Updated: December 19, 2024
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To identify the best workers’ compensation insurance companies across Illinois, MoneyGeek evaluated providers based on affordability, customer satisfaction, financial stability and the online quote process. Our overall winner, biBERK, outranked its competitors on most of these measures.
Small businesses in Illinois with one or more employees are required by state law to have workers’ compensation insurance. This serves to protect business owners from legal and financial liabilities.
Based on the content provided, the best workers' compensation insurance provider in Illinois is biBERK. Here's an overview of their ranking, average monthly premium, financial stability, and customer service:
Ranking
- Overall Score: 97 out of 100 on MoneyGeek's evaluation.
Average Monthly Premium
- Micro Businesses: $56 per month (for businesses with 5 employees and an annual payroll of $312,500).
- Small Businesses: $121 per month (for businesses with 20 employees).
- Midsize Businesses: $464 per month (for businesses with 100 employees and an annual payroll of $6,250,000).
Financial Stability
- BiBERK is recognized for strong financial stability, which is essential for ensuring claims are paid and coverage is reliable over time.
Customer Service
- BiBERK is noted for excelling in customer satisfaction, indicating a high level of service quality and support for policyholders.
Summary
BiBERK stands out as the best workers' compensation insurance provider in Illinois due to its balanced offering of affordability, financial stability, and excellent customer service, making it an ideal choice for businesses seeking comprehensive coverage at competitive rates. They provide competitive pricing for businesses of different sizes, from micro to midsize enterprises, ensuring tailored coverage to meet specific business needs.
For cost-conscious businesses in Illinois, Pie Insurance emerges as the cheapest provider for workers' compensation insurance. Offering an average monthly premium of $100 for companies with 20 employees and an annual payroll of $1,250,000, it provides a highly affordable option compared to the state's average premium of $186 per month.
Choosing Pie Insurance is prudent for small businesses that prioritize cost efficiency. While other providers like biBERK offer competitive rates and added benefits, Pie Insurance specifically caters to businesses looking to minimize expenses without sacrificing essential coverage. This makes it a solid choice for those needing a financial safety net against workplace accidents while maintaining tighter budget constraints. By opting for Pie Insurance, business owners can ensure compliance with state regulations and protect against potential legal and financial liabilities at the lowest cost available in the market.
Workers' compensation insurance premiums in Illinois, as in other states, are influenced by several key factors. Understanding these factors can help business owners estimate their potential insurance costs and choose the best provider for their needs.
1. Annual Payroll: Payroll is a significant determinant of workers' compensation premiums. Insurers often calculate premiums based on the total payroll because it represents the scale of potential risk and liability associated with covering employees.
2. Employee Headcount: The number of employees in a business can affect insurance costs. Generally, more employees mean higher premiums due to increased exposure to potential workplace injuries. However, for micro businesses (those with fewer than 10 employees), costs tend to be lower because of the reduced scale of operations and risk.
3. Nature of Business: Rates can vary significantly depending on the industry and nature of the business. Industries with higher inherent risks, such as construction or manufacturing, tend to have higher premiums compared to those with lower risks, like office-based businesses.
4. Employee Classification: The classification of employees based on their job duties (often referred to as employee class codes) plays a critical role. Different job roles have different levels of risk associated with them, and insurers adjust premiums accordingly.
5. Claims History: A business's history of previous claims can significantly affect premiums. A history of frequent or severe claims may indicate higher risk, leading insurers to charge higher premiums as a precaution.
6. State Regulations: Illinois state regulations also impact premium costs. The state's laws dictate certain minimum coverage requirements, and local market conditions can affect the availability and affordability of policies.
7. Insurance Provider: Different insurance companies may have different underwriting criteria, discounts, and pricing. For instance, biBERK offers competitive rates and coverage options that may be more attractive for certain businesses in Illinois, particularly those looking for both comprehensive and affordable plans.
In Illinois, for example, small businesses are required to have workers' compensation insurance by law, which protects owners from legal and financial liabilities arising from workplace injuries. The average cost for a business with 20 employees is around $186 per month, but this can vary based on the factors mentioned above. BiBERK, for instance, offers competitive rates, with average premiums varying based on business size and payroll.
Ultimately, finding the right workers' compensation insurance involves balancing affordability with adequate coverage, considering the above factors as they pertain to your specific business scenario. For detailed rankings and pricing, businesses are encouraged to compare different providers across these parameters to choose a policy that best suits their needs.
Why Trust MoneyGeek? We collected 677 workers’ compensation insurance quotes and analyzed cost information alongside customer satisfaction and financial stability reports to determine the best workers’ compensation insurance companies for small businesses in Illinois.
