IllinoisWorkers' Compensation Insurance

Find the Best Workers' Compensation Insurance Options in Illinois

There are about 1.2 million small business owners in the state of Illinois. Each of these companies, if it has employees, should at least consider getting workers' compensation insurance to provide reimbursement for lost wages and medical expenses if a worker gets injured or ill as a result of their job or workplace. Further, workers' comp is most often mandatory for many businesses. In Illinois, workers' comp is mandatory for businesses with at least one employee, with few exceptions.

Fortunately, an independent insurance agent in Illinois can help you find the right workers' comp. They know exactly how much coverage your specific business needs. Up first, though, here's an overview of workers' comp requirements and more in Illinois.

Illinois Workers' Compensation Laws

Illinois workers' compensation requirements may vary depending on the industry of the business. Most businesses in Illinois with at least one employee must have workers' compensation insurance by state law. Businesses without any employees, however, aren't required to carry coverage. This includes sole proprietors.

How Does Workers' Compensation Insurance Work in Illinois?

Workers' comp insurance in Illinois works by providing benefits for company employees who get injured or ill as a result of their job in some way. To qualify for coverage, injuries and illnesses can result from tools and equipment used for the job, the job site, or job tasks. Workers' comp can also provide some wage replacement for employees who get injured or ill due to the job, and the incident is covered. This coverage can also help pay for prescription medications and other medical treatments for affected employees.

Having workers' comp as a part of your Illinois business insurance policy can exempt your company from employee lawsuits for covered incidents. Family members of affected employees cannot sue the business if this coverage is provided. So, ultimately, having workers' comp insurance in Illinois can protect your employees and your business.

Illinois Workers' Compensation Exemptions

There are some exemptions to Illinois workers' comp requirements to be aware of. You'll need to review these exemptions when determining if your business needs coverage. Illinois workers' comp exemptions include: 

• Business partners
• Limited liability company (LLC) members
• Sole proprietors with no employees
• Corporate officers

An Illinois independent insurance agent can help you determine if your business is required by law to have workers' comp.

Do Independent Contractors Need Workers’ Comp Coverage?

Most businesses in Illinois with at least one employee are required by state law to provide workers' comp coverage. In general, all workers in Illinois are considered to be employees for tax purposes. However, the exception to this rule is independent contractors.

In Illinois, independent contractors aren't eligible for benefits from workers' comp. However, there is an exception to this rule for workers with hazardous jobs, such as in the trucking and construction industries. By law, businesses in these industries must provide workers' comp for all workers, including those classified as independent contractors, business owners, and sole proprietors.

Do Illinois Business Owners Need to Be Covered by Workers’ Compensation?

In Illinois, business owners don't need to purchase workers' comp to cover themselves. However, coverage should still be strongly considered for all business owners in the state. This especially applies if their work is hazardous.

Also, remember that business owners in the trucking and construction industries must be covered by workers' comp regardless. For business owners in other industries, having coverage can still help potentially save thousands of dollars or even more. Just one workplace incident could result in the need for costly medical treatment and time out of work.

What Does Illinois Workers' Compensation Cover?

Illinois workers' comp covers costs related to medical expenses, hospital visits, doctor's office visits, prescription medications, and more for employees who get injured or ill due to their job in some way. This coverage also helps replace some of an employee's income while they miss work to recover from an injury or illness. Make sure to review your individual workers' comp policy to understand the extent of coverage for your employees.

Illinois workers' comp can also cover funeral costs if a tragic incident results in an employee's death due to the work environment or job duties. This coverage is also critical because it prevents employees who get injured or ill due to a covered incident from filing lawsuits against your business. Families of these employees cannot press charges against the business, either, including if the worker died due to the job.

Here's a further breakdown of what workers' comp covers in Illinois:

• Time off during recovery: Coverage can replace some of an employee's wages while they take time off work to recover from a covered incident. If an employee needs to rest at home for a week after surgery following a workplace accident, workers' comp can help continue some of the wages they would've made during that time.
• Medical expenses: Coverage can provide reimbursement for medical expenses related to covered incidents, including necessary prescription medications. If an employee needs a prescription for chronic pain due to their work tasks, workers' comp can pay for this cost.
• Ongoing care: Coverage can provide reimbursement for required ongoing care costs to continue treating a covered injury or illness. If a worker needs physical therapy due to a workplace injury, this coverage can help pay for that cost.
• Death benefits: Coverage can also provide death benefits for employees who pass away due to a covered incident. These death benefits are usually paid to an employee's surviving dependent family members or spouse.
• Funeral costs: Coverage can help cover funeral costs for deceased employees after a covered incident. This reimbursement can be for burial costs, the price of the casket, and more.
• Disability benefits: Coverage can also pay for disability benefits, including temporary total disability benefits, permanent partial disability benefits, and permanent total disability benefits. If an employee qualifies for disability benefits due to a workplace incident, Illinois workers' comp can help cover these costs.

