General Contractors
On-site injury protection
The Compliance Guard
Mandatory Protection for Illinois Businesses
Avoid the $500/day fine and protect your team from workplace injuries. Workers' Compensation coverage for Illinois employers, contractors, and small businesses—the insurance that keeps you legal and your employees safe.
State Mandate
Illinois Required
The $500 Daily Fine Is Real
The Illinois Workers' Compensation Commission (IWCC) doesn't play games. Operating without coverage means a minimum $10,000 fine—or $500 for every single day you're uninsured.
This applies even if you only have ONE part-time employee. Even if no one gets hurt. The State audits. They check. And when they catch you, the penalties are devastating—plus you're personally liable for any injuries.
Retail & Restaurants
Slip, fall, burn coverage
Transportation
Driver injury claims
Healthcare
Patient handling injuries
Manufacturing
Equipment accidents
Cleaning Services
Chemical & strain injuries
Which Policy Fits You?
Standard Staff Policy
For businesses with W-2 employees. This is the classic Workers' Comp policy that covers injuries on the job and satisfies Illinois state law requirements.
Ask about "Pay-As-You-Go" billing to improve cash flow—no big down payment required, and you only pay for actual payroll each period. Perfect for seasonal businesses or companies with fluctuating staff levels.
Policy Options We Offer
- Standard Workers' Comp (W-2 Staff)
- Pay-As-You-Go Billing Plans
- Ghost Policies (Zero Payroll COI)
- Corporate Officer Exemptions
- High-Risk Class Codes (Roofing, Demo)
- E-Mod Improvement Programs
Three Policy Types Explained
Standard Staff Policy
For W-2 Employees: The traditional policy for businesses with payroll. Covers all work-related injuries and satisfies Illinois law. Ask about Pay-As-You-Go billing—sync with QuickBooks/Gusto and pay based on actual wages each period. No big down payment.
The Ghost Policy
The Contractor's Secret: A minimum-premium policy with zero payroll. It provides NO actual coverage for the owner—but it gives you the Certificate of Insurance (COI) that General Contractors require before you can step on their job site. Essential for solo subs.
Corporate Officer Exemption
Lower Your Premium: In Illinois, Corporate Officers (President, Secretary, etc.) can often Opt-Out of Workers' Comp coverage entirely. This removes their payroll from the calculation, significantly reducing your premium. We help you file the rejection form properly with the carrier.
Not Sure Which You Need? Most solo contractors need a Ghost Policy. Most businesses with employees need Standard. We'll analyze your situation and recommend the most cost-effective option that keeps you compliant.
1099 vs. Employee: The ABC Test
Just Because You Call Them "Contractors" Doesn't Mean Illinois Does
Critical Warning: The State of Illinois uses the strict ABC Test to determine worker classification. If your "independent contractors" don't pass ALL THREE prongs, they're legally employees—and you owe Workers' Comp coverage, back taxes, and penalties.
The test requires: (A) The worker is free from control, (B) Work is outside your usual business, (C) The worker has an independent trade. Fail any one, and you're exposed. When in doubt, insure them.
Prong A: Control
Free from direction and control over how work is performed.
Prong B: Business
Work is outside your usual course of business.
Prong C: Trade
Worker has independent business or trade.
Fail Any = Employee
Must pass ALL THREE or they're W-2 employees.
The Audit Process: Don't Fear It
Workers' Comp Is Provisional
Here's how it works: When you buy a Workers' Comp policy, you estimate your annual payroll. At the end of the policy year, the carrier conducts an audit to compare your actual payroll to your estimated payroll.
If you overpaid: You get a refund (or credit toward next year's premium).
If you underpaid: You receive a bill for the difference, which can be substantial if you hired more staff than expected.
The key is accurate estimation and keeping clean payroll records. We help you prepare so there are no surprises when audit season arrives.
Audit Preparation Checklist
- Keep quarterly payroll summaries—by employee and class code.
- Document subcontractor COIs—prove they have their own coverage.
- Separate officer payroll—if exempted, document the exclusion.
- Report mid-year changes—new hires or layoffs to adjust estimate.
Audit Math Example
Scenario: You estimated $200,000 in payroll. Rate: $2.50 per $100. You paid $5,000 in premium.
Audit finds: Actual payroll was $250,000 (you hired two new employees mid-year).
Result: $250K × $2.50/100 = $6,250. You owe an additional $1,250 at audit.
Flip side: If actual payroll was only $150,000, you'd get a $1,250 refund.
Pro Tip: With Pay-As-You-Go billing, you avoid big audit adjustments because you pay based on actual payroll each period.
Experience Modification Rate (E-Mod)
Lower Your Rate: If your E-Mod is greater than 1.0, you're paying a surcharge due to past claims. Every point above 1.0 increases your premium. We help you implement Safety Programs and Return-to-Work initiatives to drive that number down and save 20% or more on your Workers' Comp costs.
What Is Your E-Mod?
E-Mod = 1.0: You're paying the "average" rate for your industry and class code. No penalty, no discount.
E-Mod > 1.0: You have worse-than-average claims history. A 1.25 E-Mod means you pay 25% MORE than average.
