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Is Workers Comp Insurance Required In All States?

Today, workers’ compensation insurance is available in all 50 states. Since the laws requiring where a policy can be purchased and coverage vary from state to state, it is important for business owners to learn what the specific laws are in their particular state.

In most states, workers’ compensation insurance can be obtained from a private insurance carrier, a self-insured group (SIG), or through a state fund. Some states still have a monopolistic model which requires businesses to purchase workers’ compensation insurance solely from the state fund.

A business owner should research or ask their insurance agent about the laws and coverage requirements relevant to their business’s location as each state is different. For example, in Georgia, only business owners who employ three or more persons are required to carry workers’ compensation insurance.1 In Florida, the type of business factors into the requirements.2 For example, most non-construction businesses require workers’ compensation insurance when there are four or more employees. If you are in construction, the law mandates coverage is obtained with one or more employees.

Across the country, workers’ compensation is available to help protect businesses and employees, but it is not always required. Texas is unique in many ways, one of them being the state’s workers’ compensation insurance requirements. Business owners in Texas are not required by law to carry workers’ compensation insurance. However, because of its benefits to both employers and employees, a large percentage of the Texas workforce is covered by a workers’ compensation policy.

Additionally, all states have different workers’ compensation requirements when it comes to independent contractors, out-of-state employees, and part-time workers.To learn more, the United States Department of Labor provides contact information for each state’s workers’ compensation office and website. Click here to view that contact page.

No matter what state in which you do business, having a workers’ compensation insurance policy is a good idea. Buying workers’ compensation insurance protects your business’s bottom line by shielding you from potential lawsuits, and it also provides injured employees with medical care and compensation for lost wages.

EMPLOYERS operates in 36 states and the District of Columbia. With a vast network of appointed agents, they can help you better understand the workers’ compensation insurance laws in your state. If you are looking for workers’ compensation insurance Get Started Now by clicking here, and we will put you in touch with an agent near you.

1. https://sbwc.georgia.gov/insurance, accessed on March 7, 2014.

2. http://www.myfloridacfo.com/division/wc/employer/coverage.htm#.UxossvldXsE, accessed on March 7 ,2014.