New law effective July 20, 2005

“If an employer knowingly and willfully fails to obtain insurance, it may be fined up to $500 for every day of noncompliance, with a minimum fine of $10,000. Corporate officers can be held personally liable if the company fails to pay the penalty. Since the insurance compliance program began in 1996, the Commission has collected over $470,000 in fines, while providing workers the proper legal protection and other employers a more fair competitive arena."

"New law provides for additional penalties: Corporate officers who are found to have negligently failed to obtain insurance are guilty of a Class A misdemeanor; if they are found to have knowingly failed to obtain insurance, they are guilty of a Class 4 felony."

"An employer that knowingly fails to obtain insurance loses its protections under the Workers' Compensation Act.  An employee who is injured during the time the employer was uninsured may sue the employer in civil court, where benefits are unlimited.  In addition, during the trial the burden will be upon the employer to prove it was not negligent.”

Illinois Workers' Compensation Commission 
www.state.il.us/agency/iic/insurance.htm