The Latest on Workers’ Compensation and Business in Illinois

Recent reports reveal that workers’ compensation costs are sharply falling and the business climate in Illinois continues to improve. It is clear that the 2011 changes to the workers’ compensation laws in Illinois are dramatically lowering worker compensation payouts to injured workers.

• The National Council on Compensation Insurance (NCCI – an insurance industry rate making agency which provides workers’ compensation information) has issued its workers’ compensation advisory rates for 2025.  It states that Illinois employers should see a 0.1 percent cut in their workers’ compensation insurance premiums – this is the thirteenth consecutive rate reduction that has been recommended.
• According to the 2025 Oregon Premium Rate Ranking Summary, an analysis of workers’ compensation across all of the states, Illinois ranks 13th in the nation for workers’ compensation costs. Illinois was ranked 3rd for workers’ compensation costs in 2010, prior to the reforms enacted in 2011.
• The National Academy of Social Insurance reports that Illinois had a 11.2 percent decrease in benefits paid between 2018 and 2022. This is the 13th largest decrease in the country. 
• Attracted by insufficient insurance regulation, there are 364 insurance companies writing workers’ compensation insurance policies in Illinois according to the Illinois Department of Insurance. Illinois had the fifth most workers’ compensation insurers in 2023 and ranked seventh in the nation in direct premiums written.
• According to the State of Illinois Economic Forecast prepared by Moody’s Analytics, the Illinois’ business climate outshines our regional rivals. Illinois offers a huge talent pool of highly skilled workers, world-class universities and top notch transportation while our business costs are lower than the national average and have been trending downward over the last few decades.
• Illinois was again ranked 6th in the nation for the best states to make a living according to the 2025 report by MoneyRates – ahead of our neighbors Missouri (13th), Wisconsin (16th), Iowa (18th) and Indiana (19th). Illinois has ranked in the top ten in 8 out of 10 years. The rankings are based on average wages, state tax rates, cost of living, unemployment rates and low incidents of workplace injuries.

PDF Fact Sheet: The Latest on Workers' Compensation and Business in Illinois