Workers’ Compensation: State by State Guide

Although workers’ compensation insurance is one of the most crucial policies a company can purchase, many businesses gamble by going without — even when state law mandates it. However, successful businesses know that protecting themselves and their employees means complying with local, state, and federal laws. Here’s a closer look at workers’ compensation insurance and how to abide by your state’s rules.

Understanding Workers’ Compensation

It was over 100 years ago that the first attempt at workers’ compensation insurance took flight. Back in 1884, it was known as Worker’s Accident insurance. Today, workers’ compensation, also known as workman’s comp, continues to benefit the employee. More importantly, it’s insurance for employers. Let’s review some details regarding this particular coverage.

What Is Workers’ Compensation Insurance?

If an employee is injured or becomes ill because of their job, workers’ compensation insurance responds to cover their lost wages and medical expenses. As mentioned, this particular coverage mostly benefits the employee — but it’s vital insurance for employers.

What Does It Cover?

When an employee experiences a work-related injury or illness, employers and injurers typically have a limited time frame — typically 14 to 30 days — to look further into the situation and process the claim. Insurance carriers can either approve or deny the claim. Workers’ compensation insurance covers disability benefits, including the following:

• Lost wages
• Medical expenses
• Ongoing healthcare costs
• Funeral expenses

Does Your Company Need It?

In the United States, 49 of the 50 states must carry workers’ compensation insurance. Texas is the only state that doesn’t mandate its businesses to purchase this coverage. That said, it’s safe to say that your business most likely needs workers’ compensation to comply with state laws — and protect your employees.

Will You Face Penalties Without It?

Undoubtedly. In some states, not having workers’ compensation is a criminal offense. Most states charge penalties and fines for noncompliance, and yet, the severity of the charges depends on that particular state. 

Avoiding such penalties requires employers to know their state’s laws and comply with them wholly. Additionally, companies will also face fines if they misrepresent information, such as employee headcount or job types. Honesty is your best bet to sidestep fines and sanctions.

How Can You Purchase a Policy? 

Just as each state sets its workers’ compensation requirements, each state approaches ways to offer the policy, too. Here are the three types of state categories in the US: 

1. NCCI states use codes and rates the National Council on Compensation Insurance (NCCI) establishes. They purchase the policy from the state, either directly or through a contracted carrier.
2. Independent bureau states develop their own separate rating bureau and purchase the policy from a private insurance carrier.
3. Monopolistic states prohibit private insurance coverage but instead use a state fund to provide workers’ compensation insurance.

Naturally, local laws and job type (i.e., high-risk jobs) also influence how states regulate workers’ compensation insurance. Some states experience higher claim payout than others, which affects workers’ compensation rates, as well. 

What Does It Cost?

Depending on the company’s unique situation, the price for workers’ compensation can vary widely. Keep in mind that each state establishes its workers’ compensation rates, even though the US standardizes classification codes across the nation. As imagined, calculating premiums is unique, mostly because it depends heavily on the state. 

Nevertheless, the fundamental estimation is:

Premium = (Payroll/$100) x Class Code Rate x Experience Modification Rate

For example, at a workers’ compensation rate of $1.25, a business with $100,000 in payroll can expect to pay around $1,250 in annual premiums. Though, employers can only review an exact quote from an insurance carrier. 

Workers’ Compensation Regulations by State

Alabama

Do employers have to provide Workers’ Comp Insurance? 

Aside from contractors, every business in Alabama with five or more employees must provide coverage. 

Are there noncompliance penalties? 

Employers that fail to provide coverage could face fines of $1,000 per employee for every day without coverage. They might also have to close their business until they comply or even face jail time. 

How do employers purchase a Workers’ Comp policy? 

Employers can self-insure if they meet the state-dictated stipulations or purchase a policy from a private insurance carrier. The Alabama Assigned Risk Pool also offers coverage, especially for high-risk businesses.  

Where can you find policy details? 

As the program administrator, the Alabama Department of Labor, Workers’ Compensation Division provides policy details.  

