Workers' Compensation by state

Workers' compensation requirements in Illinois

Required

Direct answer

Does Illinois require workers' compensation insurance?

Yes. Illinois requires workers' compensation coverage once a business has one or more employees, under the Illinois Workers' Compensation Act. Illinois requires employers with one or more employees, whether part-time or full-time, to carry workers' compensation coverage. Certain hazardous or extra-hazardous operations are covered from the first employee without exception.

Reviewed by Cornerstone Staff28 years of financial services state licensing experienceLast verified July 29, 2026

How the mandate works

Illinois requires employers with one or more employees, whether part-time or full-time, to carry workers' compensation coverage. Certain hazardous or extra-hazardous operations are covered from the first employee without exception.

Coverage trigger: One or more employees
If you go without coverage: Knowingly failing to provide required coverage can be a felony, with daily fines, work-stop orders, and personal liability for corporate officers.

Notable exemptions

Exemptions are narrow and fact-specific; confirm your situation with the regulator or an agent before relying on one.

Sole proprietors, partners, and some corporate officers who may elect out
Certain agricultural enterprises below statutory size or payroll
Some real estate salespersons and casual workers

Statutes and sources

Illinois Workers' Compensation Act

820 Ill. Comp. Stat. 305/1 et seq.

Regulator: Illinois Workers' Compensation Commission . Last verified 2026-07-29 from the official source .

Related Illinois compliance pages

Insurance

Illinois cyber liability

Licensing and bonds

Illinois licensing, bond, and regulator directory

Get Illinois coverage handled

Share a few details and an agent will respond within one business day.

Request a quote Talk to an agent