Who can be excluded from workers’ compensation coverage?
Workers Compensation - July 18, 2025
While most companies are required to provide employees with workers’ compensation to cover on-the-job injuries, it is essential to understand who can be excluded from workers’ compensation under the law. Independent contractors, sole proprietors, and business owners or partners are among the individuals who do not qualify for workers’ compensation. If you are hurt while working, a Chicago workers’ compensation attorney from Horwitz, Horwitz & Associates can discuss your options and advocate for you.
What is workers’ comp, and who must carry workers’ compensation?
Workers’ compensation insurance is a no-fault policy that most Illinois businesses are legally required to carry if they meet specific criteria. It protects both employees and employers when a work-related injury or illness occurs.
Workers’ compensation benefits can help:
- Pay for the employee’s medical bills and treatment costs
- Replace a portion of lost wages during recovery
- Cover rehabilitation expenses or ongoing care needs
- Provide death benefits to surviving family members, if applicable
Along with protecting injured workers, workers’ compensation coverage also helps minimize an employer’s liability by preventing most lawsuits related to workplace injuries.
Who is not eligible to receive workers’ compensation under Illinois law?
According to workers’ compensation laws, certain groups of individuals are excluded from receiving workers’ compensation benefits even if they suffer injuries while performing their job duties. Individuals subject to workers’ compensation exemptions include Independent contractors, federal employees, police and firefighters, railroad employees, certain farm workers, and workers covered by the Longshoremen and Harbor Workers’ Compensation Act. These workers are either not classified as employees or are covered by other state or federal laws.
In certain situations, corporate officers, business owners, or board members may choose to opt out of workers’ compensation coverage. Individuals electing exemption from workers’ compensation insurance must submit a notice of election form under Illinois law. State laws clearly define who may opt out and who must carry workers’ compensation coverage. Certain types of employees are required to be covered under Illinois workers’ compensation laws, while others may be excluded.
Sole proprietors may also choose to be excluded from, or covered by, another business insurance policy. Furthermore, certain board members have elected to be exempt from workers’ compensation insurance as well.
How to protect yourself without access to workers’ compensation?
If you are an individual who falls under a workers’ comp exemption, you are not without options to protect yourself should you suffer a work injury. You may be able to secure occupational accident insurance or other business insurance to help cover costs if you suffer a work-related injury. These policies can offer some financial protection when workers’ compensation benefits are not available. It can also give you peace of mind knowing you will not be left to cover the full amount of your medical expenses and lost wages yourself.
How can you recover losses from work injuries if you are excluded from workers’ comp?
If you have suffered a work injury and are an independent contractor or other individual considered exempt from workers’ comp, you may still have legal options to recover what you have lost. Depending on the cause of the accident, you may be able to file a personal injury lawsuit against a negligent third party, or, in rare cases, the business itself if employer negligence applies and you are not classified as an employee under Illinois workers’ compensation laws. If you have business insurance, they may also be able to help cover some of your expenses.
Horwitz, Horwitz & Associates helps you assess your options
Horwitz, Horwitz & Associates understands the stress a work injury can cause, especially if you have limited access to compensation. Our team helps you navigate your options and take legal action so you are not left to deal with your medical expenses on your own. Call our offices at (800) 985-1819 or reach out to us online to schedule a free case evaluation with our team to learn more.