Are there worker types coverage might exclude?

• Individuals employed by a business with less than five employees
• Licensed real estate brokers
• Casual employees 
• Domestic servants
• Agricultural workers

Alaska

Do employers have to provide Workers’ Comp Insurance? 

Unless approved to self-insure, any business with one or more employees must have this policy.

Are there noncompliance penalties? 

With fines up to $10,000 and one year of jail time, or even business closure until coming into compliance, the penalty for noncompliance is steep in Alaska. Also, companies might face penalties of $1,000 per employee for each day without coverage. 

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can buy coverage from competitive state funds. 

Are there worker types coverage might exclude?

• Domestic servants
• Entertainers under a contract
• Babysitters (part-time)
• Contracted real estate agents
• Harvest and part-time, temporary help
• Professional hockey players and coaches who have health insurance
• Amateur sports officials
• Cleaning employees (non-commercial)
• Regulated commercial fisherman
• Regulated taxi drivers

Where can you find Workers’ Comp policy details? 

The Alaska Department of Labor and Workforce Development serves as the program administrator and provides policy details. 

Arizona

Do employers have to provide Workers’ Comp Insurance? 

Any company with one or more employees, whether full- or part-time, must obtain coverage.

Are there noncompliance penalties? 

If a business is noncompliant, it might face fines from $1,000 to $10,000. Companies could also face multiple penalties after being sued by an uninsured and injured worker. 

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can purchase coverage from competitive state funds.

Are there worker types coverage might exclude?

• Sole proprietors eligible to self-insure
• Absent employees
• Independent contractors
• Domestic workers
• Casual employees

Where can you find Workers’ Comp policy details?

The program administrator is the Industrial Commission of Arizona and provides more details about workers’ compensation insurance. 

Arkansas

Do employers have to provide Workers’ Comp Insurance? 

Any business with three or more employees must provide coverage. 

Are there noncompliance penalties? 

If a business doesn’t purchase coverage, it will pay state penalties. Plus, the Arkansas Workers’ Compensation Commission will no longer protect the company.

How do employers purchase a Workers’ Comp policy? 

Companies can purchase this coverage from private insurance carriers.

Are there worker types coverage might exclude?

• Inmates
• Casual employees
• Real estate agents
• Arkansas state employees
• Agricultural workers
• Nonprofit organizations 

Where can you find Workers’ Comp policy details?

Serving as the program administrator, the Arkansas Workers’ Compensation Commission provides more details about workers’ compensation insurance. 

California

Do employers have to provide Workers’ Comp Insurance? 

Any business with one or more employees must provide coverage. 

Are there noncompliance penalties? 

California views noncompliance as a criminal offense, often resulting in jail time. It will force your company to close down until coming in compliance, facing penalties up to $10,000 or more for violation of the shut-down order. Companies could also face multiple penalties after being sued by an uninsured and injured worker. 

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can purchase coverage from competitive state funds.

Are there worker types coverage might exclude?

• Sole proprietors
• Clerks or deputy sheriffs
• Domestic employees (hired by family members)
• Amateur sports officiators
• Volunteers at non-profit recreational camps
• Those working for aid or sustenance only

Where can you find Workers’ Comp policy details?

As the program administrator, the California Department of Industrial Relations, Division of Workers’ Compensation can provide more coverage details. 

Colorado

Do employers have to provide Workers’ Comp Insurance? 

Any business with one or more full- or part-time employees must purchase coverage. 

Are there noncompliance penalties? 

A noncompliant business could face a cease and desist order on top of daily fines from $250 to $500 per employee daily. 

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can purchase coverage from competitive state funds.

Are there worker types coverage might exclude?

• Independent contractors
• Inmates
• Volunteers
• Driver under a lease agreement
• Real estate agents and brokers (as long as they’re commission-based)
• Railroad employees (not covered under federal law)

Where can you find Workers’ Comp policy details?

The Colorado Department of Labor and Employment serves as the program administrator and provides more policy details. 

