Are All Employers Required to Carry Workers’ Comp Insurance?

Are All Employers Required to Carry Workers’ Comp Insurance?

workers compensationIn Illinois, all employers have to carry workers’ comp insurance if they have at least one part or full-time employee on the payroll. If your employer has denied you insurance after sustaining a workplace injury, you should hire Antioch workers’ comp lawyers as soon as possible.

Exemptions to Workers’ Comp

Some Illinois employers are exempt from this insurance. These include:

  • Business partners.
  • Sole proprietors.
  • Corporate officers.
  • Members of Limited liability companies (LLC)

Who Should Have Workers’ Compensation Insurance

The following business owners have to provide coverage for their employees or risk penalties:

Independent Contractors

The state determines whether an employer is a contractor or employee. These can include contractors who hire employees on a full or part-time basis, including family members. For instance, even if truck drivers are independent contractors, they still have to provide workers’ comp insurance to their employees.

Hazardous Industries

Employees in any hazardous industry, such as a construction or trucking company, are eligible for coverage. Their employers have to get the insurance whether they are sole proprietors, business partners, or members of an LLC or corporate office.

What Employers Should Do If They Don’t Have to Get Workers’ Compensation

Employers who are excluded from getting worker’s comp for their employees need to file a coverage opt-out form with the Division of Workers’ Compensation. However, this doesn’t mean they are home free. They still need to get other insurance to protect their employees if they are injured in the workplace.

Penalties for Ignoring Workers’ Comp Insurance

If an employer is legally obliged to get this insurance for their employees and knowingly fails to get it, they may be fined heavily. Expect anywhere between $500 and $10,000 per day, depending on the scale of operations. Corporate officers are not exempt from these fines if they are found guilty by Antioch workers’ comp lawyers. Besides facing hefty penalties, they will also lose their employer’s protection which prevents workers from suing you.

The Cost of Workers’ Compensation

There is no standard fee. The price of the workers’ comp package an employer gets will depend on several factors based on their business operations. They can pay as low as $40 a month for the coverage, but the insurance company will consider the following to calculate costs:

  • The type of work their employees do.
  • Payroll.
  • Their claims history.

Some types of coverage can also provide death benefits to employees’ families who lose their lives on the job or because of a work-based illness or injury.

Where You Can Get Coverage

Employers can get workers’ compensation coverage for their employees from any private insurance company in Illinois. If they cannot do so, they can go to the National Council of Compensation Insurance to get coverage. Be advised that their premium can be 50 percent higher than private insurers can offer.

Contact The Law Offices of Robert T. Edens for Workers’ Compensation Cases

If you have been denied workers’ compensation or your employer doesn’t offer coverage even though they aren’t exempt, you have grounds to sue. The experienced Antioch workers’ comp lawyers at the Law Offices of Robert T. Edens can ensure you get the compensation you deserve.

Call today for a free consultation

(847) 395-2200