Workers Compensation Insurance
Illinois requires workers compensation insurance from almost every employer with a payroll. The Illinois Workers’ Compensation Commission states that one employee, even a part time employee, creates the obligation. Viva Insurance Services quotes workers compensation insurance for small businesses in Schaumburg, IL and the surrounding suburbs.
Who Illinois Requires to Have Coverage
The rule reaches further than most owners expect. A landscaping company with two seasonal helpers needs a policy. So does a salon with one part time receptionist.
Coverage begins the moment a person is hired, according to the Commission. There is no waiting period and no minimum number of hours.
An employer who knowingly and willfully skips the policy faces a fine of up to $500 for every day without insurance. The minimum penalty is $10,000.
Corporate officers can become personally liable. The Commission can order the business to close until coverage is in force.
A few narrow exemptions exist under Section 3 of the Act. Sole proprietors with no employees are the most common one. Ask an agent or an attorney before you assume your business fits an exemption.
What the Policy Pays For
An injured employee receives medical treatment for the work injury at no cost to them. The policy pays the doctor, the hospital, and the physical therapist directly.
Wage benefits replace part of the employee’s income while a doctor restricts them from work. Permanent disability benefits apply when the injury leaves lasting damage. Death benefits go to the family after a fatal accident.
The employer gets something in return for the premium. Workers compensation is the exclusive remedy in Illinois, so an employee who accepts benefits gives up the right to sue the business for the injury. Employers’ liability coverage, part of the same policy, defends the business in the exceptions to that rule.
How Carriers Price the Policy
Two numbers drive the premium. Annual payroll is the first. The second is the class code assigned to the work your employees do.
Every job has a code and a rate attached to it. A clerical employee at a desk falls into a low rated class. Roofers and framing carpenters land in a high rated class, because the injury data for those trades is worse.
Payroll gets divided by 100, then multiplied by the rate for the class. An experience modifier adjusts the result up or down based on your claims history. New businesses start at a neutral modifier.
Getting the class codes right on the application is worth the effort. A misclassified payroll shows up at the annual audit as a large extra bill.
The Certificate Request That Sends Owners Looking
Most calls to the office start the same way. A general contractor will not let the crew on site without a certificate.
Property managers delay the lease until the paperwork arrives. Hospitals and school districts release a purchase order only after they receive proof of coverage.
Certificates for active clients go out within [COI TURNAROUND]. Have the requesting company’s name and address ready when you call.
Workers Compensation Insurance in Schaumburg, IL
Viva Insurance Services is an independent agency at 1901 North Roselle Road, Suite 800 in Schaumburg. The office is open Monday through Friday from 10 AM to 7 PM, and Saturday from 10 AM to 3 PM.
Bring your payroll by job type, your employee count, and your loss history from the last three years. Owners who also need general liability insurance or a business owners policy can price everything in the same visit.
Call (847) 238-3861 or get a free quote for workers compensation insurance. The full list of commercial coverage appears on the business insurance page.
Frequently Asked Questions
Do I need workers compensation for one part time employee in Illinois?
Yes. The Illinois Workers’ Compensation Commission states that one employee, including a part time employee, requires coverage.
Are 1099 contractors covered by my policy?
Independent contractors are not employees under the Act. The Commission can reclassify a worker as an employee if you control their hours, supply their equipment, and direct their work.
What happens if I go without workers compensation insurance?
An employer who knowingly and willfully fails to insure can be fined up to $500 per day. The minimum fine is $10,000, and the business may be ordered to stop work.
Can a sole proprietor with no employees skip the policy?
Usually yes, though some contracts require a policy anyway. Owners can elect to include themselves when a client demands proof.