In Illinois, whether a business owner or corporate officer is covered by workers' compensation — and whether they can change that — depends on the entity type and Illinois's own rules. Getting the election right affects both your protection and your premium. Here is how inclusion and exclusion work in Illinois, the form or filing to use, and what it means for your policy.
Who must carry workers' compensation in Illinois?
Mandatory once an employer has one employee, including part-time and employed family members; most employees are covered from day one.
Can owners and officers be included or excluded in Illinois?
| Sole proprietor | Not automatically an employee; may elect in or stay out. |
|---|---|
| Partners | May elect in or out. |
| LLC members | May elect in or out. |
| Corporate officers | Presumptively covered; a bona fide officer may voluntarily withdraw individually — except in extra-hazardous occupations (such as construction and trucking), where owners and officers cannot opt out. |
How to make the election in Illinois
- Our form: CWCO General Inclusion / Exclusion Form — records the election where Illinois does not publish its own form.
- Official source: Illinois Workers' Compensation Commission
Payroll counted for an included owner in Illinois
When an owner or officer is included, premium is figured on their payroll between a minimum and maximum (effective 1/1/2027), set by NCCI.
| Included owner/officer minimum | $1,550 per week |
|---|---|
| Included owner/officer maximum | $6,100 per week |
Included executive officer $1,550–$6,100/week; covered partners, sole proprietors, and LLC members at $79,800/year. NCCI-set, changes annually.
These amounts update periodically; we confirm the current figure for your policy.
Illinois's assigned-risk / residual market
An employer that can't secure workers' comp in the standard market can still get covered through Illinois WC assigned-risk plan (administered by NCCI). We market your risk to voluntary carriers first and turn to the residual market only as a last resort.
Related
Illinois business insurance · Workers' compensation coverage · Illinois Workers' Compensation Commission.
Frequently Asked Questions
Do business owners have to carry workers' comp on themselves in Illinois?
It depends on your entity and role. Not automatically an employee; may elect in or stay out. Presumptively covered; a bona fide officer may voluntarily withdraw individually — except in extra-hazardous occupations (such as construction and trucking), where owners and officers cannot opt out. Employees are always covered.
How do I include or exclude an owner from workers' comp in Illinois?
The right form, portal, or endorsement depends on your entity type. Illinois records the election on the policy with the carrier; our general inclusion/exclusion form documents it.
What payroll is used for an included owner in Illinois?
Included executive officer $1,550–$6,100/week; covered partners, sole proprietors, and LLC members at $79,800/year. NCCI-set, changes annually. We confirm the current figure for your policy.
Can Cory Washington & Co. handle my Illinois workers' comp election?
Yes. We confirm which rule applies to your entity, prepare the correct form or election, coordinate it with your carrier, and keep your workers' comp aligned with the rest of your program. Request a quote or a policy review and we'll take it from there.
This page is general educational information from Cory Washington & Co. LLC about how workers' compensation owner inclusion and exclusion works in this state. It is not legal, tax, or insurance advice and is not a determination of your eligibility or obligation. Workers' compensation laws, forms, payroll limits, and residual-market programs change and depend on your entity type, ownership, and operations. Confirm the current rules and amounts with your licensed advisor at Cory Washington & Co. LLC and the state agency before making any election.