FAQ: Workers' Compensation Insurance in Illinois

Your business's Illinois workers' compensation policy protects your finances from future loss. You're liable when an employee becomes injured or ill due to an at-work accident or exposure. Fortunately, workers' compensation coverage will pay for medical expenses and lost wages so that you're in the clear. 

Illinois workers' compensation premiums will fall within a predetermined range by job duty. Coverage is dependent on loss history, industry, and experience. Check out some Illinois workers' compensation rates below, per $100 of employer payroll: 

IndustryLow CostHigh Cost
Nursing Homes and Assisted Living Facilities$1.55$4.25
Animal Shelters & Kennels-Veterinarian$0.82$2.31
Medical Office-Doctor-Dentist-Chiropractor, Optometrist$0.20$0.55
Home Healthcare Workers$1.23$3.49
Group Homes-Temporary Shelters Disability Facility$1.83$5.17

In Illinois, workers' compensation insurance is a requirement of every business that hires an employee. Failing to meet local law could result in significant penalties and misdemeanors. Coverage is required at the state minimum limits or greater.

Illinois workers' compensation insurance covers medical expenses and lost wages for an employee who gets injured or becomes ill as a result of doing their job. These include the following: 

  • Traumatic injuries
  • Repetitive injuries
  • Some mental or cognitive injuries
  • Occupational illnesses/diseases.

Every insurance policy will come with a list of exclusions that apply. In Illinois, the following incidents are likely to be excluded from your workers' compensation policy:

  • Intentional injuries or illnesses
  • Injuries or illnesses sustained outside of work
  • Injuries or illnesses sustained while committing a crime
  • Injuries or illnesses sustained under the influence of drugs or alcohol

An Illinois workers' compensation certificate of insurance provides proof of coverage to the requesting party. If you need to show evidence of insurance, then you can obtain a certificate from your local adviser for free. This certificate will show your current business policy limits and expiration dates.

An Illinois independent insurance agent can help you find workers' compensation coverage for an affordable price. They work with dozens of carriers, giving you options on both coverage and premium. An independent agent does the shopping for you at no additional cost, making it easy. 

No. Illinois workers' compensation benefits collected by your employees at the time of loss are not typically subject to taxes or counted as taxable income. 

What Are the Best Workers' Compensation Insurance Companies in Illinois?

National Average Cost of Workers' Compensation Insurance

Healthcare $1,825 Per $100,000 payroll

Retail Trade $2,850 Per $100,000 payroll

Construction $7,430 Per $100,000 payroll

Workers' Compensation Insurance Laws in Illinois

In Illinois, you are required to carry workers' compensation coverage as a business owner with any number of employees. This applies to full-time or part-time staff members and even seasonal employees. You could be penalized financially or worse if you're found without coverage. 


Common Workers' Compensation Claims in Illinois


The Top 5 fatal occupational injuries by industry in Illinois:

  1. Private industry
  2. Goods producing
  3. Construction
  4. Manufacturing
  5. Service Providing


Total fatal occupational injuries by event in Illinois:

  1. Transportation incidents
  2. Falls, slips, trips
  3. Violence and other injuries by persons or animals
  4. Contact with objects and equipment
  5. All other


According to statistical data, 135 workers' compensation claims turned fatal in Illinois in one recent year.