Workers' Compensation and Other Coverages
The grand bargain
Workers' compensation is a no-fault system: employees give up the right to sue the employer in tort, and in exchange receive statutory benefits regardless of fault. This is the exclusive remedy. Illinois administers the system through the Illinois Workers' Compensation Commission under the Illinois Workers' Compensation Act.
Benefits
Know the benefit categories: medical (unlimited and paid in full in Illinois), temporary total disability (TTD), permanent partial disability (PPD), permanent total disability (PTD), death benefits and burial expenses, and vocational rehabilitation. TTD is generally two-thirds (66 2/3%) of the average weekly wage, subject to a statutory maximum and minimum. Statutes of limitation apply - generally three years from the date of accident for injury claims, with different rules for occupational disease.
The policy structure
A workers' compensation policy has three parts: Part One pays all statutory benefits with no dollar limit; Part Two is employers liability (suits not covered by the statute, with a stated limit); Part Three lists other states coverage. Sole proprietors and partners are excluded unless they elect coverage; corporate officers are generally included.
Other coverages
Expect questions on commercial umbrella/excess (drops down over a self-insured retention), professional liability and EPLI/D&O, cyber, surety bonds (a three-party guarantee, not insurance), and federal alternatives: FELA, Jones Act, Longshore, and the Defense Base Act.
Worked example: An injured worker earns an average weekly wage of $900. TTD = $900 × 2/3 = $600 per week, subject to the state's maximum weekly benefit.