In spite of its simplicity and a well-defined theoretical basis, the Flory-Guggenheim approach is conventionally regarded as inapplicable to off-lattice system since the insertion probability of the approach does not account for the excluded region, existing in the off-lattice system. In this work, we propose the insertion probability accounting for the excluded region of off-lattice fluids and derive a new version of equation of state (EOS) for hard-sphere chains basing on the Flory-Guggenheim approach. To investigate the behavior of the excluded regions, a Monte Carlo sampling was performed for hard disks and the various excluded regions were found to have different density dependence. On the basis of the simulation result, we formulated the insertion probability for hard-sphere and that of hard-sphere chain which accounts for the effect of chain-connectivity on the monomer insertion. The proposed insertion probability was found to correctly predict the simulation data for monomer and correctly correlate the simulation data for chain fluids. The resulting EOS was found to meet closed-packed limit and predict the simulation data of compressibility factor for monomer and chains with a reasonable degree of accuracy. When compared with other off-lattice based EOS, it shows a comparable or better result. For second virial coefficient of chain molecules, the model was found to reasonably predict the simulation data. (C) 2010 Elsevier B.V. All rights reserved.