Illinois law specifies that all businesses with employees must have workers’ compensation insurance, with limited exceptions.
Every business in Illinois with employees is required to carry workers’ compensation insurance, including businesses with part-time employees. Illinois law requires employers to purchase a policy through an insurance company or obtain permission to self-insure.
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Business owners, corporate officers, partners, and sole proprietors usually don’t need to have workers’ comp coverage for themselves. The exception is businesses that engage in hazardous work (construction, roofing, etc.). These businesses are required to have workers’ comp coverage for all individuals, regardless of whether they are sole proprietors or owners.
Workers’ compensation insurance costs vary by state and the nature of the occupation. Estimated employer costs for workers’ compensation in Illinois are $1.15 per $100 in covered payroll, according to the National Academy of Social Insurance [PDF].
However, the specific type of job performed will be the greatest factor for determining costs for workers’ comp coverage. Even within the same company, one job might be more hazardous than another.
When an employee is injured, he or she is required to inform the employer within 45 days of the event.
The employer is then obligated to inform the workers’ compensation insurance carrier or administrator. If the employee cannot work for more than three days because of the injury, the employer must also:
The Illinois Workers’ Compensation Commission (IWCC) facilitates workers’ compensation claims.
If a person dies as a result of an injury on the job, his or her dependents are entitled to receive workers’ compensation death benefits. Illinois allows for benefits to a deceased worker’s:
If the deceased worker does not have any of these survivors, benefits might go to another family member, including parents, adult children, or grandchildren.
Workers’ compensation death benefits in Illinois are allocated with weekly payments. An eligible dependent could receive up to two-thirds of the deceased person’s average weekly wage, within the minimum and maximum amount established by the state each year. Benefit payments end after $500,000 or 25 years. Workers’ compensation death benefits can also be used for funeral expenses up to $8,000.
Most workers’ compensation settlements result in a lump-sum payment. Illinois allows payment installments over time in two ways:
Although a settlement usually means that the worker has closed his or her rights to workers’ comp benefits, sometimes medical rights are kept open if the person is likely to require extensive future medical treatment as a result of the injury.
There are two considerations for workers’ compensation statute of limitations in Illinois:
If the injury is from ongoing or repetitive trauma, and not a specific incident, then the date of injury is considered to be the date on which a reasonable person would have become aware of the injury and the fact that it was caused by employment.
If you are ready to explore workers’ comp insurance options for your Illinois business, start a free online application today to compare quotes from top-rated carriers.