Illinois Employees Compensation Insurance coverage Legal guidelines – Forbes Advisor

Editor’s Note: Forbes Advisor may earn a commission on sales made through affiliate links on this page, but this does not affect the opinions or ratings of our editors.

If you get sick or injured as a direct result of your work, you may be entitled to unemployment benefits. These benefits include medical care, physiotherapy, disability benefits and reimbursement of some lost wages.

There is no federal employee compensation law, and each state has jurisdiction over the laws and regulations governing employee compensation in its state. Here’s a look at how workers’ compensation insurance works in Illinois.

Corporate insurance made easy

Compare free quotes from top insurers at SimplyBusiness. Get a policy in less than 10 minutes.

What Illinois Workers Comp Insurance Covers

There are several types of employee compensation benefits in Illinois, including:

• Medical supplies to treat the injury or illness
• Temporary total disability benefits when an employer is unable to work and is recovering from an employee’s illness or injury
• Temporary partial disability benefits when an employee works but only does light duty or fewer hours
• Permanent partial disability benefits for an employee who has suffered a permanent disability but is able to work
• Permanent full disability benefits for employees who are permanently disabled
• Benefits for survivors for the surviving family members of employees who have died as a result of an occupational disability injury or illness. The benefit amounts to two thirds of the average gross weekly wage of the employee in the 52 weeks prior to the injury or illness

Who Needs Workers Compensation Insurance in Illinois?

Illinois law requires employers to purchase workers’ compensation insurance for nearly all employees who are employed in Illinois.

If you have an employee, including a part-time worker, you must get workers compensation insurance in Illinois.

There is no waiting period for disability insurance. Employees are covered by the Illinois Workers Compensation Act from the time they are hired.

Sole proprietorships, business partners, executives and members of limited liability companies can exempt themselves from employee insurance.

Penalties for not taking out workers’ compensation insurance

An Illinois employer who knowingly does not purchase employee insurance can be fined up to $ 500 for each day of non-compliance. Corporate officers can be held personally liable if the company fails to pay the fine.

In addition to a fine, the Illinois Workers Compensation Commission may order a work freeze for an employer who has failed to offer workers compensation insurance. The employer must then cease all business operations until proof of insurance can be provided.

Where to Buy Workers Compensation Insurance in Illinois

Illinois employers have a choice between taking out workers’ compensation insurance or being allowed to self-insure. According to the Illinois Workers’ Compensation Commission, about 90% of employers buy insurance.

If you can’t find an insurer who will sell you an employee compensation policy, you can enroll in the market of last resort or have your agent enroll it. This residual market has premiums that cost 50% more than the open market and is administered by the National Compensation Insurance Council.

Illinois employers can also apply for permission to take out employee compensation insurance.
Companies can take out insurance individually or join a pool with other employers.

The Illinois Workers Compensation Commission oversees individual auto insurers and the Illinois Department of Insurance evaluates group self-insurers.

To qualify for self-insurance, an employer must meet certain requirements, including proof of financial strength. As a self-insurer, the employer is responsible for paying and administering the compensation claims of its employees.

Largest disability insurance in Illinois

Where can employees submit complaints?

If you have any problems with employee compensation rates or awards, contact the Illinois Department of Insurance. You can file a complaint online by clicking the link to the Compensation Complaint Form. You can also call (866) 445-5364 and speak to someone about a professional indemnity complaint.

Prepare to demonstrate improper action, such as showing that an insurance company paid last year’s fee schedule instead of the current year’s fee schedule.

Check whether an employer is insured

Illinois law requires employers to post a completed Employee Compensation Notice in a prominent place at each workplace.

You can also search for employee compensation insurance from an Illinois employer online.

If you suspect an employer does not have employee compliance insurance, contact the Insurance Compliance Division or call the Information Unit at (312) 814-6611 or within Illinois toll free at (866) 352-3033.

Illinois Workers Comp Insurance Costs

How much a company pays for workers’ compensation insurance depends on several factors, such as:

In Illinois, according to Cerity, the average employee compensation rates are 11 cents per $ 100 payroll for low-risk employees and $ 37.24 per $ 100 payroll for high-risk employees.