Alabama Workers' Compensation
From the warm waters of the beautiful Gulf Coast to the pine forests high atop Cheaha Mountain, sweet home Alabama has plenty of natural beauty. The Yellowhammer State also has a Gross State Product of more than $170 billion with aerospace, healthcare, education, tourism, lumber, and mining making up leading economic sectors. Alabama is home to numerous auto manufacturing plants and other industrial outputs including steel, iron, and apparel. Its agricultural sector also produces poultry, cattle, fish, peanuts, and corn.
Small businesses make up a significant portion of the Alabama economy accounting for 96.9% of all state employers. The state’s 394,000 small firms provide jobs for 49% of the state’s private-sector workers.1
Alabama employers who have more than four full- or part-time employees, including officers of a corporation, are required to carry workers’ compensation insurance. Those who hire domestic employees, farm laborers, or “casual employees” are not required to carry workers’ compensation insurance. The same applies to municipalities of less than 2,000, based on the federal census.2
The leading small businesses purchasing workers’ compensation insurance in Alabama include business and financial operations, health and social service organizations, legal firms, food preparation establishments, and the construction industry.
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1 “Small Business profile, Alabama,” SBA Office of Advocacy, February 2013,www.sba.gov/sites/default/files/al12.pdf.
2 “Insurance Requirement Information,” Alabama Department of Labor, 2014 http://labor.alabama.gov/wc/insurance.aspx.