Illinois Workers' Comp Rate Calculator

Workers' comp in Illinois: what's different

Illinois has no state fund. Employers buy from a private insurer, join a group pool, or self-insure with approval from the Illinois Workers' Compensation Commission (IWCC), which also resolves claim disputes. Since July 2021, coverage enforcement has sat inside the Illinois Department of Insurance (DOI), which approves rates. NCCI, the rating organization, files both advisory rates and loss costs here.

Who must carry coverage

The IWCC's rule of thumb is simple: one employee, even a part-time one, means you need a policy. Coverage starts the moment someone is hired, with no waiting period. Family members count too, unless they are corporate officers or work on a small farm.

Section 3 of the Act applies automatically to businesses it calls "extra hazardous," including building, repairing, or demolishing any structure and construction, excavating, or electrical work.

Exceptions and elections:

• Corporate officers. A bona fide president, vice president, secretary, or treasurer may withdraw from coverage by written notice to the insurer. The IWCC has no opt-out form.
• Sole proprietors, partners, and LLC members may choose not to cover themselves. NCCI's Illinois plan instructions say owners in an extra hazardous business are covered automatically unless they give the carrier that written notice.
• Domestic workers are covered only in a household that employs them 40 or more hours a week for 13 or more weeks in a year.
• Farms using fewer than 400 working days of farm labor per quarter in the prior year are outside the Act.

Out-of-state firms that do any work at all in Illinois need a policy that lists Illinois, even if every worker lives elsewhere.

General contractors carry extra exposure. If a subcontractor has no insurance, the contractor owes compensation to that subcontractor's injured workers and can then try to recover the cost from the sub. Construction firms must also pay premium at the rates for the job's Illinois location, or face fines up to $1,000 per day of work, capped at $50,000 per project.

Where coverage comes from

The IWCC says workers' comp insurance in Illinois is sold in the private sector. Section 4 of the Act allows self-insurance or a group workers' compensation pool instead. Self-insurers apply every year with a current financial statement, at least 60 days before the requested start date, and the Commission can demand a bond if the financials fall short.

Who sets rates

NCCI is licensed to file advisory rates, loss costs, and assigned risk rates for insurers in Illinois. Since February 1, 2019, rate and rule filings must be approved by the DOI before anyone uses them. A filing counts as approved if the Director does not reject it within 30 days.

A carrier can adopt NCCI's filing as is or, with the Director's approval, deviate from it. One that starts from NCCI's loss costs must tell the DOI what factor it adds for expenses and profit. If a renewal premium will land more than 5% above the rate recommendation on file, for reasons other than higher loss costs, more payroll, or your experience mod, the insurer must give at least 30 days' written notice with a reason.

NCCI filed its January 1, 2026 proposal on July 30, 2025: a 1.2% loss cost cut, a 0.1% advisory rate cut, and a 0.8% increase for assigned risk rates. Its proposal for January 1, 2027, filed July 30, 2026, would trim loss costs by 0.5%, lift advisory rates by 0.3%, and raise assigned risk rates by 3.1%. Both are proposals. A filing counts as approved if the Director does not reject it within 30 days, but we did not find a published DOI decision on either one on the DOI website (checked October 2026).

Experience rating

NCCI's experience rating guide does not list Illinois among the states where its plan does not apply or a separate bureau computes mods, which points to NCCI as the source of Illinois mods. We did not find the eligibility threshold on a public official source.

If no insurer will write you

The market of last resort is the Illinois assigned risk plan, administered by NCCI (800-622-4123). You need two refusals, one from your current carrier if you have one. The IWCC says premiums there run about 50% higher than the voluntary market. Plan policies can carry an Assigned Risk Adjustment Program (ARAP) surcharge of up to 1.25 times modified premium. Employers at or above $250,000 of standard premium (as that plan measures it) fall under a mandatory Loss Sensitive Rating Plan.

Penalties for going uninsured

DOI investigators can write a citation with a fine based on how long you went without coverage. The Act's current text sets it at $500 to $10,000, though a second printed version of Section 4 still shows the older $2,500 cap. You then have 10 days to pay it and show the DOI proof of insurance.

