Is workers comp required in Illinois?
Illinois generally requires most employers with one or more employees to carry workers compensation. Owners, partners and corporate officers are treated under their own rules, and some workers such as certain agricultural or domestic employees may be handled differently.
Buying coverage in Illinois
Illinois employers buy workers comp from private insurance companies, and businesses that are hard to place can obtain coverage through the state's residual market or a state-chartered carrier where one exists.
Who sets the rules
The Illinois Workers' Compensation Commission oversees workers comp in Illinois. In Illinois, the National Council on Compensation Insurance (NCCI) provides the classification system and loss costs that insurers use to file rates.
What Illinois employers should know
- Illinois actively investigates employers without coverage, and penalties for going uninsured can be significant.
- Manufacturing, warehousing and construction in the Chicago region are common classes where safety programs can influence pricing.
Illinois facts employers ask about
The Illinois Workers' Compensation Commission (IWCC) administers the system and resolves disputes through arbitrators and commissioners. Most Illinois employers must carry coverage from their first employee, including part-time and seasonal workers; limited exceptions apply to some agricultural employers.
The Commission's Insurance Compliance Division investigates employers without coverage. It can issue a work-stoppage order and assess daily penalties for each day the business operated uninsured, and officers of a corporation can be held personally liable. The Commission maintains a public lookup that lets anyone check whether an employer has a policy on file, which is one reason general contractors routinely verify their subcontractors.
Illinois uses NCCI classifications. Employers that private carriers decline can get coverage through the Illinois Assigned Risk Plan. Because Illinois benefits and medical costs are tied to its own fee schedule, prices for the same class can differ from neighboring Indiana, Missouri and Wisconsin, which matters for businesses that send crews across state lines.
Sources: Illinois Workers' Compensation Commission; NCCI. Rules change; confirm current requirements with the agency before you rely on them.
How premiums are calculated
As in most states, IL premium is generally the class code rate per $100 of payroll, adjusted by any experience modification, credits and state charges. The final amount is confirmed by a payroll audit after the policy period. Learn more about how workers comp rates work and preparing for an audit.
Industry guides for Illinois employers
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Illinois workers comp FAQ
Is workers comp required in Illinois?
Illinois generally requires most employers with one or more employees to carry workers compensation. Rules and exceptions change, so confirm your situation with the state agency or an agent.
Who oversees workers comp in Illinois?
The Illinois Workers' Compensation Commission administers the workers compensation system in Illinois.
Can I buy Illinois workers comp from a private insurer?
Yes. Private insurers write workers comp in Illinois, and a market of last resort is available for businesses that are hard to place.
How is workers comp priced in Illinois?
In Illinois, the National Council on Compensation Insurance (NCCI) provides the classification system and loss costs that insurers use to file rates. As in most states, IL premium is generally the class code rate per $100 of payroll, adjusted by any experience modification, credits and state charges. The final amount is confirmed by a payroll audit after the policy period.