Illinois does not require you carry the coverage on yourself, unless you're incorporated. Then it's required by law.
The reason MSOs and Primes are forcing the issue is due to the fact that even though you can legally not carry the coverage on yourself, the liability doesn't stop with you if there is a claim. Example: if you are hurt severely or disabled/killed... you're spouse lawyers up and they WILL pursue it to the next entity that had coverage. They will get their money. They will claim that you were ignorant and that you didn't know any better... That the company you worked for inherits the liability and they should have made you do what was in your best interest.
The (IL) insurance companies can and will apply 100% of what the prime/mso paid you (full invoice amounts for that policy period) to the company you are working for's payroll. They will assert that ALL that money went to payroll (that is the way the statute reads)... not acknowledge expenses or overhead. So if you made $100k they will put that full amount to the entity you worked under... even if you only took $40k and can show the other $60k went to expenses.
Then what happens is the company you work for whether it's the provider or a prime... will have to pay for your WC when they get the yearly audit.
Because you didn't have a policy, they have to pay the additional premium for that exposure.
There is no way to stop that liability without a policy, so they'll get the money.
...but... there is a work around of sorts. You can get a policy that has no coverage. It's from the low risk pool. Most insurance agents won't bother with it because there's no money in it for them, no premium... no pay for the agent.
You may need to go to another agent or entity, ask for a policy with no coverage. Here downstate it runs about $1500 a year. You get a WC policy number on your certificate showing you have work comp, but there is no coverage. So you can say you have a policy and chose no coverage... Only if you're a one man band though, if you have employees you have to go full boat.
Good luck.
