Workers' Compensation Insurance

Click here for information regarding the 2020-2021 separation of furloughed employee pay.

Workers’ compensation insurance benefits are available to employees who are injured or become ill as a result of a work-related incident. If one of your employees is injured on the job and is medically authorized to take time off from work, he or she will be reimbursed for lost wages and all of the medical expenses related to the treatment and rehabilitation.

Workers’ compensation is required by state law and non-compliance could result in costly fines.

Maintaining a safe workplace is vital and will consequently reduce your insurance costs. Here are some more ideas to help control costs:

  • Implement a return-to-work policy in which employees work modified duty until they are fully healthy to do their jobs.
  • Orient and train your employees on safe practices necessary for their job functions and tasks.
  • Insist that employee claims are reported promptly.
  • Investigate the cause of injuries and illnesses.

Information for Furloughed Employee Payroll

The COVID-19 pandemic has impacted a wide number of businesses throughout Illinois. If your business operations have been suspended due to the emergency orders your employees may be considered furloughed.

  • Furloughed employees are those who continued to receive wages but are performing no duties of any kind for their employer.
  • The National Council of Compensation Insurance has created class code 0012-01 for reporting furloughed wages.
  • Furloughed wages will not be used in the calculation of premium and experience ratings for workers' compensation.

To prepare for the 2020-2021 workers’ comp audit that will separate the furloughed employee pay and remove it from the calculation of workers’ compensation premiums, businesses must:

  • Maintain separate, accurate, and verifiable records that document changes in employees’ duties.
  • Segregate furloughed employee wages from regular payroll during specified time frames.

Pay-as-you-go

Pay as you go worker’s compensation insurance is a solution that many businesses use to manage the rising costs of this insurance.  Instead of charging large up-front costs, pay as you go workers’ compensation insurance allows companies to pay premiums as they pay their normal payroll.  This helps to defer much of the cost of workers’ compensation insurance, making it easier for business owners to manage their cash flow. 

Concklin Insurance works with many of the most reliable pay as you go workers’ compensation insurers.  Our advisors work to earn your trust by getting to know your unique situation and offer the right coverage for you and your business.  Call us at (630) 268-1600 to experience the difference three decades of experience can make for your business.

What are the benefits of Pay as You Go Workers’ Compensation Insurance?

Freeing up cash flow is a primary benefit to business owners, but there are many benefits that make life easier for busy professionals

  • Lower upfront cost allows growing companies to keep more of their cash
  • Insurance premiums are deducted automatically, helping ensure that your payments are on time and reducing your risk
  • Paying along with other payroll expenses allows for better budgeting
  • Eliminate the surprises associated with large lump sum payments

With so many things changing in the marketplace, many business owners find the predictable payments and the be the right option for their business.  Pay as you go is an exciting new option for this mandated insurance, providing business owners with the options they need to manage their finances responsibly

What is the right solution for your business?

The needs of a business vary widely, and as useful as pay as you go workers’ compensation insurance can be, it is not the only option.  The market has so many ways to meet business insurance needs, many professionals find it confusing.  Concklin Insurance helps you navigate the vast array of insurance options to tailor a workers’ compensation insurance plan that makes sense for your business. 

Additional Resources

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