Coverage costs and company information for workers' compensation insurance providers in Illinois were last updated in 2023.
With a MoneyGeek score of 97 out of 100, biBerk ranks as the overall best workers’ compensation insurance provider in Illinois based on our study. Its workers’ comp policies cost an average of $121 per month for companies with 20 employees. This rate can change depending on several factors, such as the nature of your business and the number of staff you have.
How was this MoneyGeek score calculated?
MoneyGeek used the following weights to score and rank insurers:
MoneyGeek used the following business profile to gather quotes:
biBERK ranks as the best workers’ compensation insurance company in Illinois, with policies averaging $121 monthly. It received the highest possible financial stability rating from AM Best which is an A++ score. biBERK also boasts of exceptional customer satisfaction, with its low rate of complaints. Small business owners can quickly get a quote, but biBERK’s average monthly premiums cost around $21 more than the cheapest provider.
Thimble excels in its affordability, streamlined online quote process and financial stability. It ranks as the third-cheapest workers' comp insurance provider in our study, with rates averaging $126 per month or $1,395 per year. Obtaining a quote online is quick, taking less than a minute and a half. However, Thimble received a higher rate of customer complaints compared to other companies, as indicated by its NAIC complaint index, suggesting the need for enhanced ongoing customer care. It also has average financial stability, indicating it should be able to pay out valid claims.
Small business owners who are focused on cost above all other factors should consider purchasing workers’ compensation insurance from Pie Insurance. It is the cheapest provider in Illinois, with premiums averaging $100 per month for businesses with 20 employees and $1,250,000 in payroll costs per year.
Pie Insurance is our top pick for the most affordable workers’ comp insurance provider in Illinois, with policies costing an average of $100 per month or $1,190 per year for businesses with 20 employees and $1,250,000 in annual payroll costs. Aside from being the cheapest provider, Pie Insurance also has the fastest online quote process among the insurers that we evaluated. Getting a quote takes less than a minute.
It’s important to note that Pie has a very high rate of customer complaints and a relatively lower financial stability rating of A- from AM Best.
Don’t miss our company rankings based on their average monthly costs to find the cheapest insurer in Illinois. The cheapest provider for you may vary [depending on several factors] (#factors-that-impact-workers-comp).
| Pie | $100 | $1,190 |
| biBERK | $121 | $1,277 |
| Thimble | $126 | $1,395 |
| Nationwide | $234 | $2,813 |
| The Hartford | $264 | $3,167 |
| Next | $269 | $3,230 |
With an average monthly premium of $56, biBERK is the best workers’ comp provider for micro businesses in Illinois. Our analysis is based on quotes for a business with five employees and an annual payroll amount of $312,500.
Companies with less than 10 employees are considered micro businesses. Having more employees can push up your workers’ compensation premium, but your payroll costs have a much greater impact on your rates.
We recommend biBERK as the workers’ compensation insurance provider of choice for micro businesses in Illinois that have five employees and annual payroll costs of $312,500. Expect coverage to cost approximately $56 per month or $595 per year, the second-most affordable option among the insurers in our study.
biBERK has obtained the highest financial stability rating of A++ from AM Best, indicating it can pay out valid claims. It also maintains a low rate of customer complaints, and its online quote process takes less than a minute and a half to complete.
The best workers’ compensation provider for midsize businesses in Illinois that have approximately 100 employees is biBERK, which has an average monthly premium of $464.
When calculating rates, insurers usually take into account employee headcount, but payroll costs play a much bigger role. Our recommendations for the best workers’ comp for midsize businesses are based on quotes for a business with 100 employees and an annual payroll of $6,250,000.
biBERK is our top pick for workers’ compensation for medium-sized companies in Illinois. Coverage for businesses with 100 employees and annual payroll costs of $6,250,000 is priced at $464 per month or $4,918 per year. This is around $21 per month more than the most affordable option, Pie Insurance. Although it isn’t the cheapest, biBERK offers the most optimal balance of strong financial stability, superior customer service, a fast online quote process (taking less than a minute and a half) and affordability out of all the insurers that we reviewed.
Workers’ compensation insurance in Illinois costs an average of $186 per month for businesses with 20 employees. This is $18 more than the national average cost of $168 per month. We collected quotes based on a sample policy with the following limits:
These limits mean that the policy will cover up to $1 million in total liability costs for all accidents within the policy period. Coverage is also capped at $1 million per accident and $1 million per employee, which means that you’ll have to pay out of pocket for costs (such as medical bills, lost wages or legal fees) exceeding these limits.
