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Illinois Crime Insurance Guide

Illinois businesses that give employees or retained contractors check-processing responsibility should compare employee-dishonesty and forgery terms against that workflow. Illinois’s Uniform Commercial Code treats an entrusted worker’s fraudulent indorsement as effective in specified circumstances and requires prompt review of paid items; banks must retain or be able to furnish legible copies for seven years. These commercial-law rules do not prove insurance coverage, so ask for the policy language covering checks, electronic transfers, and social-engineering losses. 1,2,3

What Is Crime?

Crime insurance can help reimburse specified business losses from theft and fraud, including employee theft and forgery. Compare those protections separately and ask whether a payment sent after an impersonation scam is covered. Read the national Crime guide.

What to Watch for in Illinois

  • Include retained contractors in the control map

    Under 810 ILCS 5/3-405, employee includes an independent contractor and an employee of a retained contractor. The section focuses on entrusted responsibility for instruments, including processing incoming checks or preparing checks for issue. Ask how the quote defines covered employees and whether a vendor that handles receivables or disbursements is addressed. 1

  • Preserve paid-item records and review them promptly

    Illinois law requires prompt examination of bank statements or items for unauthorized signatures and alterations. When the bank does not return the items, § 4-406 requires it to retain them or maintain the ability to furnish legible copies for seven years. Assign a reviewer and preserve available images, statements, and approval records; do not confuse this bank-record rule with an insurer’s proof or notice requirements. 2

  • Separate check forgery from a deceived wire payment

    A vendor email that redirects a wire is a different transaction from a forged check. The FBI describes compromised email and fraudulent payment instructions as business-email compromise and recommends immediate bank contact. Ask for the quote’s specific social-engineering or funds-transfer wording rather than assuming a check provision responds. 3

Who Regulates Insurance in Illinois

Illinois Department of Insurance

The Department licenses and oversees insurers and insurance producers doing business in Illinois, reviews regulated insurance activity, and investigates complaints about coverage, claims, premiums, and sales. 4,6,5

Surplus-lines tax and stamping office

Reported tax rate: 3.5% of taxable premium plus a 0.04% stamping fee; separate 1% fire marshal tax on taxable fire premium When Illinois is the insured’s home state, the broker reports and remits a 3.5% tax on gross taxable surplus-line premium less returned taxable premium. The separate SLAI stamping fee is 0.04% for policies effective on or after January 1, 2023; a 1% fire marshal tax also applies to taxable fire premium. 8,7,11,12,9

Surplus Line Association of Illinois

  • Illinois guaranty fund limits: For covered claims against a member insurer, the Illinois Insurance Guaranty Fund generally caps its obligation at $500,000 per claim; workers’ compensation claims are excepted from that dollar cap. This fund does not protect policies issued by nonadmitted surplus-lines insurers. The net-worth exclusions apply to covered claims against member insurers. 9
  • Illinois FAIR Plan: If you cannot obtain basic property coverage in the voluntary market, the Illinois FAIR Plan offers a residual-market option for eligible property. Check its current eligibility and coverage limits before relying on it for a commercial location. 10

Providers With Documented State Licenses

These providers publish a national listing for Crime; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Illinois. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • CoalitionCoalition Insurance Solutions, Inc.Insurance producer, Surplus-lines broker · checked 2026-09-28Coalition’s license page lists producer and surplus-lines licenses for Coalition Insurance Solutions, Inc. in all 50 states and the District of Columbia. The page separately lists insurers; this record covers the brokerage entity only. 14
  • CorgiCorgi Insurance Services, Inc.Insurance producer · checked 2026-09-28Corgi’s company producer-license table lists 50 jurisdictions: 49 states and the District of Columbia, including DC license 3003091619. New Mexico does not appear in the table and is not included here; the omission does not establish that Corgi is unlicensed there. The company-reported table has no stated as-of date and does not establish product availability. 15
  • VouchVouch Specialty Insurance Services, LLCInsurance producer, Surplus-lines broker · checked 2026-09-28Vouch’s licenses page, effective January 16, 2025, lists producer licenses in all 50 states and DC. Its separate surplus-lines table includes Idaho number 870820, while a footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses. Because those statements conflict for Idaho, this record keeps Idaho producer-only and does not treat the table number as established agency surplus-lines authority. The page is company-reported and does not establish product availability. 20

