Workers Comp Insurance for Barbershops in Illinois: Requirements and Average Costs

Illinois requires all employers to carry workers comp insurance from the first employee. Illinois barbershops with any employees on payroll must carry workers comp coverage. Workers comp in Illinois is regulated by the Illinois Workers Compensation Commission (IWCC). Illinois workers comp costs are above the national average due to the state's litigation environment and medical cost structure.

Quick Answer

Estimated workers comp premiums for Illinois barbershops:

Barbershop Type	Estimated Annual Workers Comp Premium
Solo barber (no employees)	Not required
Small barbershop (1 to 3 employees)	$1,300 to $3,200 per year
Mid-size Chicago barbershop (4 to 8 employees)	$3,000 to $7,500 per year

Illinois barbershop workers comp premiums are above the national average. Chicago barbershops pay more than downstate Illinois barbershops.

What Workers Comp Covers for Illinois Barbershops

Medical Benefits

Covers medical treatment, hospitalization, and rehabilitation costs for employees injured on the job.

Lost Wage Benefits

Covers a portion of wages for employees unable to work due to a work-related injury or illness.

Permanent Disability Benefits

Covers employees with permanent partial or total disability resulting from a work-related injury.

Death Benefits

Covers funeral expenses and survivor benefits if a work-related injury results in death.

Illinois-Specific Considerations

Illinois Mandate: First Employee

Illinois requires workers comp from the first employee under the Illinois Workers Compensation Act. Failure to carry required coverage subjects the employer to penalties from the IWCC.

Illinois Workers Compensation Commission

Workers comp in Illinois is regulated by the IWCC. Disputes are adjudicated by IWCC arbitrators.

NCCI Class Code 9586

Illinois barbershops are classified under NCCI class code 9586 (Barber or Beauty Parlor). All non-exempt barber and staff payroll is rated under this code.

Booth Rental Barbers

Illinois barbers renting booth space as independent contractors are generally not covered under the shop owner's workers comp policy. Confirm worker classification status with your carrier.

Chicago Market

Chicago barbershops face higher workers comp costs than downstate Illinois shops due to higher wage levels and medical costs in the Chicago metropolitan area.

Frequently Asked Questions

Does Illinois require workers comp for barbershops?

Yes. Illinois requires workers comp from the first employee under the Illinois Workers Compensation Act.

What is the penalty for not carrying workers comp in Illinois?

The IWCC can penalize employers who fail to carry required workers comp coverage. Civil penalties and potential criminal charges apply.

What class code applies to Illinois barbershop workers comp?

Class code 9586 (Barber or Beauty Parlor) is the standard NCCI code for barbershop employees in Illinois.

Does workers comp cover booth rental barbers in Illinois?

Not automatically. Independent contractor booth renters are generally not covered under the shop owner's workers comp policy.

How much does workers comp cost for Illinois barbershops?

Small Illinois barbershops with 1 to 3 employees typically pay $1,300 to $3,200 per year, depending on payroll, claims history, and carrier.

Disclaimer

This article is for informational purposes only and does not constitute insurance or legal advice. Coverage details and costs vary by carrier and individual circumstances. Consult a licensed insurance agent for guidance specific to your situation.

Sources

• Illinois Workers Compensation Commission
• National Council on Compensation Insurance
• Insurance Information Institute
• Professional Beauty Association