NEXT is the best workers' compensation insurance provider in Illinois, scoring 98 out of 100. The company offers competitive rates at $191 per month while providing reliable customer service and comprehensive coverage options. biBerk and Nationwide are good runners-up that you should also consider.
Cheapest Workers' Comp Insurance in Illinois
Updated: June 4, 2025
Advertising & Editorial Disclosure
Key Takeaways
NEXT, biBerk, Nationwide, Pie and Thimble are the best cheap workers' comp insurance providers in Illinois.
For most small businesses in Illinois, workers' compensation coverage costs around $901 per year or $78 per month.
Workers' comp insurance is required in Illinois for all companies with employees to cover expenses when employees sustain injuries or illnesses during business activities.
Best Cheap Workers’ Comp Insurance Companies in Illinois
| Next | 98 | $191 |
| biBERK | 97 | $214 |
| Nationwide | 94 | $270 |
| Pie | 93 | $193 |
| Thimble | 93 | $242 |
| The Hartford | 87 | $531 |
*Rates and scores are for software development businesses with small (five employees), medium (20 employees) and large (100 employees) operations, aggregated for an overall best recommendation.
NEXT: Best Overall
pros
Most affordable rates in Illinois
Great customer reputation
24/7 customer support
cons
Not the most affordable for larger small businesses
COMPANY HIGHLIGHTS
NEXT is the best business insurance provider in Illinois due to its combination of competitive pricing and superior service quality. The company maintains a 4.7/5 customer rating while offering instant digital certificate access, 24/7 chat support and the most savings overall.
How Much Is Workers' Comp Insurance in Illinois?
For businesses in Illinois, the cost of workers' compensation rates can range from $901 to $7,826 annually. However, this only represents software development companies. Your rates will vary widely depending on the number of employees, the risk of your industry, the work your employees do individually and your claims history.
| Larger small businesses | $666 | $7,826 |
| Businesses with five or less employees | $78 | $901 |
| Medium-size small businesses | $195 | $2,288 |
Factors That Impact Workers’ Compensation Costs in Illinois
The cost of workers' compensation insurance varies for each business, depending on several factors that influence coverage costs, including industry type, number of employees and claims history.
Payroll costs
Workers' compensation premiums are calculated per $100 of payroll. Businesses with larger payrolls pay proportionally higher premiums than those with smaller wage expenses.
Number of employees
Companies with a large number of employees face a higher risk of employee injury, which can increase insurance premiums.
Employee class code
A class code identifies the type of work employees do. This code sets the rate charged for every $100 of payroll. High-risk industries like construction, mining and manufacturing typically have higher rates than lower-risk fields such as consulting, accounting and software development.
Previous claims
A history of workers' compensation claims can increase your premium. According to the U.S. Bureau of Labor Statistics, Illinois reported 101,400 recordable nonfatal cases in private industry in 2023. Nationally, there were 2.6 million recordable nonfatal cases in private industry.
Illinois Workers' Comp Insurance: Buyer's Guide
Navigating business insurance is often a complicated task. We've broken down how to get the best workers' comp coverage, who needs it and what this type of policy covers to guide you.
How to Get the Best Workers' Comp Insurance in Illinois
Below are the best steps to take to get the best workers' comp policy possible for your organization.
- 1
Learn about required coverages and options
Begin by researching your state's specific workers' compensation regulations, as requirements vary significantly based on your industry, company size and claims history. Then, consult with a business insurance agent before purchasing to ensure appropriate coverage levels and avoid over- or under-insuring your business.
- 2
Research costs and providers
Research average costs and providers for your specific business to determine which companies to get quotes from. Also, consider whether self-insurance is possible in your state.
- 3
Consult similar businesses
Connect with other local businesses, particularly those in your industry, to learn about their workers' compensation provider experiences, coverage decisions and costs for valuable peer insights that can inform your insurance selection.
- 4
Compare multiple providers through different means
Get multiple quotes and compare providers on equal terms to find the best deal. Prices vary depending on how you get quotes: by using online comparison sites or by speaking with an agent. Use different methods and contact various companies to gain the most balanced view of what's best for your business.
Do You Need Workers’ Compensation Insurance in Illinois?
Every business in Illinois with employees, including businesses with part-time employees, is required to carry workers' compensation insurance. Sole proprietors, business partners, corporate officers and LLC members may exempt themselves from coverage.
WORKERS’ COMP PENALTIES IN ILLINOIS
Illinois employers must comply with workers' compensation laws, including providing minimum coverage. Those who don't can face severe penalties, such as:
- Daily fines: Up to $500 per day of noncompliance, with a minimum fine of $10,000.
- Personal liability: Corporate officers can face personal financial responsibility if their company doesn't pay the penalty.
- Criminal charges: Class A misdemeanor if negligent (fine of $2,500 and up to 12 months imprisonment), or Class 4 felony if they knowingly fail to obtain coverage.
- Work-stop orders: The Illinois Workers' Compensation Commission may issue orders requiring cessation of all business operations until proof of insurance is provided.
- Civil lawsuits: Injured employees may sue the employer in civil court where damages are unlimited, as the employer loses protection provided by the Workers' Compensation Act.
- Repeat violations: Higher fines are assessed for employers found noncompliant more than once.
What Does Workers’ Compensation Insurance Cover in Illinois?
Workers' compensation insurance provides vital benefits to employees experiencing work-related injuries or illnesses. This coverage usually includes medical care, disability benefits and lost wages, paying 66% of weekly wages according to Illinois law. It protects employees and defends businesses against legal claims related to workplace injuries.
Best Workers' Compensation Insurance Illinois: Bottom Line
The top three best and affordable workers' comp insurance providers in Illinois are NEXT, biBerk and Nationwide. While these companies are our recommendations, compare rates yourself and consult similar businesses in your industry to get the best deal.
Workers' Comp Insurance Illinois: FAQ
Below are answers to frequently asked questions about Illinois workers' comp insurance from our MoneyGeek experts:
Which company has the best workers’ compensation insurance in Illinois?
In Illinois, NEXT is the best workers’ compensation insurance provider due to its competitive pricing and customer satisfaction. It offers workers' compensation insurance at around $191 per month for most small businesses.
Does Illinois require businesses to have workers’ compensation insurance?
In Illinois, workers' compensation insurance is compulsory for every business entity with employees. However, individual sole proprietors, partners and fully owning corporate officers can choose not to participate.
How much does workers’ compensation insurance cost in Illinois?
In Illinois, the average monthly cost for workers' compensation insurance for medium-sized businesses is $195.
How We Rated Workers' Comp Insurance Companies in Illinois
MoneyGeek calculated workers' compensation insurance rates using a software development business with five, 20 and 100 employees to represent various organization sizes.
Our scoring methodology included:
- Affordability (60%): Overall cost compared to other providers and different business profiles
- Customer experience (30%): Ratings from actual customers, J.D. Power studies, AM Best financial stability ratings and our team's experience with quote processes
- Coverage (10%): Additional options beyond standard offerings and breadth of industries served
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- NEXT. "Customer Reviews." Accessed June 4, 2025.
- U.S. Bureau of Labor Statistics. "Employer-Reported Workplace Injuries and Illnesses in Illinois — 2023." Accessed June 4, 2025.