Connecticut

Do employers have to provide Workers’ Comp Insurance? 

Any business with one or more full- or part-time employees must obtain coverage. 

Are there noncompliance penalties? 

Businesses that fail to comply with state regulations will face a stop-work order until the premium is paid. Plus, employers will be fined $300 per employee per day. 

How do employers purchase a Workers’ Comp policy? 

Companies can purchase this coverage from private insurance carriers.

Are there worker types coverage might exclude?

• Sole proprietors
• Independent contractors
• Employees working 26 hours or less per week
• Business partners

Where can you find Workers’ Comp policy details?

The State of Connecticut Workers’ Compensation Commission serves as the program administrator and provides more details. 

Delaware

Do employers have to provide Workers’ Comp Insurance? 

Any business with one or more employees must provide coverage. 

Are there noncompliance penalties? 

Companies who fail to comply with state regulations could face fines three times the amount equal to the annual insurance premium. 

How do employers purchase a Workers’ Comp policy? 

Companies can purchase this coverage from private insurance carriers.

Are there worker types coverage might exclude?

• Sole proprietors
• Independent contractors
• Government employees
• Some farmers and agricultural workers
• Real estate agents
• Part-time employees (working 26 hours or less per week)

Where can you find Workers’ Comp policy details?

The program administrator is the Delaware Division of Industrial Affairs and can provide more details. 

Florida

Do employers have to provide Workers’ Comp Insurance? 

Any business with four or more employees must purchase coverage. 

Are there noncompliance penalties? 

Noncompliant businesses could be issued a stop-work order until coming into compliance. Plus, they face fines equal to twice what their annual premium would be for two years. 

How do employers purchase a Workers’ Comp policy? 

Companies can purchase this coverage from private insurance carriers.

Are there worker types coverage might exclude?

• Real estate brokers 
• Independent contractors
• Musicians and theatre entertainers
• Some sports officials
• Some vehicle-for-hire drivers
• Part-time employees
• Most volunteers

Where can you find Workers’ Comp policy details?

The Florida Division of Workers’ Compensation is the program administrator and provides more details. 

Georgia

Do employers have to provide Workers’ Comp Insurance? 

Any business with three or more employees must provide coverage. 

Are there noncompliance penalties? 

Businesses that fail to comply with state regulations could face hefty criminal and civil penalties. If an uninsured and injured employee sues a company, the company will likely have to pay for legal fees, civil penalties from $100 to $1,000 per violation, medical expenses, and partial compensation. Additionally, businesses that refuse to comply could face fines from $1,000 to $10,000 or up to a year in jail. 

How do employers purchase a Workers’ Comp policy? 

Companies can purchase this coverage from private insurance carriers.

Are there worker types coverage might exclude?

• Independent contractors
• Real estate agents or brokers
• Domestic servants
• Farm or agricultural workers
• Some railroad workers

Where can you find Workers’ Comp policy details?

The program administrator is Georgia’s State Board of Workers’ Compensation, and it provides more detailed information. 

Hawaii

Do employers have to provide Workers’ Comp Insurance? 

Whether full- or part-time, permanent or temporary, any business with one or more employees must purchase coverage.  

Are there noncompliance penalties? 

Noncompliant businesses could face daily fines of up to $100 per employee. Plus, these companies are vulnerable to employee lawsuits. 

How do employers purchase a Workers’ Comp policy?

Companies can purchase this coverage from private insurance carriers.

Are there worker types coverage might exclude?

• Real estate agents or brokers 
• Some religious workers (i.e.,  ministers, priests, rabbis, etc.)
• Nonprofit workers
• Domestic workers
• Students hired in exchange for room, board, or tuition

Where can you find Workers’ Comp policy details?

The State of Hawaii Disability Compensation Commission serves as the program administrator and can provide more details. 

Idaho

Do employers have to provide Workers’ Comp Insurance? 

Any business with one or more part-time, full-time, seasonal, and occasional employees must purchase coverage. 

