Who requires Workers’ Compensation Insurance?

This group doesn’t require this coverage and can save money from excluding themselves

Sole Proprietors and partnerships do not require a workers’ compensation insurance unless they have hired employees who do not have ownership in the business. While most states allow Sole Proprietors and partnerships to cover themselves for workers’ compensation, it is not a requirement.

Learn your State Laws regarding Workers’ Compensation

The benefits of Workers’ compensation include medical expenses, death benefits, lost wages and vocational rehabilitation. While virtually every state requires this form of insurance; each has their own rules which vary significantly. Failure to have a Workers compensation insurance and failure to comply with the state laws may result in the employer being exposed to pay for all these employee benefits out of their pockets and they may also be required to pay penalties enforced by each state with regards to not having such an insurance.

When Workers’ Compensation Insurance is purchased by employers; we assume that the statutory obligation to pay medical, indemnity and death benefits are such that they are under the law. The premiums may vary based on the potential liability reflected by the employer for claims based on individual experience, wages paid to employees and the type of industry that they are operating in.

Worker’s Compensation Benefit Covers:

  • Medical Costs to Treat Immediate Injuries and Illnesses
  • Missed Wages
  • Ongoing Care
  • Funeral Costs and Death Benefits
  • Legal Costs if an Employee Sues You over the Injury

Disability Benefits Insurance

Some states require employers to provide disability benefits coverage to employees for an off-the-job injury or illness along with Workers Compensation coverage. Disability benefits are temporary cash benefits paid to an eligible wage earner, when he/she is disabled by an off the job injury or illness. Disability benefits are also paid to an unemployed worker to replace unemployment insurance benefits lost because of illness or injury. Check with your State Insurance Department to make sure you are complying with the Law.