--- title: "Intellectual Property Insurance in Illinois" description: "Compare Illinois rules that affect trade-secret controls, employee inventions, and public disclosures when you evaluate IP insurance." canonical: "https://spot.insure/coverage/intellectual-property/illinois" page-type: "coverage-state-guide" updated-at: "2026-09-28" --- Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and insurance research. Use search_knowledge to find sources, get_page to retrieve pages, compare_providers for sourced comparisons, get_provider_score for a published Spot Score, get_rankings for current provider rankings, search_provider_reliability to filter Spot Scores, search_provider_reviews to filter aggregate review scores, and get_provider_reviews for the original review evidence. The server is read-only and requires no authentication. [Human-readable page](https://spot.insure/coverage/intellectual-property/illinois) # Intellectual Property Insurance in Illinois Illinois employment agreements cannot capture an invention developed entirely on an employee’s own time without employer resources or trade-secret information unless it relates to the employer’s business or anticipated R&D, or results from the employee’s work; the employee bears the burden of proving the exception. Illinois also expressly treats reverse engineering and independent development as proper means, making invention ownership and documented development history important inputs when you buy defense or enforcement protection.[^1][^2] **Coverage:** [Intellectual property](/coverage/intellectual-property) · [Illinois](/coverage/states/illinois) ## What Is Intellectual Property? Intellectual property insurance comes in two separate parts: defense, when you're accused of infringing a patent, trademark or copyright, and enforcement, when you pursue someone who copied yours. A defense-only quote doesn't pay for your own lawsuit, so ask for each part you need. [Read the national Intellectual property guide](/coverage/intellectual-property). ## What to Watch for in Illinois ### Reconcile Employee Inventions Before Scheduling IP The Illinois Employee Patent Act limits assignment clauses for inventions made entirely on personal time without employer resources or trade-secret information, subject to business, anticipated-R&D, and work-result exceptions. The employee bears the proof burden, and employers must give written notice of the carve-out; reconcile employee disclosures, agreements, and invention records before representing that the company owns an asset.[^1] ### Separate Misappropriation From Independent Development Illinois says reverse engineering and independent development are not improper means under its Trade Secrets Act. Preserve dated design records, access logs, and clean-room development evidence when a competitor alleges misuse; ask the broker whether the quoted policy addresses defense of those allegations and the costs of establishing independent development.[^2] ### Compare Defense And Enforcement Terms Illinois permits injunctions and damages for trade-secret misappropriation, and its statute preserves contractual remedies while displacing conflicting state civil remedies based on secret misappropriation. Ask separately about defense, enforcement, contract-based allegations, and whether legal fees erode limits; the statute does not determine what the policy covers.[^2] ## 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.[^3][^5][^4] - [Regulator website](https://idoi.illinois.gov/) - [License lookup](https://idoi.illinois.gov/companies/agent-lookup.html) - [File a complaint](https://idoi.illinois.gov/consumers/file-a-complaint.html) - Phone: (866) 445-5364 ### 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.[^7][^6][^10][^11][^8] [Surplus Line Association of Illinois](https://www.slai.org/) **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.[^8] **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.[^9] ## Providers With Documented State Licenses These providers publish a national listing for Intellectual property; 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 that the product is available in Illinois; [check the regulator’s license lookup](https://idoi.illinois.gov/companies/agent-lookup.html) and confirm state availability for your business when requesting a quote. - [Risklytics](/insurance-providers/risklytics) — **Entity:** Risklytics, Inc.; **role:** Insurance producer; **checked:** 2026-09-28. **Scope:** 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.[^17] ## Questions to Ask Before You Buy in Illinois 1. Which Illinois employees’ inventions fall within the company’s assignment clauses, and what written notices and records support ownership? 2. If a competitor claims trade-secret misuse, what evidence of independent development or reverse engineering should we preserve for counsel and the insurer? 3. Does the quote address defense and enforcement separately, and how does it treat contract claims and legal expenses within the limits? ## Intellectual Property in Illinois: FAQ ### Can an Illinois employer claim every invention an employee makes? No. An assignment clause generally does not apply to a qualifying own-time invention made without employer resources or trade-secret information, unless it relates to the employer’s business or anticipated R&D or results from the employee’s work; the employee bears the burden of proving the exception.[^1] ### Is reverse engineering trade-secret misappropriation in Illinois? No. Illinois law expressly says reverse engineering and independent development are not improper means, though other facts may still support a claim under the statute.