Illinois requires that nearly all employers must have workers’ compensation insurance. Businesses with at least one employee must have work comp coverage.
What’s more, compliance is strictly enforced: Negligence is a misdemeanor, while knowing failure to provide workers’ compensation insurance coverage for employees is considered a felony.
Get your small business covered today, or read on for more details on the Illinois workers’ compensation system.
You are required to carry workers' compensation insurance in Illinois if you have any employees. This includes full-time, part-time and most family members working for the business.
There are few exceptions to this rule; for example:
Speak with an insurance rep familiar with the Illinois workers’ comp system to make sure your business is compliant with state law.
Illinois has a private market. You have the option to purchase workers’ compensation insurance, or some larger employers may obtain permission from the commission to self-insure. Get started on a policy with WorkCompOne >>
Illinois workers’ compensation rates are recommended by the National Council on Compensation Insurance (NCCI), which most states use as their rating bureau. NCCI collects data on workplace injuries and advises rates based on class code, or industry classification.
Illinois does not have a state-funded insurance option. If your business is having trouble finding coverage, contact NCCI and ask for the Illinois assigned risk plan. NCCI also administers the state’s assigned risk pool, and will place you with a carrier.
Illinois work comp costs are among the highest in the nation, though 2011 reforms have been credited with reigning in costs. Expect assigned risk pool premiums to cost about 50% more than the open market, according to the Illinois Workers’ Compensation Commission.
Recently, the state legislature has been debating the creation of the Illinois Employers Mutual Insurance Company. This state-financed insurer would give employers a state fund option to compete with private insurance carriers, argue supporters. Critics believe inserting government into the marketplace will do more harm than good to work comp premiums.
Remember: Work comp covers wage replacement and medical bills for employees injured on the job. To protect against other injuries at your place of business, you may need general liability insurance. Learn more about general liability >>
Illinois law protects employees both working in, or employed within the state. This includes: