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Illinois Workers' Compensation Insurance
Protect your business and employees with Illinois workers' comp
Whether you're running a small startup in Champaign or managing a large corporation in Chicago, ensuring the safety and well-being of your employees is important. Illinois workers' compensation insurance provides essential financial and medical benefits to employees who get injured or sick on the job. It helps care for your workforce, minimize your company's liability, and comply with state laws.
Carrying workers' compensation insurance in Illinois helps you navigate your business with confidence. Let Progressive Commercial connect you with the right coverage to protect your employees.
Who needs workers' compensation insurance in Illinois?
Workers' comp is required for most businesses in Illinois. If you have one or more employees, even if they're family members or part time, you'll probably need this coverage.
Illinois workers' compensation insurance exemptions
Some exemptions to workers' compensation rules in Illinois can include:
- LLC members: LLC members can usually decide for themselves if they want workers' compensation insurance in Illinois. That said, they might need to get a policy if the state classifies their work as high risk. Explore information on LLC business insurance.
- Corporate officers: Corporate officers, such as a CEO, president, or treasurer, may exempt themselves from workers' comp coverage.
- Sole proprietors: Sole proprietorships are businesses that are owned and operated by one person. They don't need to carry Illinois workers' compensation coverage unless they engage in hazardous work, such as construction. Learn more about business insurance for sole proprietors.
- Certain agricultural businesses: Depending on the size of your operation, family members working on a farm might not need workers' compensation in Illinois.
If you're unsure about which Illinois workers' compensation laws apply to your business, speaking with an insurance expert can help. Call us for additional support.
What are the penalties for not having workers' comp in Illinois?
Because it's required by law, there are penalties for not having workers' compensation insurance in Illinois. Having coverage prevents serious financial and legal consequences, such as a $500 fee for every day of noncompliance.
Being negligent and failing to get workers' comp insurance is a misdemeanor, while willfully refusing to carry it is a felony. A felony conviction could come with up to three years of jail time and fines up to $25,000.
The best way to avoid these risks is to follow Illinois workers' compensation laws and get insurance.
How much does workers' comp cost in Illinois?
Illinois workers' compensation insurance rates depend on several features of your business, including:
- Job classification code: The National Council on Compensation Insurance (NCCI) sets Illinois workers' compensation class codes for different jobs based on risk.
- Payroll: Your Illinois workers' comp rate is typically calculated per $100 of your business's total payroll. The higher your payroll, the more you can expect to spend on a policy.
- Claims history: Your claims history affects your Illinois workers' comp cost. If your company has more claims than average for your industry, your premium will probably be higher. Fewer claims can lead to reduced rates.
- Insurance carrier: Illinois workers' compensation insurance companies can offer different rates based on their criteria and risk assessment.
How can you get workers' comp in Illinois?
You can get Illinois workers' compensation insurance three ways:
- Private insurers: Many businesses get Illinois workers' compensation policies through private insurers that can tailor coverage to meet specific needs and offer additional benefits. Ask about special features when starting a quote through Progressive Commercial.
- Self-insurance: Companies can apply for self-insurance through the Illinois Public Risk Fund. This option might reduce premiums by managing the administration and payment of workers' comp claims in-house, using funds that have been set aside. However, these businesses assume all financial risk.
- NCCI assigned risk pool: Some businesses can't get private coverage or self-insurance because they're new, high-risk, or have filed a lot of claims. In these cases, workers' compensation is available through the NCCI.
How does workers' comp work in Illinois?
Workers' compensation insurance provides necessary care for employees with work-related injuries and illnesses. After the employee reports their injury, the employer will file a claim. If the claim is approved, the employee will start receiving financial support. How long workers' comp lasts in Illinois depends on the severity of the incident.
Common workers' compensation benefits include:
- Medical expenses
- Disability benefits
- Lost wages
- Rehabilitation costs
Workers' comp provides a process for handling disputes and returning to work. It also protects employers from fines and lawsuits because employees who accept benefits usually can't sue for their injuries.
Workers' compensation death benefits
Illinois workers' compensation insurance death benefits provide financial support to a deceased employee's spouse and dependents. Eligible family members can receive income benefits up to a total of $500,000 or for 25 years, whichever is greater.
Illinois workers' compensation statute of limitations
The statute of limitations on filing a workers' comp claim in Illinois is typically three years from the date of injury or diagnosis. That said, it's best to file a claim as soon as possible. You should encourage your employees to report their injuries, either verbally or in writing, within forty-five days of an on-the-job accident.
Get an Illinois workers' comp quote with Progressive Commercial
Safeguard your business with an Illinois workers' compensation insurance quote from Progressive Commercial. We make protecting your business and your employees easy.
Call us to speak with an agent or start an online quote today.
