Illinois Business Shut Down for Failing to Obtain Workers Comp Insurance

June 8, 2009

For the first time in state history, an Illinois business is being forced to close because it failed to provide workers’ compensation insurance for its employees. The All Good Dogs Pet Care, also known as The Hungry Pup, is a dog-walking company based in Evanston, Illinois. It offered its services to six suburbs in the area.

Four of the company’s employees have filed for workers’ compensation benefits, and it was found that two of those employees were eligible to receive a payout. However, All Good Dogs Pet Care had not purchased the insurance, so the employees did not receive their benefits.

It is the obligation of each employer to purchase insurance. They may face a fine of up to $500 per day without insurance with a minimum fine of $10,000. Corporate officers may also be held personally liable for the offense and can be sent to prison.

All Good Dogs Pet Care was given several opportunities to comply with the law. They did not reply to letters from the Illinois Workers’ Compensation Commission Insurance Compliance Division. They also ignored a request to appear at a hearing, so the business was closed down by the Division and by the City of Evanston.