Workers' comp myth

Believing the myth can cost your business in fines going back years.

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I‘m frequently asked: "when do you need to have workers' compensation?" My answer tends to surprise people. Many business owners are under the impression that you need to have a certain number of employees before workers' compensation is required. That's just not the case.

​My answer is this:

If you have even one employee, you need workers' compensation. 

It’s the law in the State of Illinois.  There are penalties if you are caught in violation of this law. In fact, fines can go back to the day you hired your first employee and did not have workers' compensation. According to the Illinois Workers' Compensation Commission:

"An employer that knowingly and willfully fails to obtain insurance may be fined up to $500 for every day of noncompliance, with a minimum fine of $10,000. Corporate officers can be held personally liable if the company fails to pay the penalty.”

Workers' Compensation Helps Business Owners

Workers' compensation was created to protect employees who get sick or are injured on the job while they are performing regular work duties. But it also protects you as a business owner. Employees generally cannot sue an employer for a work-related injury or illness when the employer carries workers' compensation insurance. Check with the state you are doing business in to ensure you are following the law.

Exceptions to the Rule

There are instances were you do not need to carry workers compensation. 

• If you are a sole proprietor, corporate officer or an LLC member, you can elect to be excluded. 
• A few occupations are excluded. 

Visit the state of Illinois Workers' Compensation Commission website to ensure you are up to date with the latest laws and regulations. ​

Get Your Workers' Compensation Questions Answered

You are an expert in your industry and your company. You do not have to be an expert in workers' compensation, too. If you have questions, we are more than happy to help. If you do not carry workers' compensation insurance, we can set you up today. Contact us.