Harsh Punishment is Awaiting Uninsured Employers in Illinois

Article Written By: Ed Sneineh

Workers Comp is a system that is designed by law to compensate employees for work related injuries, without regard to fault. In Illinois, the "Industrial Commission" is in charge of setting the rules and resolving the disputes of both the employers and the injured employees.

Coverage for employees starts immediately after hire. The Workers Compensation laws state that all injuries that are caused in whole or in part by the employee's work are covered. This includes also preexisting conditions that are aggravated by work.

Benefits provided under workers comp include medical care required to cure the injury plus certain disability income benefits, as well as vocational rehabilitation benefits. There is also death benefit for surviving family members if the injuries lead to death of the worker.

All employers in the State of Illinois are required to maintain workers compensation plan (either self insured with permission or purchase a workers compensation insurance policy). Employers are also required to pay 100% of the cost of the workers compensation insurance. Benefits that are paid to injured employees are not taxable to the employees. Employers are also required to maintain records of all work related injuries. All employers should post a notice in each workplace that explains workers rights under the Workers Compensation Act and list details of employers coverage.

An employer who fails to provide workers compensation because of negligence is guilty of Class A misdemeanor for each day without coverage, punishable by up to 12 months in jail and a fine of $2,500. If the employer knowingly fails to provide workers compensation then the employer is guilty of Class 4 Felony for each day without coverage, punishable by up 3 years in jail and $25,000 fine. The state can also shut down the employer if the employer knowingly fails to provide workers compensation coverage.

An injured employee must report the work related injury to the employer's management orally or in writing as soon as possible but not more than 45 days of the injury. Reporting an injury to a co-worker is not acceptable. Employer must provide all first aid and medical care, inform workers compensation insurance carrier, begin making disability payments if disability is expected to last more than 3 days. If employer disputes the injury, a written explanation must be provided to the employee.

Fraudulent statements made by employers or employees regarding workers compensation is classified as Class 4 Felony and are punishable by up to 36 months in jail and $25,000 fine.

Premium of workers comp coverage is based on several considerations: (1) Payroll or wages of employees- it determines the amount of exposures of the insurer to potential future disability payments when there is an injury. (2) Nature of work - cost of workers comp for construction workers is significantly higher than office employees. (2) Wages- Payroll- it determines the amount of exposures of the insurer to potential future disability payments when there is an injury. (3)Historical Claims. Previous claims means potentially higher premiums or even rejection by certain private insurers- up to a limit. If insurance companies refuse to insure a particular employer because of past claims or because of the nature of the business, the employer may have to go to the workers comp pool (National Council on Compensation Insurance) to secure the needed coverage.

Premiums for workers compensation policy are always estimates. Because the insurance company will be covering all of your employees in the future, no premium can be exactly determined until the end of the policy term at the time when the insurance company can audit your payroll. At the end of the policy term if the actual payroll that the employer paid in the past 12 months is equal to the payroll the employer reported as projected payroll at the time of buying the policy then there will be no difference in premium. However, if the employer over-projected the payroll at the time of obtaining the policy then the company may owe the employer a refund. If the employer under-projected the payroll at the time of signing up for the policy, the employer may have to pay more premiums to the insurance company for past coverage.

About the Author

Need info about Workers Compensation in Illinois, then visit Insurance Navy web site on how to get the best Workers Compensation Quote Online .

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