IL| Bulletin 2025-22, issued by the Illinois Department of Insurance, reminds carriers and producers that virtually all Illinois employers, including those with even one part-time employee in the state, must secure workers’ compensation coverage for their entire Illinois exposure, typically by listing Illinois in Section 3A of the policy rather than relying on Section 3C “other states” coverage, which may not satisfy Illinois law or obligate the carrier to cover a claim. It explains that missteps—such as failing to include Illinois in Section 3A or not following Section 3C notice requirements—can result in carriers successfully denying claims, leaving employers personally responsible, potentially deemed uninsured by the Illinois Workers’ Compensation Commission, and liable to reimburse the Injured Workers’ Benefit Fund plus penalties of up to $500 per day under the Workers’ Compensation Act. The bulletin separately highlights that construction-industry employers must base premiums on the Illinois situs of the work under the Workers’ Occupational Disease Act and face additional penalties of up to $1,000 per day (capped at $50,000) if noncompliant, including where Illinois is placed only in Section 3C rather than Section 3A.
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