If you skip coverage, you might as well be leaping without a harness—because fines, lawsuits, and shutdowns are waiting below.
secure adequate coverage can lead to severe legal, financial, and operational consequences, including fines, lawsuits, and even the suspension of your busi- ness activities. Consult with legal and insurance pro - fessionals to make informed decisions on coverage. If you skip coverage, you might as well be leaping without a harness—because fines, lawsuits, and shutdowns are waiting below. By secur - ing the right protection, you’re not just looking out for your employees—you’re making sure your business doesn’t hit the ground. Katie Stahl is senior counsel at Mudd Law and runs the firm’s Houston office. Mudd Law also has offices in Chicago and Park City. The firm’s attorneys are licensed in Tex - as, Illinois, Indiana, Colorado, Connecticut, and Utah. In addition to assisting busi - nesses and individuals with their copyright, trademark, privacy, litigation, and general counsel needs, Stahl currently serves on the Computer and Technology Section Council for the State Bar of Texas and co-edits the section’s Circuits Law Journal. muddlaw.com
nearly all employees, including part-tim - ers, new hires, and those injured on the job. Even with just one employee, compliance is mandatory. Failing to secure workers’ compensa - tion insurance in Illinois can lead to severe consequences. Employers who knowingly neglect this requirement face fines of $500 per day, with a minimum penalty of $10,000. Corporate officers may also be held personally liable if the company fails to pay. A negligent lapse in securing insurance constitutes a Class A misdemeanor, while a knowing failure escalates to a Class 4 felony. Employers lose protection under the Workers’ Compensation Act without proper coverage, exposing them to unlimited civil liability if an employee is injured during the uninsured period. In
such cases, the employer must prove in court that they were not negligent. Additionally, the Commission may issue a work-stop order, forcing the business to halt operations until insurance is obtained.
Ensure coverage to avoid these signifi - cant legal and financial repercussions.
A LEGAL SAFETY HARNESS
Understanding and adhering to your state’s workers’ compensation laws is not just a matter of legal compliance— it’s a critical component of risk manage - ment for your business. As demonstrat - ed by the variations in requirements across Texas, Oklahoma, Colorado, Utah, and Illinois, each state has its own unique regulations that could signifi - cantly impact your operations. Failing to
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