Are there noncompliance penalties? 

Noncompliant businesses are responsible for employee injuries and all the typical workers’ compensation benefits. They could also face 10% penalties for medical coverage, lost wages, and legal fees involving the injured employee. Additionally, noncompliant businesses might face a daily $2 per employee fine or $25 per day fine, whichever is more significant.

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can purchase coverage from competitive state funds.

Are there worker types coverage might exclude?

• Read estate agents
• Domestic workers
• Agricultural pilots
• Volunteer ski patrollers
• Secondary school sports officials
• Outworkers

Where can you find Workers’ Comp policy details?

The Idaho Industrial Commission is the program administrator and provides more details. 

Illinois

Do employers have to provide Workers’ Comp Insurance? 

Any business with employees must purchase coverage. 

Are there noncompliance penalties? 

Businesses failing to comply with state regulations face daily fines of $500 for each day of noncompliance. They might also face up to three years of jail time and up to $25,000 in fines.

How do employers purchase a Workers’ Comp policy? 

Companies can purchase this coverage from private insurance carriers.

Are there worker types coverage might exclude?

Jurors

Real estate brokers

Farmers

Where can you find Workers’ Comp policy details?

The Illinois Workers’ Compensation Commission is the program administrator and provides more details. 

Indiana

Do employers have to provide Workers’ Comp Insurance? 

Any business with employees must purchase coverage. 

Are there noncompliance penalties? 

Noncompliant businesses can face daily fines up to $50 per employee and stop-work orders until coming into compliance. They might also face up to one year of prison time and fines up to $5,000.

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers or self-insure. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can buy coverage from the Indiana Assigned Risk Pool. 

Are there worker types coverage might exclude?

• Independent contractors
• Casual employees
• Fire or police department employees (including reserve police officers)
• Prison inmates
• Farm or agricultural employees
• Coaches of youth sports teams
• Athletes (those on scholarship)
• Household employees
• Real estate employees
• Volunteers
• Railroad employees
• Household employees
• Employees with access to federal alternatives (i.e., seaman, longshoreman, etc.)

Where can you find Workers’ Comp policy details?

The Workers’ Compensation Board of Indiana serves as the program administrator and provides more details. 

Iowa

Do employers have to provide Workers’ Comp Insurance? 

Any business with employees must provide coverage. 

Are there noncompliance penalties? 

Noncompliant businesses can face penalties up to $1,000 and awards up to 50% of the injured employee’s additional benefits. 

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers or self-insure. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can purchase coverage from the Iowa Assigned Risk Pool. 

Are there worker types coverage might exclude?

• Some household employees
• Some agricultural workers
• Some casual employees
• Farm employers’ relatives or spouse
• Some corporate officers

Where can you find Workers’ Comp policy details?

The Iowa Division of Workers’ Compensation serves as the program administrator and provides more information. 

Kansas

Do employers have to provide Workers’ Comp Insurance? 

Any business with employees must purchase coverage.

Are there noncompliance penalties? 

Noncompliance businesses could face stop-work orders and also civil penalties or $25,000 or double their premium, whichever is more significant. 

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers or self-insure. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can purchase coverage from the Kansas Assigned Risk Pool.

Are there worker types coverage might exclude?

• Some agricultural workers
• Companies with a payroll of $20,000 or less. 
• Realtors (those working as independent contractors)
• Some firefighters
• Some owner-operator vehicle drivers

Where can you find Workers’ Comp policy details?

Serving as the program administrator, the Kansas Department of Labor provides more information. 

Kentucky

Do employers have to provide Workers’ Comp Insurance? 

Any business with one or more employees must provide coverage. 

Are there noncompliance penalties? 

Businesses that fail to comply with state regulations could face daily fines of $1,000 per employee, stop-work orders, and jail time.

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers or self-insure. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can buy coverage from the state’s assigned risk residual market.

Are there worker types coverage might exclude?

