Illinois workers' compensation insurance: Your ultimate guide
Everything to know about workers’ compensation for
Illinois
businesses
What does workers’ compensation cover?
A standard workers’ comp policy covers four primary areas: medical expenses, lost wages, employer liability and ongoing rehabilitation. EverPeak policies ensure your crew gets the care they need to return to work safely while protecting your business from the costs of workplace accidents.
Medical care
Coverage for the necessary treatment resulting from a work-related injury or illness.
Lost wages
Partial pay for employees unable to work while recovering from an injury.
Legal protection
Financial support for your business if an employee files a lawsuit related to an accident.
Ongoing care
Rehabilitation and training to support employees re-enter the workforce, and ongoing benefits for permanent injuries.
Death benefits
Financial support for the families.
What are
Illinois
's workers' comp laws?
Illinois is steeped in history and natural splendor, from the vibrant city of Chicago to the enchanting vistas of Starved Rock State Park. The Prairie State offers a thriving business environment with ample prospects for entrepreneurs and business proprietors.
Whether situated in the heart of Illinois' technological hub or nestled along the picturesque shores of Lake Michigan, ensuring the protection of your business and employees through workers’ compensation insurance is paramount.
What is workers' compensation?
Workers' compensation is a state-mandated insurance program for all employers, including those with part-time employees. It’s designed to provide employees who suffer work-related injuries or illnesses with medical treatment and indemnity benefits.
Without workers’ compensation, the cost of a work-related injured or ill employee’s medical treatment could become the responsibility of your business.
Illinois workers' compensation rules and laws
The Illinois Workers’ Compensation Commission oversees the workers’ compensation law in Illinois. The law requires employers to provide workers’ comp insurance, with limited exemptions .
Part-time, seasonal and temporary workers, minors, trainees, immigrants and working family members are considered employees under Illinois workers’ compensation law.
Employees can verify online if their employer has coverage through an online search tool.
Who is covered and exempt from
Illinois
workers' comp?
Who is covered?
Policies include protection for full-time and part-time workers, seasonal and temporary employees.
Exemptions from Illinois workers’ compensation may include, for example:
- Sole proprietors
- Corporate officers
- Business partners
- Limited liability company (LLC) members
Covered injuries and illnesses
Workers' compensation covers a range of work-related injuries and illnesses, including physical injuries resulting from an accident and occupational diseases that may develop over time due to job conditions.
Benefits provided
Illinois workers’ comp insurance provides several types of benefits for work injuries, which include:
- Medical benefits
- Lost wages and other monetary compensation
- Death and funeral benefits
These benefits include:
- Medical treatment for work-related accidents, injuries and/or illnesses
- Mileage reimbursement for travel to and from an authorized doctor
- Temporary disability benefits
- Permanent disability benefits
- Death benefits to surviving dependents
Benefits received rely on many factors, such as the employee’s:
- Average weekly wage before the injury
- Injury severity
- Length of recovery and ability to continue working
Illinois workers’ compensation rates
In Illinois, the weekly compensation rate is 66 ⅔% of a person’s average weekly wage based on the 52 weeks prior to the injury or illness.
This amount is subject to a statewide maximum reimbursement amount. Injured workers will not receive lost wages for the first three days unless they need at least 14 days of work off. The state maximum compensation (that change bi-annually) is $1,897.92 as of January 15, 2024.
Find more information on annual Illinois’ workers’ compensation rates.
How much does workers’ comp cost in
Illinois
?
How do you file a workers’ compensation claim in
Illinois
?
Filing a workers' compensation claim
In the event of a work-related injury or illness, employees must promptly notify their employer and seek medical attention.
Step 1: Seek treatment
It is crucial for workers to seek medical immediately when suffering a work-related injury for diagnosis and treatment. All care is covered by your employer and their workers’ comp partner with no cost to you.
Step 2: Report injury to employer
Employers must be made aware of the worker’s injury no more than 45 days after the incident.
Step 3: Work restrictions
When first treated, the medical provider should issue work restriction documentation that workers are to make their employer aware of with a copy.
