Road/Street Construction workers comp rate in Illinois
The filed workers comp rate for class code 6237 (Road/Street Construction) in Illinois is $1.74 per $100 of payroll. On $500,000 of payroll, that is roughly $8,690 in base premium.
Workers comp rules in Illinois affecting code 6237
Illinois uses NCCI for workers comp rate setting. Coverage is mandatory once an employer crosses the threshold of All employers with one or more employees are required to carry workers' compensation insurance..
Subcontractor coverage in Illinois
General contractors are liable for the workers' compensation coverage of uninsured subcontractors.
Owner-exclusion rules for code 6237
Illinoisallows business owners to file an election excluding themselves from workers comp coverage. Excluding $80,000 of owner payroll at $1.74 saves $1,390 per year.
1099 contractor handling
Illinois uses a multi-factor test to determine if a 1099 contractor is an employee for workers' compensation purposes.
Penalty for failing to carry coverage
Fines up to $10,000 per day of non-compliance, potential imprisonment, and personal liability for all claim costs.
Audit window after policy expiration
After your policy expires, Illinois's rating authority allows within 90 days of policy expiration for a premium audit. Code 6237 payroll discovered late can result in additional premium owed. Maintain segregated payroll records for at least the audit window plus one year.
Ways to lower your premium for code 6237 in Illinois
Most employers paying for code 6237 could reduce annual premium by 10-30% by applying one or more of the levers below. Each is grounded in Illinois-specific rules where applicable.
- Experience modifier (EMR): A 0.85 EMR (well-managed) cuts $1.74 to $1.48 per $100, saving roughly $1,303 on a $500K payroll. A 1.25 EMR (loss-burdened) inflates it to $2.17. Build a lower EMR by reducing claim frequency (every claim hurts the modifier even if dollar cost is small).
- Schedule credits: Illinois permits up to 25% schedule credit at underwriter discretion. At $1.74, a 7% credit lowers your effective rate to $1.62 per $100.
- Deductible plans: Per-claim or aggregate deductibles ($1K-$10K typical) cut premium 5-15%. Best fit when historical claim count is low.
- Reclassify payroll: Code 6237 may be applied too broadly. If a portion of payroll is genuinely clerical and properly segregated, that portion can be reported as code 8810 (clerical) at $0.10-$0.30 per $100.
- PEO or staff leasing: A Professional Employer Organization can pool your code-6237 payroll with similar businesses in Illinois, often securing better blended rates than your standalone EMR can achieve.
- Dividend or retro plans: Some carriers offer participating policies that return a dividend if your loss ratio stays below a target. Best for employers with predictably good loss experience.
- Wrap-up policy for projects: For larger code-6237 operations (especially construction), an OCIP or CCIP wrap can consolidate coverage at lower aggregate cost.
Common claim drivers in construction affecting code 6237
Rate filings for code 6237 reflect what actually drives claim cost for this occupation across NCCI's national experience and Illinois's state-specific loss data. The largest drivers behind the $1.74 rate are typically:
- Falls from elevation. OSHA cites falls as the leading construction injury cause; typically 25-35% of code-rate cost.
- Struck-by / caught-between. Vehicle, equipment, and falling-object injuries account for 15-20% of construction claims.
- Cumulative trauma. Back and shoulder injuries from repetitive lifting and overhead work drive long-tail claim costs.
Targeting these in your safety program produces the largest EMR improvement. Most claim-frequency reductions come from controls on the top two drivers above; severity reductions require return-to-work programs and aggressive medical management.
FAQ
What is the workers comp rate for code 6237 in Illinois?
The filed workers comp loss cost or rate for NCCI class code 6237 in Illinois is $1.74 per $100 of payroll.
How much would I pay on $500,000 payroll?
At $1.74 per $100, $500,000 yields a base premium of $8,690 before EMR and schedule credits. With an EMR of 0.85, effective rate is $1.48; with 1.25, it is $2.17.
Where else can I see code 6237?
MN has the cheapest filed rate ($0.210) and CA the highest ($2.40). Illinois sits at the 95th percentile across 19 peer states.
Can I get a schedule credit on code 6237 in Illinois?
Illinois permits up to 25% schedule credit. At $1.74, a 10% credit lowers effective rate to $1.56 per $100.
Can I exclude myself from code 6237 coverage in Illinois?
Yes. Illinois allows business owners to file an election excluding themselves from workers comp coverage on their own payroll.