Illinois workers' compensation insurance
Illinois requires workers' comp from your first employee, full-time or part-time. Bliss Marc is an Illinois-licensed agency (#100299879) in Schaumburg, and we place coverage for Chicago-area employers every day, from home care agencies to offices and contractors.
- Who must carry it
- 1 employee
- Full-time or part-time, from the first day of hire.
- Penalty for knowingly going without
- $500/day
- Minimum fine of $10,000, plus possible criminal charges.
- 2026 loss cost change
- -1.2%
- NCCI voluntary-market filing effective January 1, 2026.
Who needs workers' comp in Illinois
According to the Illinois Workers' Compensation Commission (IWCC), any employer with even one part-time employee must carry workers' compensation, and coverage applies from the date of hire. Sole proprietors, partners, corporate officers and LLC members may exclude themselves by notifying their insurer in writing under Section 3(17)(b) of the Workers' Compensation Act. They can't exclude employees.
Penalties for not carrying coverage
- Fines of up to $500 per day of noncompliance, with a $10,000 minimum, for knowingly failing to insure
- Personal liability for corporate officers if the company doesn't pay
- Class A misdemeanor for negligent failure and Class 4 felony for knowing failure
- Work-stop orders that halt all business operations
How Illinois rates are set in 2026
Illinois insurers start from advisory loss costs filed by NCCI and apply their own multipliers, so quotes for the same business can vary widely by carrier. For January 1, 2026, NCCI filed a 1.2% decrease in voluntary-market loss costs and a 0.8% increase for the assigned risk market. Your premium follows the standard formula: payroll divided by 100, times the rate for your class code, times your experience modification.
Class codes we place most often in Illinois
- 8835: home health care workers
- 8810: clerical office employees
- 8742: outside salespersons
- Contractor and trade codes, with help collecting certificates from subcontractors
Your obligations after you buy
- Post the IWCC workers' compensation notice at every work site
- Report injuries to your insurer right away; employees generally must notify you within 45 days
- Keep payroll records by class code for the annual premium audit
Frequently asked questions
Is workers' comp required in Illinois with one employee?
Yes. Illinois requires workers' compensation if you have even one employee, including part-time employees.
Can I opt out of workers' comp as an Illinois business owner?
Sole proprietors, partners, corporate officers and LLC members can exclude themselves in writing under Section 3(17)(b). Employees can't be excluded.
Why do Illinois workers' comp quotes vary so much?
NCCI publishes advisory loss costs, but each insurer applies its own multiplier for expenses and profit. Comparing several carriers through an independent agent often makes a real difference.
Do you have an office near Chicago?
Yes. Our office is at 1900 E Golf Road, Suite 1275, in Schaumburg. Call 847-767-4504.
Sources: Illinois Workers' Compensation Commission; NCCI Illinois filing summary (July 30, 2025).
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