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Workers’ Compensation Insurance in Illinois

Workers' Compensation Insurance in Illinois

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If your business has employees in the state of Illinois, you’ll need to make sure you adhere to Illinois’s Workers’ Compensation Insurance laws. Workers’ Compensation provides medical and financial benefits for employees who suffer work-related injuries or illnesses or for their survivors in the case of an employee death.

Who needs Workers’ Compensation Insurance in Illinois?

Illinois requires all employers who have employees to obtain Workers’ Compensation Insurance. In Illinois, an “employee” is generally defined as someone who is in the service of an employer and is not an independent contractor.

The Illinois Workers’ Compensation and Occupational Diseases Act (IWCA) defines all of the requirements for Workers’ Comp in Illinois, and the Illinois Workers’ Compensation Commission (IWCC) monitors, enforces, and administers the program. Ensuring your company is in compliance is critical, as there are serious penalties and fines for those who fail to abide by state regulations.

What employees are covered under Workers’ Compensation in Illinois?

Almost all workers are covered under Workers’ Compensation in Illinois. If you provide work or services for an employer, you will likely be eligible for Workers’ Compensation Insurance.

The following are categories of employees that are eligible for Workers’ Comp coverage:

The following are categories of employees that are generally excluded from Workers’ Comp coverage:

What Workers’ Compensation benefits do employees receive?

Under Workers’ Compensation in Illinois, employers are required to provide the following benefits to employees who are injured in the course of employment:

Medical Benefits

Temporary Total Disability Benefits

Temporary Partial Disability Benefits

Permanent Partial Disability Benefits

Permanent Total Disability Benefits

Vocational Rehabilitation Benefits

Death Benefits

What are the penalties for breaking Illinois Workers’ Compensation laws?

Failure to adhere to the Workers’ Compensation laws set out by the IWCA can result in significant fines and even imprisonment. In order to avoid any costly penalties, it’s important to consult the IWCA or your insurer to ensure you are in compliance. Below are the major ways in which companies can be penalized:

General Violations

Failure to Purchase Coverage

Failure to Provide Medical Benefits

Intentional Misrepresentation

How much does Workers’ Compensation Insurance cost in Illinois?

According to the National Academy of Social Insurance Workers’ Compensation Report (October 2019), the average employer cost for Workers’ Compensation in Illinois was $1.07 per $100 of covered wages. This figure is estimated across all insurers and all industries, so the cost to your particular business may vary.

How does the Workers’ Compensation claims process work in Illinois?

The claims process in Illinois begins with the employee. If an employee suffers a work-related injury or illness, he or she must immediately report the condition to the employer, either orally or by written notice within 45 days of the accident. For occupational diseases, the employee should notify the employer as soon as he or she is aware of the condition.

After being notified, an employer must provide the necessary medical services or first aid and inform the insurance carrier. If the injured employee cannot work for more than three days, the employer must begin TTD benefit payments, provide written request to the employee of additional information needed prior to TTD benefits being paid, or provide written explanation to the employee of a claim denial.

Employers must also submit a report to the IWCC within one month for any work-related injuries or illnesses that result in an employee being unable to work for more than three days. For work-related deaths, employers must submit a report to the IWCC within two working days. No reports to the IWCC are necessary for injuries or illnesses that require less than three days of a worker’s absence.

Illinois Workers’ Compensation Insurance Resources

For more information on Illinois Workers’ Compensation laws and requirements, please visit the following resources:

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