Illinois Workers Compensation Insurance 

Quick answer: Illinois requires nearly every employer to carry workers compensation insurance, even with a single part time employee, under the Illinois Workers' Compensation Act. Coverage pays medical care, two thirds of lost wages, disability benefits, and death benefits for work related injuries. Operating without it can mean fines of up to $500 per day and a work stop order.

If you employ anyone in Illinois, workers compensation is not optional. The requirement applies from an employee's first day on the job, covers part time and seasonal workers, and is enforced by the Illinois Workers' Compensation Commission with some of the stiffest noncompliance penalties in the country.

At Pro Insurance Group, we are headquartered in Elgin and quote Illinois workers compensation every day for offices, contractors, trucking and towing operations, restaurants, assisted living facilities, and businesses across Kane County, McHenry County, and the entire state. Because we are an independent broker, we shop your class codes across multiple carriers instead of giving you one company's rate.

What Illinois law requires

The Illinois Workers' Compensation Act requires almost every employer doing business in the state to provide coverage, with very narrow exceptions. The rules that catch most business owners off guard:

• One employee is enough. The requirement starts with your first hire, full time or part time.
• Owners can exempt themselves, not their staff. Sole proprietors, partners, corporate officers, and LLC members may opt out of covering themselves but must still cover employees.
• Contractor classification is strictly tested. Illinois applies tough standards for who counts as an independent contractor, and misclassification penalties are severe.
• Coverage is through private carriers. Illinois has no state fund requirement; you buy from licensed insurers or qualify to self insure with state approval.

What Illinois workers compensation pays

When an employee is injured on the job in Illinois, the policy covers all reasonable and necessary medical treatment with no copays or deductibles for the employee, temporary total disability benefits equal to two thirds of their average weekly wage while they recover, permanent partial or total disability benefits if the injury causes lasting impairment, vocational rehabilitation when they cannot return to their old job, and death benefits for surviving dependents after a fatal accident.

The cost of going without it

Illinois enforcement is aggressive. Failing to carry required coverage exposes a business to fines of up to $500 for every day without insurance with a minimum penalty of $10,000, personal liability for corporate officers, a work stop order that halts operations until coverage is bound, and potential felony charges for knowingly failing to insure. Next to those numbers, the premium is the cheap option.

What Illinois employers pay

Premiums are calculated per $100 of payroll using the class codes that match your work. Illinois rates generally sit near the national average. Office and clerical operations often pay well under $1 per $100 of payroll, while roofing, trucking, towing, and construction trades can run several dollars per $100. Your claims history and experience modification factor move the final number, which is exactly where an independent broker earns its keep by shopping carriers that want your class of business.

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Frequently asked questions

Related coverage for Illinois employers

See our national workers compensation insurance overview, pair it with a business owners policy for your property and liability coverage, or explore all of our business insurance solutions.