Questions to Ask Before You Buy in Illinois

  1. How does the policy define an employee when our check workflow uses an independent contractor, outsourced bookkeeper, or payroll provider?
  2. Which insuring agreement covers forged endorsements or altered checks, and what deductible and limit apply?
  3. Does a payment made by our employee after a spoofed invoice fall within a separate social-engineering or funds-transfer grant? What verification requirements apply?
  4. Who reviews bank statements and check images, and who preserves them for an investigation or insurer notice?

Crime in Illinois: FAQ

Can an Illinois business request a copy of a paid check? 2

Yes. Section 4-406 provides for access to paid items or sufficient identifying information and requires the person retaining items to keep them, or the ability to furnish legible copies, for seven years. Ask your bank how to retrieve the items you need. 2

Does Illinois’s employee-endorsement rule mean a crime insurer must pay? 1

No. Section 3-405 addresses rights and liabilities around negotiable instruments and banks. The policy’s definitions, insuring agreements, exclusions, limits, and conditions determine the insurance question. 1

Crime in Other States

Other Coverage in Illinois

Sources

  1. Illinois Compiled Statutes, 810 ILCS 5, Article 3: Negotiable Instruments. Illinois General Assembly, Legislative Reference Bureau; § 3-405, Employer responsibility for fraudulent indorsement by employee. Accessed 2026-09-28.
  2. Illinois Compiled Statutes, 810 ILCS 5, Article 4: Bank Deposits and Collections. Illinois General Assembly, Legislative Reference Bureau; § 4-406, customer duty to discover and report unauthorized signature or alteration; subsections (a), (b), (c), and (f). Accessed 2026-09-28.
  3. Business Email Compromise. Federal Bureau of Investigation; How BEC scams work; Report BEC. Accessed 2026-09-28.
  4. Illinois Department of Insurance. Illinois Department of Insurance; Official agency homepage and agency information. Accessed 2026-09-28.
  5. File a Complaint. Illinois Department of Insurance; Official insurance complaint intake and consumer phone. Accessed 2026-09-28.
  6. Calculating & Remitting Taxes: Surplus Line Tax. Surplus Line Association of Illinois; Current surplus-line tax applicability and rate. Accessed 2026-09-28.
  7. 215 ILCS 5/445: Surplus line. Illinois General Assembly; Subsections (3)(a), (12): tax and code applicability. Accessed 2026-09-28.
  8. 215 ILCS 5: Illinois Insurance Guaranty Fund. Illinois General Assembly; Article XXXIV: cap, net-worth exclusions, exceptions, and non-admitted insurer exclusion. Accessed 2026-09-28.
  9. Illinois FAIR Plan Association. Illinois FAIR Plan Association; Plan overview and current eligibility information. Accessed 2026-09-28.
  10. Stamping Fees: Fee Calculation. Surplus Line Association of Illinois; Current stamping fee 0.04% of premium for policies effective January 1, 2023 or later; may be passed to insured. Accessed 2026-09-28.
  11. 50 Ill. Adm. Code § 2701.130: Taxes. Illinois Joint Committee on Administrative Rules; Surplus line producer pays 1% fire marshal tax on gross premiums less returned premiums for insurance subject to the Fire Investigation Act. Accessed 2026-09-28.
  12. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  13. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  14. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  15. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  16. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  17. About Risklytics. Risklytics; What we do; Who we insure; Licensing; Agency licenses table dated 2026-09-10. Accessed 2026-09-16.
  18. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  19. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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