E-Mod < 1.0: You have better-than-average claims history. A 0.85 E-Mod means you pay 15% LESS than average.
The Goal: Drive your E-Mod below 1.0 through safety programs, quick return-to-work, and claims management.
E-Mod Improvement Strategies
- Return-to-Work Program
- Safety Training & Documentation
- OSHA Compliance Reviews
- Claims Advocacy & Management
- Light Duty Job Assignments
Pay-As-You-Go Billing
Stop Guessing Your Payroll
Traditional Workers' Comp requires a big down payment (often 25-33% of annual premium) based on estimated payroll. Then you face audit adjustments at year-end. It's a cash flow nightmare for small businesses.
Pay-As-You-Go changes everything. We connect your policy directly to your payroll software (QuickBooks, Gusto, ADP, Paychex). Each pay period, you pay premiums based on exact wages—no guessing, no big deposits, no audit surprises.
No Down Payment
Pay Per Payroll
Minimal Audit Adjustments
Best For: Seasonal businesses, startups, companies with fluctuating staff, and anyone who hates big insurance deposits eating into working capital.
Payroll Integrations
- QuickBooks Online/Desktop
- Gusto
- ADP
- Paychex
- Premium calculated automatically each pay period
- Available from select carriers—ask us for details
Additional Coverage Options
Employer's Liability
Part B of your policy protects you if an injured employee sues beyond standard comp benefits—alleging gross negligence or unsafe conditions.
Commercial Auto Bundle
Package Workers' Comp with Commercial Auto for complete employee protection—whether injuries happen on-site or behind the wheel.
General Liability + WC
Most GCs require both before you can work. We bundle Workers' Comp with General Liability for one-stop compliance and often better rates.
Workers' Compensation FAQs
Generally yes. In Illinois, if family members are on payroll and receive wages, they typically must be covered under Workers' Compensation—just like any other employee. The main exception is if they are corporate officers who have formally elected to opt out of coverage by filing the appropriate rejection form with the carrier. Sole proprietors and partners can also sometimes exclude themselves, but employees (including family) usually cannot be excluded.
The Illinois Workers' Compensation Commission imposes severe penalties for non-compliance. The fine is a minimum of $10,000 or $500 per day that you operate without coverage—whichever is greater. Additionally, if an employee is injured while you're uninsured, you become personally liable for all medical bills, lost wages, and potential lawsuits. Corporate officers can be held individually responsible. It's one of the most serious business compliance issues in Illinois.
NO—a Ghost Policy provides ZERO actual coverage. It's a minimum-premium policy with no payroll listed, designed solely to generate a Certificate of Insurance (COI) that General Contractors require from subcontractors. If you get injured on the job with only a Ghost Policy, you receive no benefits—no medical coverage, no lost wages, nothing. Ghost Policies exist only to satisfy paperwork requirements, not to protect you. If you want actual coverage as a solo contractor, you need to add your own payroll to the policy.
Yes—specifically with Pay-As-You-Go plans. Traditional Workers' Comp requires a significant down payment (often 25-33% of annual premium) paid upfront. However, Pay-As-You-Go billing integrates with your payroll software (QuickBooks, Gusto, ADP) and charges premium based on actual wages each pay period. There's no large down payment, payments match your cash flow, and audit adjustments are minimal since you're paying on real payroll data throughout the year.
Workers' Comp premium is calculated using this formula: (Payroll ÷ 100) × Class Code Rate × Experience Mod. Your Class Code reflects the type of work (office work is cheap, roofing is expensive). Your Experience Mod (E-Mod) adjusts the rate based on your claims history—above 1.0 means you pay more, below 1.0 means you pay less. The premium is provisional, meaning it's adjusted after an annual audit of actual payroll.
At the end of your policy year, the insurance carrier reviews your actual payroll records to compare against your initial estimate. If actual payroll was higher than estimated, you'll owe additional premium. If it was lower, you'll receive a refund or credit. The auditor will request payroll reports, tax filings (941s), and subcontractor certificates. Keeping organized records throughout the year—and reporting significant payroll changes mid-term—helps avoid surprise bills.
Yes—we issue certificates within 60 minutes. General Contractors often require proof of Workers' Comp coverage before you can step on their job site. Once your policy is bound, we can issue Certificates of Insurance (COIs) the same day, naming the GC as certificate holder or adding them to the Waiver of Subrogation if required. Call (224) 616-9430 for urgent certificate requests.
Workers' Comp costs vary dramatically by industry. Office workers (Class Code 8810) might pay $0.20 per $100 of payroll, while roofers (Class Code 5551) might pay $25+ per $100. Ghost Policies for solo contractors with zero payroll start around $750-$1,500/year minimum premium. A typical small contractor with $100,000 in payroll might pay $2,000-$8,000 depending on trade. We shop multiple carriers to find the best rate for your specific class codes.
Get Compliant Before the $500/Day Fine Hits
Don't risk state penalties and personal liability. Get Workers' Compensation coverage that protects your employees and keeps your business legal—from standard policies to Ghost Policies and Pay-As-You-Go billing.
Serving Illinois Employers from 3945 W Devon Avenue, Chicago