Neal Fusco
1 min read
What Is a Ghost Policy for Workers Comp?
Neal Fusco : Aug 27, 2026, 12:26:19 PM
Quick Answer: A ghost policy is a minimum premium workers compensation policy for a business with no employees, where the owner is excluded from...
Quick Answer: Illinois requires workers compensation insurance for nearly every business with employees, including part-time and family, with very few exceptions. Cost runs roughly $0.30 to $3.00 per $100 of payroll for most office and trade work, and much higher for high-risk classes like roofing. Going without it exposes you to fines of up to $500 a day and personal liability, so for most Illinois employers it is both legally required and the cheapest way to protect the business.
Workers compensation is one of the few coverages Illinois actually mandates, and one of the most misunderstood. Here is who needs it, what it costs, and how small businesses keep the premium down without risking a penalty.
Need workers comp coverage in Illinois?
We place small-business workers comp with the right class codes at the best rate, and keep you compliant. Fast quotes, no agency fees.
Get My Workers Comp QuoteIs workers compensation required in Illinois?
Yes. Illinois law requires nearly every employer to carry workers compensation as soon as they have employees, including part-time, seasonal, and most family members. The penalties for going without are among the strictest in the country:
- Fines up to $500 per day of noncompliance, with a $10,000 minimum
- Loss of the legal protections that normally shield you from employee injury lawsuits
- Potential personal liability for corporate officers, and even a stop-work order
How much does workers comp cost in Illinois?
Premium is based on your payroll and the risk of each job classification, priced per $100 of payroll. These are researched ranges:
| Type of work | Typical rate (per $100 of payroll) |
|---|---|
| Clerical / office | $0.10 to $0.50 |
| Retail / light service | $0.75 to $2.00 |
| Skilled trades | $2.00 to $5.00 |
| High-risk (roofing, framing) | $7.00 to $15.00+ |
So a small office with $200,000 of payroll might pay around $600 to $1,000 a year, while a roofing crew pays many times that. Estimates only; your rate depends on class codes, payroll, and experience modifier, and is confirmed by a producer. See the hidden costs of commercial insurance before comparing quotes.
What workers compensation covers
- Medical bills for job-related injuries and illnesses
- Lost wages while an injured employee recovers
- Disability and rehabilitation benefits
- Employer liability if an injury leads to a lawsuit
How small businesses lower workers comp cost
- Get your class codes right. Misclassified payroll is the most common reason businesses overpay. We audit this.
- Improve your experience modifier with a safety program and fewer claims; a clean record directly cuts premium.
- Separate clerical payroll from field payroll so office staff are not rated at the trade rate.
- Bundle with a business owners policy and shop carriers; specialists in your industry price risk better.
- Pay-as-you-go billing ties premium to actual payroll and avoids big audit surprises.
How is my exact workers comp premium calculated?
Premium equals your payroll (per $100) times the rate for each job class, multiplied by your experience modifier. The modifier compares your claims history to similar businesses: under 1.0 means fewer claims than average and a discount, over 1.0 means a surcharge. That is why two roofing companies with identical payroll can pay very different premiums, and why a safety program pays for itself.
How Pro Insurance Group keeps Illinois employers compliant for less
We place workers compensation with carriers that specialize in your industry, audit your class codes so you are not overpaying, and keep you compliant with Illinois law. It is part of a complete business insurance program, and pairs naturally with coverage for Illinois contractors.
Work With Pro Insurance Group
Pro Insurance Group is an independent agency based in Elgin, Illinois, serving Illinois small businesses across the state and 40+ states nationwide. We compare 20+ A-rated carriers, re-shop your policy at every renewal to keep your rate competitive, and tailor coverage to your needs. No agency fees, ever.
Call 833-776-4671 for a fast, no-obligation quote.
Frequently asked questions
Is workers comp required in Illinois?
Yes. Illinois requires workers compensation for nearly every employer with employees, including part-time and most family members. Penalties for going without reach $500 a day with a $10,000 minimum, plus personal liability.
How much does workers comp cost in Illinois?
Roughly $0.30 to $3.00 per $100 of payroll for most office and trade work, and much higher for high-risk classes like roofing. A small office might pay $600 to $1,000 a year; premium scales with payroll and risk.
What does workers compensation cover?
Medical bills and lost wages for job-related injuries, disability and rehabilitation benefits, and employer liability if an injury leads to a lawsuit.
How can a small business lower its workers comp premium?
Use correct class codes, separate clerical from field payroll, improve your experience modifier with a safety program, shop industry-specialist carriers, and use pay-as-you-go billing to avoid audit surprises.
Reviewed by Neal Fusco, VP, Commercial Lines
Neal places Illinois small-business workers comp with the right class codes at the best rate.
Illinois licensed insurance producer #18515626
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Employers Liability Insurance: What It Covers | Pro Insurance
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Quick Answer: Employers liability insurance pays your legal defense costs, settlements, and judgments when an employee or their family sues your...
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How Much Does Workers Comp Insurance Cost in 2026?
Neal Fusco : Aug 27, 2026, 12:26:19 PM
Quick Answer: Workers compensation is priced per $100 of payroll, not as a flat monthly premium. Across the country the median index rate is roughly...