For a knowing and willful failure, the IWCC can impose a civil penalty of up to $500 a day, with a $10,000 minimum. Knowingly ignoring a DOI citation can draw the same daily penalty. A repeat violation doubles the minimums, and the penalty then runs up to $1,000 a day with a $20,000 minimum. If the business does not pay within 30 days of the final order, officers, partners, or LLC members found at fault become personally liable.

Criminal charges can apply to the owner, corporate officers and directors, partners, and LLC members. Negligent failure is a Class A misdemeanor, knowing failure is a Class 4 felony, and each day is a separate offense. These charges do not reach officers or directors of publicly owned corporations.

After a hearing, the Commission can serve a work-stop order that halts all operations at the job site. For extra hazardous businesses, a Commissioner can issue an emergency order before any hearing. The order lifts once you show proof of insurance.

A knowingly uninsured employer also loses the Act's protection: an injured worker may sue in civil court, where the employer must prove it was not negligent. If an uninsured employer does not pay an award, the Injured Workers' Benefit Fund can pay the worker, and the employer must pay the fund back.

Your ongoing obligations

• Post two notices. Display the IWCC's employee notice. Also post a notice giving your insurer's name and address, the policy number, and its effective and end dates.
• Report injuries. Report a work death to the IWCC within 2 working days. For any other injury or illness costing more than 3 scheduled workdays, the Act says the report is made between the 15th and 25th of each month, unless an IWCC rule requires it sooner. The report is Form 45, the Employer's First Report of Injury, and the IWCC takes it electronically. Not filing is a petty offense.
• Never charge workers for coverage. Withholding wages to pay the premium is a Class B misdemeanor.
• Watch for cancellations. Your insurer certifies coverage to the IWCC within 5 days of the policy start. A cancellation takes effect no sooner than 10 days after the IWCC gets notice, unless replacement coverage starts first. The IWCC offers an online employer coverage search.

Worked example: how the calculator estimates premium

Premium = (payroll / 100) x rate per $100 x experience mod

Illinois class rates and loss costs are not posted on a public DOI, IWCC, or NCCI page we could find, so every number below is illustrative. Roofing is NCCI class 5551.

• Annual roofing payroll (hypothetical): $250,000
• Rate per $100 (illustrative, not a filed Illinois figure): $12.50
• Experience mod (hypothetical): 1.10

Step by step

1. Payroll in hundreds: $250,000 / 100 = 2,500
2. Manual premium: 2,500 x $12.50 = $31,250
3. Apply the mod: $31,250 x 1.10 = $34,375

Swap in the rate per $100 from your own quote. A carrier that starts from NCCI loss costs adds its own filed factor for expenses and profit.

Frequently asked questions

Official sources

• 820 ILCS 305, Workers' Compensation Act (full text, Illinois General Assembly)
• 215 ILCS 5/457, rate filings
• 215 ILCS 5/462a, premium increase notice
• IWCC, Insurance (coverage FAQ)
• IWCC, About the Commission
• IWCC, Handbook on Workers' Compensation and Occupational Diseases
• IWCC, Insurance Compliance brochure for employers
• IWCC, Accident reporting (EDI)
• IWCC, Self-Insurance
• Illinois DOI, Workers' Compensation Insurance Compliance
• Illinois DOI, Company Bulletin 2025-15 (WC rate filings)
• Illinois DOI, FY 2025 Workers' Compensation Fraud and Compliance Unit annual report
• NCCI, Summary of the Proposed Illinois Filings Effective January 1, 2026
• NCCI, Summary of the Proposed Illinois Filings Effective January 1, 2027
• NCCI, WCIP State Instructions for Illinois
• NCCI, ABCs of Experience Rating
• NCCI, AIS 2026 State of the Line presentation (code 5551 label)

Sources accessed 2026-10-16.

This is general information, not legal advice. Confirm details with the Illinois Workers' Compensation Commission.

Reviewer: Sam Newland, CFP, Founder of Benefitra. Last updated October 17, 2026. How the calculator works. Editorial policy.