Illinois Workers’ Compensation Insurance: What Chicago Small Business Owners Are Required to Carry 

Illinois law requires nearly every employer to carry this workers’ compensation insurance, and that obligation begins the moment you bring on your first worker. A gap in coverage can leave your company exposed to the cost of a workplace injury.

 

What Workers’ Compensation Actually Covers

Workers’ compensation can pay for injuries and illnesses that arise out of employment. In practice, that means a line cook who burns her hand during a lunch rush, a warehouse worker who strains his back lifting inventory, or an office employee who develops a repetitive stress injury from prolonged keyboard use. Coverage generally includes:

• Medical treatment and rehabilitation costs
• A portion of the injured employee’s lost wages
• Disability benefits if the injury limits the employee’s ability to return to work
• Death benefits for surviving family members in fatal workplace incidents

 

Who Is Considered an Employee Under Illinois Law

Part-time workers, seasonal staff and certain contractors may qualify as employees under state law, depending on how the working relationship is structured. Treating a worker as a contractor just to skip coverage can cause trouble if the state or your insurer later disagrees.

 

 

Factors Affecting Premiums

Premiums are calculated based on payroll size, the type of work your employees perform and your claims history. A higher-risk trade, such as construction or delivery, is rated differently than a retail shop or consulting firm.

 

Learn More

Contact Illinois Insurance Family to review your current coverage and make sure your coverage meets Illinois requirements. We work with employers in and around Chicago, IL to find workers’ compensation policies that match your workforce and operations.

 

 

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.