Schaumburg Workers' Compensation Insurance

Complete Guide to Schaumburg, IL Workers' Compensation Insurance

(Find the right workers' compensation policy for you.)

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From technicians at Motorola Solutions to cashiers at Woodfield Mall, there are thousands of people working in Schaumburg, Illinois. If an employee is injured on the job, it is the duty of their employer to cover any necessary medical expenses and compensate them for lost wages. This is where workers’ compensation insurance can help.

Some workers’ compensation insurance companies are better suited than others to cover businesses in certain industries. If you are an employer in this city, a local independent insurance agent can help you find the best and most affordable coverage for your business. Find an insurance agent in Schaumburg to learn more.

Is Workers’ Compensation Insurance Required in Schaumburg?

Employers in Schaumburg must be compliant with Illinois state laws regarding workers’ compensation insurance.  In this state, you are required to carry this insurance if you have any employees, even if you have just one part-time worker. Exceptions are made for:

  • Sole proprietors with no employees
  • Corporate officers who are part of the employer’s family
  • Direct family members who live in the same household as the employer

Exclusions do not apply to workers with hazardous jobs, like construction workers and truck drivers. These employees must be covered no matter what. Failure to meet the state’s requirements for carrying coverage can result in one to three years in jail as well as a fine of up to $25,000.

Coverage can be purchased through a commercial provider; or, with approval, you can self-insure. More than 90% of all employers in Illinois choose to purchase coverage.

How Much Does Worker’s Comp Insurance Cost in Schaumburg, IL?

The cost of your workers’ compensation coverage will depend on the types of work your employees do. Each type of job is given a certain classification code, and rates for each class code are set by the Illinois Workers’ Compensation Commission according to how likely a significant injury is to occur.

Commercial insurers use these rates as a starting point and can raise or lower rates accordingly according to your company’s claims history and experience modification. The following are the average rates paid per every $100,000 in employee payroll for three of the top industries in Schaumburg, IL:

  • Professional, scientific & technical services: $720 a year
  • Finance & insurance: $210 a year
  • Educational services: $700 a year

Because the top industries in Schaumburg are primarily white-collar, rates for coverage tend to be on the lower side. It is far less likely that a financial analyst will suffer a significant injury at work than it is that a welder at a construction site will.  On average, employers in Illinois spend about $1,150 a year for every $100,000 in payroll.

To find out how much it will cost you to purchase workers’ compensation insurance for your employees, consult a local independent agent.

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Schaumburg Workers’ Compensation Pays for Medical Treatment

All employers are required by law to post a workers’ compensation notice at every work site so that employees are aware of their rights and the procedures for getting compensation for injuries. If a worker is injured, they can begin the workers’ compensation claims process by reporting their injury to a supervisor. 

As the employer, you can designate a list of authorized physicians that injured employees can go to in order to receive treatment and follow-up care.  Workers’ compensation will pay for all necessary medical treatment, follow-up care, medications, and other related expenses. It is illegal for employees to be charged for any costs or co-pays when getting this care.

Schaumburg Workers’ Compensation Insurance Provides Disability Coverage

Disability coverage is designed to cover a large portion of an employee’s lost wages if they must take more than three consecutive work days off in order to recuperate.  There are different types of disability:

  • Total temporary disability: This is when an employee is temporarily unable to work at all while recuperating from an injury or occupational illness.
  • Partial temporary disability: This is when an employee is approved only for light-duty or part-time work while recovering from an injury or occupational illness.
  • Total permanent disability: This is when an employee injury is so severe that the injured employee is and will remain unable to work in any capacity.
  • Partial permanent disability: This is when an employee is injured in such a way that they must obtain a job in a different line of work in order to continue to earn money.

If an employee is approved by a physician for light-duty work while recuperating, they must report for this work or risk losing their disability benefits. If the light-duty job pays less than their previously earned wages, workers’ compensation can help injured employees by covering a portion of the difference in pay.

If an injury requires an employee to take time off work, workers’ compensation can pay out two-thirds of the employee’s average weekly wages. Benefits will continue until the employee has recovered or has reached their maximum recovery.

For permanent partial disability, compensation will continue for an amount of time that is determined according to the nature of the impairment. In the case of total permanent disability, the employee can receive benefits for life.

Schaumburg Workers’ Compensation Covers Fatal Work Injuries

Tragically, workers sometimes suffer fatal injuries on the job. These accidental deaths are extremely hard on the employee’s loved ones. Workers’ compensation insurance seeks to ease the burden on surviving family members by providing them with financial compensation.

If a work injury or occupation illness results in death within four years, workers’ compensation can cover up to $8,000 of the employee’s burial costs. It also provides weekly benefits to the deceased employee’s spouse and dependents.

Death benefits are paid out in an amount of two-thirds of the worker’s average wages for 25 years or up to $500,000, whichever is greater. If a deceased worker’s spouse remarries, the benefits will continue only if there are dependent children involved. Otherwise, the spouse will receive a lump sum payment of two years’ worth of compensation, and then benefits will cease.

Find the Best Workers’ Compensation Insurance in Schaumburg, IL

If you are an employer in Schaumburg and you are looking for the best workers’ compensation insurance for your business, a local independent insurance agent can help.  These agents can match you up with an insurance company that specializes in covering businesses like yours. Your agent can also ensure that you are getting your coverage at a competitive price by comparing customized quotes.

Discover the many benefits of working with a local independent insurance professional.  Contact an insurance agent with an office in Schaumburg to get started.

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