Your annual payroll and employee headcount are the key determinants of your workers’ comp insurance costs. The table below shows how the average cost of workers’ comp in Illinois varies based on the number of employees.
How was this cost calculated?
To find the average cost of workers’ compensation insurance in Arkansas, we gathered quotes for three types of software development businesses:
| 5 | $74 | $858 |
| 20 | $186 | $2,179 |
| 100 | $634 | $7,454 |
Workers’ compensation insurance costs can vary widely depending on several factors that are unique to your business. In addition to state regulations, payroll costs, employee headcount, employee class code and history of previous claims are likely to have the most impact on premiums.
The state determines a set rate for every $100 of payroll, which insurers then charge. Businesses with high payroll expenses typically face higher premiums than those with lower payroll costs. We found that in 2022, Illinois charged an average of $1.39 per $100 of payroll, which places it as the 19th most expensive state to get workers’ comp insurance.
Employee headcount has a significant impact on your premiums. Workers’ comp coverage costs more if you have more employees since there’s an increased likelihood of having at least one of your staff getting sick or injured on the job.
Employees are given a class code that represents the type of work they perform. This employee class code serves as the basis for the rate that’s charged for every $100 of payroll. Industries that have a higher risk of injury, like construction, usually pay higher rates than those with lower risks, such as consulting.
Businesses that have filed workers’ compensation claims are usually viewed as riskier to insure and are charged higher premiums. Each year, Illinois gets a significant number of workers’ comp claims. The most recent data from the U.S. Bureau of Labor Statistics (BLS) was for 2021, which recorded 102,000 cases of private-industry nonfatal workplace injuries and illnesses within the private industry in Illinois. This represents a significant percentage of the more than 2.6 million nonfatal workplace injuries and illnesses within the private industry that occurred across the U.S. in 2021.
Workers’ compensation insurance is required for businesses in Illinois that have at least one full-time or part-time employee. However, certain categories of workers may be exempt.
Whether or not your business is exempted from getting workers’ comp insurance, we still recommend it as a practical way to protect your company from liability claims. This financial safety net will protect you from expenses that may arise from lawsuits and medical bills if any of your employees gets injured or sick on the job.
In Illinois, employers who don’t provide the legally required workers’ compensation insurance may face criminal and civil penalties, including:
Workers’ comp insurance protects employers while also providing benefits for employees who experience a work-related injury or illness. It covers medical expenses, vocational rehabilitation, compensation for lost wages and death benefits.
For business owners (who are the policyholders for workers’ comp insurance), this type of protection is a must-have since liability costs for even one workplace injury can easily add up and dig a massive hole in your company’s financial statement. It’s a wise investment in your company’s financial security.
You can visit the Illinois Workers’ Compensation Commission (IWCC) to find resources, file claims, get status information for open and closed cases and report fraudulent situations.
To file for workers’ comp benefits, an employee must complete the IWCC Application for Adjustment of Claim (Application for Benefits) within three years of the date of the workplace injury. Have this form notarized, then send a copy to your employer, three copies to IWCC and keep a copy for your personal records. You’re given 45 days to notify your employer of your workplace injury or illness and three years to file a claim with the IWCC.
The right workers’ compensation insurance provider can give your small business sufficient coverage within your budget. Here are our answers to frequently asked questions about the best workers’ comp in Illinois.
biBERK’s relatively affordable premiums, low rate of customer complaints and strong financial stability rating from AM Best make it the best workers’ compensation insurance in Illinois. Its policies cost an average of $121 per month for companies with 20 employees. Keep in mind that your actual premium may vary depending on factors that are unique to your business, such as your industry, payroll amount and employee headcount.
Pie Insurance ranks as the cheapest workers’ compensation insurance provider in MoneyGeek’s study, with policies costing an average of $100 per month for businesses with 20 employees and $1,250,000 in annual payroll costs. The cheapest insurer for you depends on several factors, including your employee headcount, payroll costs, industry and location.
Yes, all businesses in Illinois that have at least one full-time or part-time employee are required to have workers’ compensation insurance.
Workers’ compensation insurance in Illinois costs an average of $186 per month for businesses with 20 employees. This is more expensive than the national average cost of $168 per month.
About Melissa Wylie
Melissa Wylie is the Content and SEO Manager at MoneyGeek, with nearly a decade of editorial experience and six years of work in financial content focused on small businesses. She previously held SEO positions at Bankrate and LendingTree, with bylines on ValuePenguin and MagnifyMoney.
Wylie has a journalism degree from the University of North Texas. Her strong foundation in journalism helps her craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.