[^2] ## Intellectual Property in Other States - [Alabama](/coverage/intellectual-property/alabama) - [Alaska](/coverage/intellectual-property/alaska) - [Arizona](/coverage/intellectual-property/arizona) - [Arkansas](/coverage/intellectual-property/arkansas) - [California](/coverage/intellectual-property/california) - [Colorado](/coverage/intellectual-property/colorado) - [Connecticut](/coverage/intellectual-property/connecticut) - [Delaware](/coverage/intellectual-property/delaware) - [District of Columbia](/coverage/intellectual-property/district-of-columbia) - [Florida](/coverage/intellectual-property/florida) - [Georgia](/coverage/intellectual-property/georgia) - [Hawaii](/coverage/intellectual-property/hawaii) - [Idaho](/coverage/intellectual-property/idaho) - [Indiana](/coverage/intellectual-property/indiana) - [Iowa](/coverage/intellectual-property/iowa) - [Kansas](/coverage/intellectual-property/kansas) - [Kentucky](/coverage/intellectual-property/kentucky) - [Louisiana](/coverage/intellectual-property/louisiana) - [Maine](/coverage/intellectual-property/maine) - [Maryland](/coverage/intellectual-property/maryland) - [Massachusetts](/coverage/intellectual-property/massachusetts) - [Michigan](/coverage/intellectual-property/michigan) - [Minnesota](/coverage/intellectual-property/minnesota) - [Mississippi](/coverage/intellectual-property/mississippi) - [Missouri](/coverage/intellectual-property/missouri) - [Montana](/coverage/intellectual-property/montana) - [Nebraska](/coverage/intellectual-property/nebraska) - [Nevada](/coverage/intellectual-property/nevada) - [New Hampshire](/coverage/intellectual-property/new-hampshire) - [New Jersey](/coverage/intellectual-property/new-jersey) - [New Mexico](/coverage/intellectual-property/new-mexico) - [New York](/coverage/intellectual-property/new-york) - [North Carolina](/coverage/intellectual-property/north-carolina) - [North Dakota](/coverage/intellectual-property/north-dakota) - [Ohio](/coverage/intellectual-property/ohio) - [Oklahoma](/coverage/intellectual-property/oklahoma) - [Oregon](/coverage/intellectual-property/oregon) - [Pennsylvania](/coverage/intellectual-property/pennsylvania) - [Rhode Island](/coverage/intellectual-property/rhode-island) - [South Carolina](/coverage/intellectual-property/south-carolina) - [South Dakota](/coverage/intellectual-property/south-dakota) - [Tennessee](/coverage/intellectual-property/tennessee) - [Texas](/coverage/intellectual-property/texas) - [Utah](/coverage/intellectual-property/utah) - [Vermont](/coverage/intellectual-property/vermont) - [Virginia](/coverage/intellectual-property/virginia) - [Washington](/coverage/intellectual-property/washington) - [West Virginia](/coverage/intellectual-property/west-virginia) - [Wisconsin](/coverage/intellectual-property/wisconsin) - [Wyoming](/coverage/intellectual-property/wyoming) [Other Coverage in Illinois](/coverage/states/illinois) ## Sources [^1]: [765 ILCS 1060/2, Employee Rights to Inventions](https://ilga.gov/documents/legislation/ilcs/documents/076510600K2.htm) — Illinois General Assembly; Subsections (1)-(3), ownership carve-out, burden, employer notice, and shop rights. Accessed 2026-09-28. [^2]: [765 ILCS 1065, Illinois Trade Secrets Act](https://www.ilga.gov/Legislation/ILCS/Articles?ActID=2239&ChapterID=62) — Illinois General Assembly; §§2(a), 3-8; reverse-engineering rule, remedies, secrecy in litigation, limitation, contract carve-out. Accessed 2026-09-28. [^3]: [Illinois Department of Insurance](https://idoi.illinois.gov/) — Illinois Department of Insurance; Official agency homepage and agency information. Accessed 2026-09-28. [^4]: [File a Complaint](https://idoi.illinois.gov/consumers/file-a-complaint.html) — Illinois Department of Insurance; Official insurance complaint intake and consumer phone. Accessed 2026-09-28. [^5]: [Agent Lookup](https://idoi.illinois.gov/companies/agent-lookup.html) — 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. [^6]: [Calculating & Remitting Taxes: Surplus Line Tax](https://www.slai.org/docs/surplus-line-filing-taxes/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](https://www.ilga.gov/Documents/legislation/ilcs/documents/021500050K445.htm) — Illinois General Assembly; Subsections (3)(a), (12): tax and code applicability. Accessed 2026-09-28. [^8]: [215 ILCS 5: Illinois Insurance Guaranty Fund](https://www.ilga.gov/legislation/ILCS/details?ActID=1249&ActName=Illinois+Insurance+Code.&ChapAct=215+ILCS+5%2F&Chapter=INSURANCE&ChapterID=22&MajorTopic=REGULATION&Print=True&SeqEnd=165100000&SeqStart=159400000) — Illinois General Assembly; Article XXXIV: cap, net-worth exclusions, exceptions, and non-admitted insurer exclusion. Accessed 2026-09-28. [^9]: [Illinois FAIR Plan Association](https://www.illinoisfairplan.com/) — Illinois FAIR Plan Association; Plan overview and current eligibility information. Accessed 2026-09-28. [^10]: [Stamping Fees: Fee Calculation](https://www.slai.org/docs/surplus-line-filing-taxes/remitting-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](https://www.ilga.gov/agencies/JCAR/EntirePart?titlepart=05002701) — 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](https://www.at-bay.com/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](https://www.coalitioninc.com/legal/licenses) — 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](https://www.corgi.insure/broker-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](https://www.hiscox.com/about-hiscox-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](https://www.nextinsurance.com/insurance-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](https://www.risklytics.ai/about/) — Risklytics; What we do; Who we insure; Licensing; Agency licenses table dated 2026-09-10. Accessed 2026-09-16. [^18]: [Insurance Licenses by State](https://www.techinsurance.com/legal/licenses) — 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](https://www.vouch.us/legal/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 2026-09-28. This guide is informational and does not determine whether a policy is available or meets your needs. [Editorial policy](/editorial-policy). To suggest a correction, [contact Spot](/contact) with a supporting source. ## Agent and Developer Resources - [Markdown page](https://spot.insure/coverage/intellectual-property/illinois.md) - [Developer resources](https://spot.insure/developers) - [Public MCP server](https://spot.insure/mcp) - [MCP server manifest](https://spot.insure/server.json) - [OpenAPI description](https://spot.insure/openapi.json) - [Public page index](https://spot.insure/llms.txt)