Accidents in the workplace are inevitable, regardless of how stringent your safety measures are. It is at this point that workers’ compensation comes into play. As such, having workers’ compensation no longer becomes an option but a necessity since accidents can only be prevented to a certain extent.
The Illinois worker compensation insurance policy states that any employee who gets injured while performing their regular duties is eligible for benefits. A portion of the coverage is allocated to workers’ emergencies, ongoing medical expenses, and lost wages during recovery. Read on to learn the ins and outs.
What Are The Legal Requirements?
Business owners must provide workers’ compensation coverage for all part-time or full-time employees. In addition, workers’ compensation insurance should only be purchased from private insurance providers or through permission to self-insure applications.
Who Is Expected To Have Workers’ Compensation In Illinois?
Business partners, members of limited liability companies, sole proprietors, and corporate officers can exempt themselves from coverage, but this is not usually the case. According to recent research, 91% of Illinois workers are covered by workers’ compensation insurance regardless of business formation.
Penalties For Not Having Insurance Coverage
The fine can reach up to $500 daily for noncompliance and a minimum of $10,000 for any employer who willingly fails to obtain insurance coverage. Business owners or corporate officers are usually held personally liable if they do not pay the penalties. It is worth noting that the Illinois worker compensation commission has collected over $ 8 million in fines since 2006.
In addition, corporate officers are guilty of a class A misdemeanor if they are found to be negligent in obtaining workers’ compensation insurance. They are also charged with a class 4 felony if they intentionally fail to get insurance. An employee may sue a business owner in civil court if they are injured while performing their regular duties if the business owner is uninsured.
The business owner must prove to the court that they were not negligent in obtaining workers’ compensation insurance. Furthermore, the Illinois workers’ compensation commission (IWCC) may issue an order to stop business operations until the owner provides proof of insurance.
How Workers’ Compensation Works In Illinois
Employees must communicate with their employer within 45 days of the injury, upon which the employer informs the insurance provider. If an injured employee is unable to work for three consecutive days, the employer is obliged to do the following:
- Continue paying the injured employee
- Provide the employee with a written document about the claim
- Provide a written statement if, for whatever reason, the claim is denied
- File the employer’s first report of injury with IWCC
Types Of Injuries Covered
Even though the state of Illinois determines what injuries are covered, below are some of the guidelines. They include the following:
- The injuries should be related to work and not self-harm, fighting, or drug abuse
- The injuries should fall within the scope of an employee’s employment
- Injuries as a result of long-term occupational illnesses like those resulting from exposure to toxic chemicals or back strain caused by repetitive motion
Workers’ Compensation Death Benefits
Beneficiaries, including the worker’s spouse and children, are eligible for benefits if a worker dies from a workplace injury. Other family members, like parents, are eligible if the deceased does not have a spouse or children.
How To Obtain Workers’ Compensation Insurance In Illinois
Employers can either get permission to self-insure from the state or purchase insurance. However, most business owners prefer to buy insurance. This is because they are required to have the financial capability to manage workers’ compensation claims without filing the claims with an insurer.
Get A Workers’ Compensation Policy From A Reputable Provider
Getting your employees’ Illinois worker compensation insurance should be manageable. Ensure that the provider uses modern technology and proprietary tools for quick quotes. This ensures that you focus on growing your businesses while the insurance provider takes care of workers’ claims in case of injuries.