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Michael,
Worker's comp is a state issue, so you need to talk to the appropriate folks in Illinois. We aren't necessarily the same as any other state. In general, the rule in Illinois is that if you employ someone more that a certain period of time (I can't remember if it's in hours or months), per year, you need worker's comp. After you start insuring one employee, you then need to cover all employees regardless of how much they work.
If you are required to cover employees and you don't, and an employee gets injured, your business is considered self-insured and is liable for paying worker's comp benefits. If it's just you that might not be an issue, but if it's anyone else, you could be liable for comp for years.
Good luck with the bureaucracy. You might need to make a bunch of phone calls. IL has a state government site you might want to check first.
Isabel
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