The Ultimate Guide to Workers' Compensation Insurance for Small Business Owners in Chicago
As a small business owner, you likely have many things on your plate. Between running the day-to-day operations of your company and keeping up with state laws, it's easy to let something like workers' compensation insurance fall through the cracks. However, you could face serious consequences if you don't have coverage for your employees and something goes wrong— such as massive fines and liability for their medical costs.
What Does Worker's Compensation Cover?
Workers' compensation covers medical expenses related to work-related injuries or illnesses. This includes medical bills from doctors and hospitals, physical therapy sessions, prescriptions filled by pharmacies (including over-the-counter drugs), prosthetics such as artificial limbs or eyeglasses— anything related to treating your employee's injury at home or in the hospital.
It can also cover lost wages, temporary or total disability benefits, and death benefits for an employee's family should the worst come to pass due to their job duties.
Who Should Get Worker's Compensation?
Illinois law requires that you carry workers' compensation insurance, but some exceptions exist. For example, if all your employees are contractors, you may be exempt from coverage. To learn more about legal exemptions, contact an attorney experienced with worker's compensation claims to discuss the qualifications and ramifications of not carrying the insurance; they can also advise you on what to cover outside of the legal requirements based on your field.
How Workers' Compensation Insurance Protects Businesses
Workers' Compensation Insurance protects businesses from lawsuits. If an employee is injured on the job or becomes ill as a result, workers' compensation insurance helps cover their medical expenses and replaces a portion of their lost wages. This means that they cannot sue your business for damages.
This protection may also apply to employees with pre-existing conditions (such as diabetes or high blood pressure); coverage depends on the circumstances of their injury or illness, not their pre-existing condition.
Shopping for the Right Workers' Compensation Insurance Policy
Make sure that the policy covers all of your employees. Some companies may try to sell you a "tailored" approach that only covers specific jobs or positions within your company; this can be very dangerous if a non-covered position experiences an injury. Worker's compensation handles everything from broken bones to repetitive stress conditions like carpal tunnel or lower back injuries, so there is no reason not to cover all job titles.
Secondly, make sure that any exclusions (things not covered) are clearly spelled out in writing so there are no surprises down the road. If needed, have a lawyer help you draft policy information, like what worker's compensation will and will not cover. Working with your insurance carrier and a lawyer can protect your business and ensure your employees understand their rights.
Consider working with an insurance broker instead of shopping for insurance yourself.
The Benefits of Working with an Insurance Broker for Workers' Compensation Insurance
If you're looking for a way to ensure that all of your bases are covered when protecting yourself from lawsuits and other legal action related to workplace injuries or illness, working with an insurance broker is worth exploring further. Here are some reasons why:
Accessibility: An experienced broker can provide access to multiple carriers who offer different types of policies based on what type of work environment they're in (e.g., manufacturing or retail), as well as how many employees they have working under them.
Expertise: Brokers know precisely what kind of coverage is needed based on industry standards, so there won't be any surprises.
Customization: Because every business operates differently, certain details about each policy (like deductibles) may need adjusting before purchase. Your broker can help negotiate.
How to File a Workers' Compensation Claim in Illinois
As your company grows, ensure that everyone in a management or supervisor position is aware of how to proceed if one of their employees is injured or becomes ill.
Your employee has 45 days to report the injury or diagnosis; the sooner, the better. Some injuries like whiplash and back strain are not readily apparent, so they may delay informing you. Once they do, however, provide a form from your insurance company. This form should request information like the injury and what the employee remembers about how they sustained it— or the health condition and what working conditions their medical provider believes led to it.
If your employee mentions retaining a lawyer, encourage it. Lawyers help ensure paperwork is filled properly, no deadlines are missed, and your employee's rights are protected. They may also need representation if the insurance carrier denies their claim. This is nothing against you and everything about your employee wanting to be sure nothing is missed and that they have what they need to recover.
Workers' Compensation Insurance Resources in Chicago
Illinois Workers' Compensation Commission
This state agency handles all things related to workers' compensation in Illinois. They offer a wide range of services and resources, including forms and publications, training programs, and an online database where you can look up claims information.
Illinois Department of Insurance
The Department of Insurance regulates insurers offering workers' compensation coverage so they can help ensure that your policy meets certain standards set forth by law (and ensure it's not too expensive). You can contact them directly if you need assistance filing a claim or getting answers about specific aspects of your policy; otherwise, their website offers plenty of helpful information about what exactly constitutes workers' compensation coverage, along with links to other useful resources like those listed above.
Local Worker's Compensation Attorneys
Personal injury law firms are great resources. They can ensure your policy provider covers all the legally required bases and walk you through what types of compensation claims they help with so you can go above and beyond the minimum coverage to protect yourself and your employees.
Conclusion
Even if you are exempt from legal requirements, running a business without workers' compensation insurance is risky. You could be liable for any injuries that occur on the job and even face criminal charges if someone gets hurt or dies because of your negligence. It's best to consult with brokers, lawyers, and the commission to ensure you cover your bases. Your employees will also see that you are concerned with their well-being, leading to a happier workspace.
