What Directors and Officers (D&O) Insurance Requirements Apply in Illinois?

Illinois permits indemnification of corporate leaders under different standards for third-party and derivative proceedings; if a corporation indemnifies or advances expenses for a director or officer in a derivative matter, it must report that to shareholders before or with notice of the next shareholder meeting. These are Illinois business-corporation rules; identify each insured entity’s form and incorporation jurisdiction.

What Is D&O Insurance?

D&O insurance can help pay covered defense costs and losses from claims against company leaders over management decisions. If your organization has a board or executives, check whether the company itself is insured and whether legal bills reduce the limit. Read the national Directors and officers guide.

What Should You Watch for With D&O Insurance in Illinois?

Derivative Indemnity Must Be Reported
Under 805 ILCS 5/8.75(h), indemnification or an advance to a director or officer under subsection (b) must be reported in writing to shareholders with or before notice of the next shareholder meeting. Confirm governance records track this separately from ordinary claims. ¹
Third-Party Indemnity Has a Good-Faith Test
Section 8.75(a) requires good faith and a reasonable belief the conduct was in or not opposed to the corporation’s interests; criminal matters add a no-reasonable-cause-to-believe-unlawful test. Ask how the policy responds when the company cannot indemnify. ¹
Insurance Authority Is Broader Than Indemnity Power
Illinois § 8.75(g) permits a corporation to insure a leader against liability whether or not the corporation could indemnify that person. This authority does not promise a policy will cover a particular loss; review the actual policy terms and exclusions. ²
Confirm the Entity Form
Section 8.75 is part of the Business Corporation Act. If an insured entity is an Illinois not-for-profit corporation, compare its separate Not For Profit Corporation Act indemnification provision rather than applying § 8.75 automatically. ³

Which D&O Insurance Providers Have Illinois License Records?

These providers publish a national listing for Directors and officers; the license records below name the licensed entities and roles. 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.

Coalition
Insurance producer, Surplus-lines broker · checked 2026-09-28
Coalition Insurance Solutions, Inc.
Coalition’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
Coalition offers directors and officers liability through its executive-risks product for private and nonprofit US organizations.
Corgi
Insurance producer · checked 2026-09-28
Corgi Insurance Services, Inc.
Corgi’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
Corgi lists directors and officers insurance among its business insurance offerings.
Risklytics
Insurance producer · checked 2026-09-28
Risklytics, Inc.
Risklytics’ licensing page lists its Massachusetts resident agency license plus state license records in Arizona, Colorado, Illinois, Indiana, New Jersey, Ohio, Texas and Washington; it identifies the NPN record date as September 10, 2026. This list is company-published and not a product availability map. ¹⁸
Risklytics arranges directors and officers liability insurance for robotics, hardware and AI businesses.
TechInsurance
Insurance producer · checked 2026-09-28
Specialty Program Group LLC
TechInsurance’s current licensing page names Specialty Program Group LLC / SPG Insurance Solutions and lists state license numbers, but labels Rhode Island “Individual licenses” rather than identifying a license for the named agency. RI is omitted because this disclosure does not establish agency authority there; this is a search limitation, not an assertion that the company is unlicensed. The remaining state entries are company-reported and are not an insurance product availability map. ¹⁹
TechInsurance arranges directors and officers liability insurance for small businesses.
Vouch
Insurance producer, Surplus-lines broker · checked 2026-09-28
Vouch Specialty Insurance Services, LLC
Vouch’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
Vouch lists directors and officers insurance in its technology-company programs.

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

Website: Regulator website
License lookup: Search licensed producers
Complaints: File a complaint
Phone: (866) 445-5364

Surplus-Lines Tax and Stamping Office in Illinois

Reported tax rate. 3.5% of taxable premium plus a 0.04% stamping fee; separate 1% fire marshal tax on taxable fire premium ^8,^7,^11,^12,⁹

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.

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

What Should You Ask Before Buying D&O Insurance in Illinois?

Does the quote protect leaders when Illinois law or our corporate documents do not allow company indemnification?
Who tracks written shareholder reports when the company indemnifies or advances expenses for a derivative claim?
Does the policy distinguish insured-person coverage from reimbursement to the corporation?

D&O Insurance in Illinois: Frequently Asked Questions

Does Illinois require business corporations to buy D&O insurance?

Section 8.75 authorizes insurance but does not itself require corporations generally to buy it. Check separate licensing, financing, or contract obligations that apply to your business. ²

Must Illinois corporations tell shareholders about derivative indemnification?

Yes. If a corporation indemnifies or advances expenses to a director or officer under § 8.75(b), it must report the action in writing with or before notice of the next shareholder meeting. ¹

Sources for D&O Insurance in Illinois

1
Illinois Business Corporation Act § 8.75. Illinois General Assembly; 805 ILCS 5/8.75(a)–(b), (h), indemnification standards and shareholder reporting. Accessed 2026-09-28.
2
Illinois Business Corporation Act § 8.75. Illinois General Assembly; 805 ILCS 5/8.75(g), insurance authority whether or not indemnification is permitted. Accessed 2026-09-28.
3
Illinois Not For Profit Corporation Act § 108.75. Illinois General Assembly; 805 ILCS 105/108.75, indemnification of directors, officers, employees, and agents. 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
Agent Lookup. Illinois Department of Insurance; Department page explains use of Illinois SBS Lookup for agents, brokers, and business entities; Department home provides company license lookup. Accessed 2026-09-28.
7
Calculating & Remitting Taxes: Surplus Line Tax. Surplus Line Association of Illinois; Current surplus-line tax applicability and rate. Accessed 2026-09-28.
8
215 ILCS 5/445: Surplus line. Illinois General Assembly; Subsections (3)(a), (12): tax and code applicability. Accessed 2026-09-28.
9
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.
10
Illinois FAIR Plan Association. Illinois FAIR Plan Association; Plan overview and current eligibility information. Accessed 2026-09-28.
11
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.
12
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.
13
Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
14
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.
15
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.
16
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.
17
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.
18
About Risklytics. Risklytics; What we do; Who we insure; Licensing; Agency licenses table dated 2026-09-10. Accessed 2026-09-16.
19
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.
20
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.

What Directors and Officers (D&O) Insurance Requirements Apply in Illinois?

What Is D&O Insurance?

What Should You Watch for With D&O Insurance in Illinois?

Derivative Indemnity Must Be Reported

Third-Party Indemnity Has a Good-Faith Test

Insurance Authority Is Broader Than Indemnity Power

Confirm the Entity Form

Which D&O Insurance Providers Have Illinois License Records?

Coalition

Corgi

Risklytics

TechInsurance

Vouch