Illinois Workers' Compensation Insurance
Everything you need to know about workers' comp in Illinois: when it's required, who's exempt, average rates, and how to get coverage in 60 seconds.
When is workers' comp required in Illinois?
Required for any employer with one or more employees, including part-time.
Sole proprietor & partnership rules
Sole proprietors are exempt unless they elect coverage.
Owner / corporate officer exclusion
Up to 4 officers per corporation may opt out by filing form.
Illinois-specific notes
High-cost state with significant litigation; benefits among the most generous in the country.
How much does workers' comp cost in Illinois?
The average workers' comp rate in Illinois is approximately $1.66 per $100 of payroll. Your actual rate depends on your industry class code, claims history, payroll size, and carrier.
Example: a Illinois business with $100,000 in payroll at the state average rate would pay approximately $1,660 per year. A clerical-only business (class code 8810) would pay much less; a roofing contractor (5551) would pay much more.
Want an exact rate for your business?
Class code rates vary widely. Get a free quote and we'll look up your exact Illinois rate for your industry.
Get My Illinois Quote →Illinois workers' comp by industry
Industry-specific rates, common class codes, and requirements for Illinois businesses:
Frequently asked — Illinois workers' comp
Do I need workers' comp if I have only one employee in Illinois?
Yes — Illinois requires workers' comp coverage starting with one employee.
Are 1099 contractors covered under my Illinois workers' comp policy?
Generally no — true independent contractors are not employees and not covered. However, Illinois (like most states) applies an "ABC test" or similar to determine if a 1099 worker is actually a misclassified employee. If they're misclassified, you may owe back premium and penalties. Many general contractors require their 1099 subs to carry their own workers' comp.
Can I get pay-as-you-go workers' comp in Illinois?
Yes — most major carriers offer pay-as-you-go workers' comp in Illinois, with premium based on actual payroll each pay period instead of a large upfront deposit.
What if I'm being audited by my Illinois workers' comp carrier?
Workers' comp audits often result in additional premium owed because of misclassified employees, missed payroll, or wrong class codes. We offer free audit reviews and can dispute incorrect classifications with your carrier. In many cases we save clients thousands.