An Illinois independent insurance agent can help review your policy with you so you can be sure of what your workers' compensation policy covers.

How Much Does Workers’ Compensation Insurance Cost in Illinois?

The average cost of workers' compensation insurance in Illinois is $38 per month or $456 per year. However, the cost of workers' comp insurance varies based on a number of factors. The number of employees your company has and its annual payroll are two of the main factors that influence workers' comp costs.

A business's location and industry also influence workers' comp costs. Some industries come with greater risks, such as those in the construction industry. Because of the higher likelihood of injuries in these industries, insurance companies charge more for workers' comp coverage. Also, a business's past claims history and the coverage limits applied to its policy further influence the cost of workers' comp.

How Can Illinois Business Owners Save Money on Workers’ Comp?

Illinois business owners can save money on workers' comp in a few different ways. There is a "pay-as-you-go" payment option for policies, for starters. Selecting this option comes with the benefit of a low, upfront premium and the ability to buy only coverage based on actual payroll rather than projected or estimated payroll. This can help greatly reduce costs. Hiring seasonal or casual employees is another hack to reduce premium costs.

Providing your insurance carrier with proof that a safety program was completed by your business can also bring down the cost of workers' comp. Insurance companies like to see that your company has made efforts to reduce the likelihood of workplace incidents. So, having employees be required to complete safety training is another possible way to save on workers' comp. 

What Are the Penalties for Not Having Workers' Comp in Illinois?

Businesses in Illinois that fail to provide workers' comp if they have employees can get hit with penalties and fines. First, business owners can be fined $500 each day it did not have workers' comp, with a minimum fine penalty of $10,000. The business owner can also be found guilty of a misdemeanor if their failure to provide coverage is found to be negligent. Further, the business owner can be found guilty of a Class 4 felony if the failure to provide coverage is found to be knowing and willful. 

If the business owner gets convicted of a felony, in Illinois, they can be subject to one to three years of prison and a fine of up to $25,000 in addition. Corporate officers of companies that fail to provide workers' comp in Illinois can be held liable for these fines if the business does not pay them. Not equipping a business with workers' comp in Illinois can result in extremely expensive and devastating penalties.

How to Buy Workers' Compensation Insurance in Illinois

Business owners in Illinois have a couple of options for how to buy workers' compensation. The first option is for an Illinois business owner to purchase coverage through the voluntary market or to choose to self-insure their company. They must qualify for this option, however. Getting coverage online is also an option and coverage is typically quick and easy to obtain through this method.

Shopping for workers' comp is always easiest with the help of an Illinois independent insurance agent, however. These agents can shop and compare policies from many different Illinois insurers for you. In the end, they'll get you matched to the policy that provides the best overall blend of coverage and cost.

Best Workers' Compensation Insurance Companies in Illinois

You could get workers' comp from many insurers in Illinois. However, only a few provide the best quality and cost together in one place. That's why we compiled a list of only the best workers' comp companies in Illinois for your convenience. Start by checking into these top-rated carriers.

• Progressive: Progressive has been around for many decades and has an outstanding financial strength rating from AM Best. The carrier also offers 24/7/365 customer service.
• The Hanover: The Hanover got its start long ago, in 1852, and has excellent AM Best and Better Business Bureau (BBB) ratings. The insurance company also offers 24/7 claims reporting. 
• Nationwide: Nationwide is a longstanding carrier with an excellent reputation, thanks to its outstanding BBB and AM Best ratings. The carrier also offers 24/7 claims support. 
• Travelers: Travelers is another longstanding carrier with excellent customer feedback. Travelers is known for affordable rates, many discount and endorsement options, and great financial strength.
• Liberty Mutual: Liberty Mutual is a Fortune 500 company known for providing quality service and coverage. The carrier also has excellent AM Best and BBB ratings and offers 24/7 claims reporting.

An Illinois independent insurance agent can help you find the workers' comp your business needs from one of these outstanding carriers.

What Are the Best Workers' Compensation Insurance Companies in Illinois?

Top Workers' Compensation Insurance Companies	Star Rating
Progressive
Hanover
Nationwide
Travelers
Liberty Mutual

FAQs: Workers' Compensation in Illinois