• Some domestic servants
• Some employed in a private home (i.e., maintenance, repair, and similar employees)
• Agricultural companies
• Those covered under federal programs (i.e., railroad, maritime workers, etc.)
• Specific religious organizations

Where can you find Workers’ Comp policy details?

The Kentucky Department of Workers’ Claims serves as the program administrator and provides more information. 

Louisiana

Do employers have to provide Workers’ Comp Insurance? 

Any business with one or more employees must provide coverage. 

Are there noncompliance penalties? 

Noncompliant businesses could face fines up to $10,000 in total — $250 per employee for the first violation and $500 per employee for the next offense. They might also face jail time and stop-work orders until coming into compliance. 

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can purchase coverage from competitive state funds.

Are there worker types coverage might exclude?

• Real estate agents
• Nonprofit volunteers
• Musicians and performers
• Some public officials
• Household employees
• Private unincorporated farmworkers

Where can you find Workers’ Comp policy details?

Serving as the program administrator, the Louisiana Workforce Commission provides more details. 

Maine

Do employers have to provide Workers’ Comp Insurance? 

Any business with one or more employees must obtain coverage.

Are there noncompliance penalties? 

Businesses that fail to comply with state regulations could face up to $10,000 or 108% of the premium (they should have been paying), whichever is more significant. They could also lose their business license or corporate charter. Furthermore, they’ll also be liable for the medical and death benefits of their employees.

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can purchase coverage from competitive state funds.

Are there worker types coverage might exclude?

• Independent contractors
• Domestic workers
• Some agricultural workers
• Maritimes employees covered by admiralty law

Where can you find Workers’ Comp policy details?

The Maine Workers’ Compensation Board serves as the program administrator and provides more details. 

Maryland

Do employers have to provide Workers’ Comp Insurance? 

Any business with one or more employees must purchase coverage. 

Are there noncompliance penalties? 

Noncompliant businesses could face fines up to $10,000, for which the company’s officers and directors will be liable.

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can purchase coverage from competitive state funds.

Are there worker types coverage might exclude?

• Independent contractors
• Some agricultural workers

Where can you find Workers’ Comp policy details?

The Maryland Workers’ Compensation Commission serves as the program administrator and provides more details. 

Massachusetts

Do employers have to provide Workers’ Comp Insurance? 

Any business with one or more employees must obtain coverage. 

Are there noncompliance penalties? 

Noncompliant businesses could face daily fines of $100 and stop-work orders. However, if the company appeals the stop-work order, they might be allowed to stay open — but the daily fine hikes up to $250.

How do employers purchase a Workers’ Comp policy? 

Companies can purchase this coverage from private insurance carriers.

Are there worker types coverage might exclude?

• Independent contractors
• Casual workers
• Real estate agents or brokers
• Professional athletes
• Salespeople working on commission only
• Interstate or foreign commerce vessel workers

Where can you find Workers’ Comp policy details?

The Massachusetts Office of Industrial Accidents serves as the program administrator and provides more information. 

Michigan

Do employers have to provide Workers’ Comp Insurance? 

Any business with three or more employees must purchase coverage. 

Are there noncompliance penalties? 

Businesses that fail to comply with state regulations could face jail time and fines up to $1,000. Also, the state can prevent the company from hiring any new employees until it comes into compliance. 

How do employers purchase a Workers’ Comp policy? 

Companies can purchase this coverage from private insurance carriers.

Are there worker types coverage might exclude?

• Real estate brokers
• Smaller employers
• Some domestic workers
• Some agricultural workers

Where can you find Workers’ Comp policy details?

Serving as the program administrator, the Michigan Workers’ Compensation Agency provides more information. 

Minnesota

Do employers have to provide Workers’ Comp Insurance? 

Any business with employees must purchase coverage. 

Are there noncompliance penalties? 

Noncompliant businesses could face weekly fines of up to $1,000 per employee. Additionally, if an injured and uninsured employee sues the company, the state could require it to pay for the employee’s compensation benefits and a penalty (65% of the benefits). Furthermore, the state can prevent the company from hiring new employees until coming into compliance.

