend them to anyone. Thank you Farley Insurance!"

    — Nick

  • "We have used Farley Insurance Agency for a few years with a variety of business and personal coverage. Tim and his office has always been prompt and professional when dealing with any inquiries or issues that arise. We have found Tim to be competitive and has saved us money on insurance costs."

    — Mike

  • "Farley Insurance Agency has been Rex Vault's insurance provider for many years now. Both Tim and Chad have been excellent to work with. Their product knowledge is outstanding and their experience is always helpful."

    — Mark

  • "Tim Farley has been our agent for several years and we have been happy with his service and find him and his staff very helpful."

    "Insurance in the construction industry is competitive and we feel very comfortable with using the Farley agency."

    — Scott

  • "Farley Insurance Agency has been provides the business insurance for the City of Newton. Their product knowledge is outstanding and their experience is always helpful."

    — Mark