Illinois Workers' Compensation Insurance (plus liability & dram shop coverage): Chicago restaurant guide
Illinois Workers' Compensation Commission / insurer
What it is
Illinois requires workers' compensation insurance for almost every employer — 'if you have one employee, even a part-time employee' — and a completed notice posted at the work site. Your lease, BACP (sidewalk café: $500,000/$1,000,000 general liability) and the liquor licenses (dram shop) add liability coverages.
When a restaurant needs it
Before your first hire; general liability before construction and licensing; dram shop before the liquor license issues.
How to apply
Bind workers' compensation through a broker or carrier, post the IWCC notice, and get certificates of insurance naming the City and your landlord as needed.
Documents you’ll need
- Workers' compensation policy and posted notice
- General liability certificate
- Liquor liability (dram shop) certificate if serving alcohol
Good to know
Operating without workers' comp brings fines of up to $500 a day with a $10,000 minimum, work-stop orders and personal liability for officers. Sole proprietors, partners, officers and LLC members may exclude themselves.
Official source
Answer a few questions about your space and get every permit in order, with a timeline, a cost range, walkthroughs, and every application filled in for you to sign with Open.
Last reviewed 2026-10-06. Guidance only, not legal advice.