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can purchase coverage from competitive state funds.

Are there worker types coverage might exclude?

• Sole proprietors
• Corporation managers
• LLC managers
• Farmers
• Domestic workers
• Casual employees

Where can you find Workers’ Comp policy details?

The Minnesota Department of Labor and Industry serves as the program administrator and provides more information. 

Mississippi

Do employers have to provide Workers’ Comp Insurance? 

Any business with five or more employees must obtain coverage. 

Are there noncompliance penalties? 

Noncompliant businesses could face fines of up to $1,000 and one year of jail time. They also might be required to pay benefits for injured and uninsured employees. 

How do employers purchase a Workers’ Comp policy? 

Companies can purchase this coverage from private insurance carriers.

Are there worker types coverage might exclude?

• Independent contractors
• Federal workers
• Domestic workers
• Farmworkers
• Nonprofit organization employees
• Employees covered by federal insurance (i.e., transportation or maritime employees)

Where can you find Workers’ Comp policy details?

The Mississippi Workers’ Compensation Commission serves as the program administrator and provides more details. 

Missouri

Do employers have to provide Workers’ Comp Insurance? 

Any business with five or more employees must obtain coverage. 

Are there noncompliance penalties? 

Noncompliant businesses could face a penalty of three times the insurance premium they should have been paying up to $50,000. If an employee were injured, the company would also be required to pay for their medical expenses. The first-time noncompliance charge is a misdemeanor; the second charge could be a felony. 

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can purchase coverage from competitive state funds.

Are there worker types coverage might exclude?

• Farmworkers
• Domestic servants
• Inmates
• Volunteers
• Sports officials
• Real estate agents
• Family chauffeurs
• Interstate commerce leased truck operators

Where can you find Workers’ Comp policy details?

The Missouri Division of Workers’ Compensation serves as the program administrator and provides more details. 

Montana

Do employers have to provide Workers’ Comp Insurance? 

Any business with employees must purchase coverage. 

Are there noncompliance penalties? 

Noncompliant businesses could face a minimum fine of $200 or twice the amount they should have been paying in premium. 

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can purchase coverage from competitive state funds.

Are there worker types coverage might exclude?

• Freelance photographers and authors
• Some athletic events officials
• Sole proprietors
• Real estate brokers
• Domestic servants
• Casual workers
• Newspaper carriers
• Jockeys
• Ordained ministers
• Barbers
• Cosmetologists
• Ditch company officers or managers
• Dependent member of the employer’s family 
• Individuals hired by enrolled tribal members, operating within the reservation’s boundaries
• Petroleum land workers

Where can you find Workers’ Comp policy details?

Serving as the program administrator, the Montana Department of Labor & Industry provides more information. 

Nebraska

Do employers have to provide Workers’ Comp Insurance? 

Any business with one or more employees must provide coverage. 

Are there noncompliance penalties? 

Businesses that fail to comply with state regulations might face a $1,000 civil fine for every violation — each noncompliant day is a violation. Company leaders could face jail time and stop-work orders.

How do employers purchase a Workers’ Comp policy? 

Companies can purchase this coverage from private insurance carriers.

Are there worker types coverage might exclude?

• Some volunteers
• Federal employees
• Agricultural workers
• Domestic servants
• Some railroad workers

Where can you find Workers’ Comp policy details?

The program administrator is the Nebraska State Employee Workers’ Compensation and provides more information. 

Nevada

Do employers have to provide Workers’ Comp Insurance? 

Any business with one or more employees must provide coverage. 

Are there noncompliance penalties? 

Noncompliant businesses could face a fine of up to $15,000 plus premium penalties. They will also likely face stop-work orders and be liable for work-related injuries to uninsured employees. 

How do employers purchase a Workers’ Comp policy? 

Companies can purchase this coverage from private insurance carriers.

Are there worker types coverage might exclude?

