by Ed Sneneh, Illinois Workers Compensation Insurance Agent in Chicago

Workers compensation insurance in Illinois is the law! State of Illinois Laws state that any employer who knowingly and purposely fails to get workers compensation coverage may be subject to a daily fine of $500 for every day the business failed to have workers compensation coverage. Minimum fine for failure of providing workers compensation is set at $10,000. Officers of corporations that fail to obtain workers compensations for employee can be held responsible and liable personally if their corporations fail to pay these penalties. These officers can also be convicted of Class A misdemeanor, in addition to being personally responsible for paying the fine.

Sole proprietors, owners of business partnerships, corporate officers as well as members of a limited liability company are all exempt from the law. However, the Illinois Employee Classification Act which went in effect on January 1, 2008, mandated that almost all construction ventures, trucking business operating at a construction sites, or other extrahazardous occupations must maintain workers compensation coverage, regardless.

So, how do you deal with the elevating cost of workers compensation insurance? The following are few tips how to deal with that.

1. Proper Classification of Employees. Many businesses that are high risk in nature like trucking or roofing businesses may find it beneficial to break down the total payroll into different classes based on the nature of work performed. For example, if a trucking business has clerical staff, drivers and helpers, outside sales, it might be helpful to advise your agent of these classes of employees. Classifying the entire payroll as 'drivers and helpers' may be incur high cost. Even for 'truck drivers and helpers class', drivers who drive long haul have lower workers compensation insurance rates than local truck drivers.
 InsuranceNavy is a leader in the Illinois Workers Compensation Insurance. The agency represents several workers compensation carriers in the States of Illinois and Indiana, and is offering its services through several locations in the area.

For fast and free consultation, quick quotes please call one of our agents at:

(708) 233-4848


2. Selecting the Proper Workers Compensation Limits and Coverage. Workers compensation insurance comes at different limits and in some instances optional coverages. Depending on the need and budget of your business you may set the limits you need at the budget you can afford. The minimum coverage is $100,000/$500,000/$100,000; which means, respectively, bodily injury per work related accident, bodily injury for work related disease (Policy Limit), and bodily injury per work related disease (Each Employee). These limits can be higher, for example $500,000/$500,000/$500,000 or $1,000,000/$1,000,000/$1,000,000. Choosing a deductible may also reduce the cost of workers compensation insurance. It is always recommended that the business maintains higher limits with no deductible since the difference in price may not be big enough, especially for low risk ventures.

3. Finding Affordable Workers Compensation Insurance Rates by Shopping. Many standard insurance companies aggressively seek low risk businesses for workers compensation insurance. Finding lower insurance rates is always possible if the business is classified as low risk, such as offices and most retails. With high risk occupations such as trucking or construction shopping is limited as most companies do not offer coverages for these high risk classes. High risk businesses end up acquiring workers compensation insurance from the pool, the National Council on Compensation Insurance, which offers workers compensation insurance at a predetermined rate.

4. Obtaining Certificate of Workers Compensation Insurance from Independent Contractors. In many businesses where it is required to cover independent contractors (who get 1099), but who could not document existing workers compensation coverage, it is important that these business make it mandatory for all 'independent contractors' to provide certificates of insurance documenting workers compensation coverage. If this certification is not provided at the end of workers compensation policy year when the businesses total payroll is audited by the insurer,  the business may find itself in a position where it has to pay for workers compensations on all payments made to 'independent contractors' who could not document workers compensation coverage.

5. Excluding Owners & Officers For Workers Compensation Coverage. All businesses have the option to include or exclude the owners and officers of the corporation. These owners/ officers may have alternative coverage, or may simply be covered somewhere else under different plan.
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