Step 4: Claim
Employers are required by law to report accidents that result in more than three lost work days to the Workers’ Compensation Commission.
Once the accident is reported, the worker should receive a handbook that explains the law, benefits, and procedures. Handbooks can also be found on the Commission’s website.
If the worker loses time from work due to the work injury or illness, they may be entitled to receive weekly payments and necessary medical care until they are able to return to work safely.
It’s against the law for an employer to harass, discharge, refuse to rehire or in any way discriminate against an employee for exercising their rights under the Workers' Compensation or Occupational Diseases Acts.
If a fraudulent claim is filed it may result in legal repercussions.
Step 5: Ongoing treatment
Employers and their insurance partners must pay for all medical treatment connected to the work injury. Treatment is to continue until the worker reaches maximum medical improvement (MMI). MMI means that no further medical treatment would benefit the worker, as the medical condition has plateaued.
Step 6: Return to work
Following their recovery, a worker is expected to resume work safely. If an employee is unable to return to their previous position or any other type of work due to their work-related injury, they may be entitled to permanent total disability benefits.
Choosing a healthcare provider
If the workers’ compensation insurance partner accepts the claim, benefits will be issued immediately to ensure timely care.
Employers in Illinois should provide the injured worker with a panel of providers from which to choose a treating physician. The physician chosen becomes the authorized treating physician.
Employees must seek medical treatment from these designated providers to ensure coverage.
Compensation for missed work
If an employee is off work for more than 14 days, they are eligible for lost time benefits.
How to get workers' compensation
Insurance requirements for employers
Generally, employers in Illinois with two or more employees must carry workers' compensation insurance or qualify for self-insurance, depending on their size and industry. Compliance with these requirements is essential to protect both the employer and employees.
Choosing the right insurance provider
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
We recommend requesting multiple quotes and comparing the offerings before making a decision.
Covering your business and employees with a trusted insurance partner — like EverPeak — brings peace of mind so you can focus on your bottom line.
FAQs
Enforcing safety protocols, providing proper employee training, maintaining a clean and hazard-free work environment, and regularly reviewing safety practices can significantly reduce workplace injuries.
Your premium is primarily determined by your industry payroll classifications, geographic location and total annual payroll. Your business’s safety history can also play a major role in determining your final rate. Three key factors influence your base insurance rate:
- Industry classification codes: Higher-hazard trades naturally carry higher baseline rates.
- Geographic location: Rates and statutory benefit structures fluctuate heavily by state lines.
- Historical safety record: Maintaining an accident-free workplace lowers your Experience Modification Rate (E-mod), resulting in built-in premium discounts.
Most states require businesses with employees to carry workers’ compensation insurance to stay compliant. Requirements vary by location, but having coverage ensures your business is protected and your team has access to benefits if an injury occurs.
Employees can verify online if their employer has coverage through the state’s online search tool.
Ideally, the incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensures the necessary steps are taken to initiate the workers' compensation claims process.
Whether you need coverage for contractors depends entirely on your state’s specific regulatory definitions and formal worker classification tests. Since misclassification regulations are highly complex and can lead to severe audits or stop-work orders, it’s vital to ensure your entire labor force is properly verified and protected based on the actual day-to-day work they do.
Learn more: Do independent contractors need workers’ compensation?
In most cases, employees in Virginia are barred from suing their employers for work-related injuries or illnesses. The workers' compensation system provides an exclusive remedy, meaning that employees typically cannot file a lawsuit against their employers. Instead, they must pursue a workers' compensation claim to receive benefits for their injuries or illnesses.
In Virginia, employers who fail to procure or sustain the appropriate workers' compensation coverage for their employees may face civil fines of up to $250 per day of non-compliance. Failure to adhere to this requirement can reach a maximum of $50,000 in fines.
Workers’ compensation is a form of insurance that benefits employers and employees in the case of a work-related injury or illness.
Why choose EverPeak for workers’ comp coverage?
EverPeak protects the hardest-working businesses in (state) with simple, reliable workers’ comp starting as low as $18 a month. Backed by over a century of specialized experience, customers get multi-state coverage, fast and easy claims support, and a vast network of brokers.