What are state exemptions for workers comp?

Most states require that business purchase workers’ comp insurance to protect the employers and employees following work-related accidents and injuries. The coverage specifications vary between states, depending on factors that warrant specific guidelines as determined by each state. Some of these factors include the number of employees, hours worked, employee wages, if the employees are independent contractors, and if, as a business owner, you are an LLC owner, a sole proprietor, or a partner of a partnership absent of other employees.

The exemptions that make it legal for businesses not to provide workers comp insurance are specified by each state. Review your state’s workers’ compensation laws to determine the exemptions for you and your employees. Employees may be denied workers’ compensation benefits when the injury is due to mental health symptoms that were not brought on by work, when the injury was self-inflicted, because of a policy violation, the result of a fight, or when the injury occurred offsite.

If you reside in a state that offers workers’ comp insurance exemptions, know that the savings you acquire are not worth the risks. It is wise to consider providing workers’ compensation coverage, even if your state allows for specific state exemptions for workers comp. Continue reading for more information on state exemptions and the subsequent risks of forgoing coverage.

What are state exemptions for workers comp?

Most states must carry worker’s compensation insurance. However, state exemptions for workers comp, whereby the business owner does not have to offer workers’ comp coverage, exist. The state laws that juristic these exemptions vary depending on where you live. You can apply for workers’ comp exemptions by completing a screening process and an application. If you’re approved, you will receive a certificate of election that renders state exemptions for workers comp.

What are the risks of forgoing coverage?

Without coverage, there are additional risks that can influence your business. For instance, if you are a sole proprietor living in a state that does not require workers’ comp and you do not purchase coverage, your health insurance will not cover medical bills. Should you slip and fall at work or experience injury, you will not receive coverage because the accident occurred at your workplace. You will also be denied benefits to help with recovery and will have to pay out of pocket for medical costs.

What jobs may be exempt from coverage?

Be sure to review the laws for your state, but here is a general overview of the potential jobs that may obtain state exemptions for workers comp in your area:

  • maritime workers
  • self-employed contractors
  • independent contractors
  • farm workers
  • railroad employees
  • owners of shops
  • volunteers
  • government employees

Get a coverage quote and protect your business.

Get a quote and consider how you can protect yourself, your employees, and your business by paying no mind to state exemptions for workers comp insurance. With the necessary coverage, you can avoid paying out-of-pocket for injuries and respond to emergencies with the protection your business needs to stay secure.