• Real estate brokers
• Commission salespeople 
• Clergy members
• Some sports officials
• Domestic workers
• Some musicians
• Theatre and stage performers
• Voluntary ski patrol
• Casual employees

Where can you find Workers’ Comp policy details?

Serving as program administrator, the Nevada Division of Industrial Relations provides more information. 

New Hampshire

Do employers have to provide Workers’ Comp Insurance? 

Any business with employees must provide coverage. 

Are there noncompliance penalties? 

Noncompliance businesses could face a one-time fine of $2,500 and $100 daily fine per employee for each day without coverage. They might also face stop-work orders until coming into compliance. 

How do employers purchase a Workers’ Comp policy? 

Companies can purchase this coverage from private insurance carriers.

Are there worker types coverage might exclude?

• Real estate brokers and appraisers
• Interstate commerce railroad workers
• Direct sellers
• Some service providers

Where can you find Workers’ Comp policy details?

The program administrator is New Hampshire’s Workers’ Compensation Division and provides further details. 

New Jersey

Do employers have to provide Workers’ Comp Insurance? 

Any business with employees must obtain coverage. 

Are there noncompliance penalties? 

Businesses failing to comply with state regulations could face penalties up to $5,000 for the first 20 days that they don’t comply and up to $5,000 for each day after, up to ten days. 

How do employers purchase a Workers’ Comp policy? 

Companies can purchase this coverage from private insurance carriers.

Are there worker types coverage might exclude?

• Independent contractors
• Inmates
• Domestic workers
• Casual workers
• Some willingly negligent employees

Where can you find Workers’ Comp policy details?

The New Jersey Division of Workers’ Compensation is the program administrator and provides more details. 

New Mexico

Do employers have to provide Workers’ Comp Insurance? 

Any business with three or more employees must obtain coverage. 

Are there noncompliance penalties? 

Noncompliant businesses could face a state-mandated shut-down. 

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers or self-insure. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can purchase coverage from the New Mexico Assigned Risk Pool.

Are there worker types coverage might exclude?

• Independent contractors
• Domestic workers
• Inmates
• Some willingly negligent employees
• Casual workers

Where can you find Workers’ Comp policy details?

Serving as the program director, the New Mexico Workers’ Compensation Administration provides more details. 

New York

Do employers have to provide Workers’ Comp Insurance? 

Any business with employees must purchase coverage.

Are there noncompliance penalties? 

Noncompliant businesses with five or fewer employees could face fines of $1,000 to $5,000: the more employees, the more significant the penalty. 

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can buy coverage from competitive state funds.

Are there worker types coverage might exclude?

• Clergy members
• Some employees of the City of New York
• Some domestic employees
• Some casual employees
• Longshoremen and harbor workers
• Railroad employees

Where can you find Workers’ Comp policy details?

Serving as the program administrator, the New York State’s Workers’ Compensation Board provides details. 

North Carolina

Do employers have to provide Workers’ Comp Insurance? 

Any business with three or more employees must purchase coverage. 

Are there noncompliance penalties? 

Businesses that fail to comply with state regulations could face a fine of one dollar per day per employee — $50 minimum and $100 per day maximum. They could also be responsible for compensation owed, lost wages, medical treatment costs, and defense fees.

How do employers purchase a Workers’ Comp policy? 

Companies can purchase this coverage from private insurance carriers.

Are there worker types coverage might exclude?

• Independent contractors
• Real estate agents and brokers
• Casual workers
• Board members
• Domestic employees
• Farmworkers
• Some railroad workers
• Newspaper delivery workers
• Some agricultural workers

Where can you find Workers’ Comp policy details?

The North Carolina Industrial Commission serves as the program administrator and provides more details. 

North Dakota

Do employers have to provide Workers’ Comp Insurance? 

Any business with employees must purchase coverage. 

Are there noncompliance penalties? 

Noncompliant businesses could face stop-work orders and a one-time fine of $10,000 plus $100 every day they don’t comply with state regulations. They could also be responsible for the claims expenses of the uninsured and injured employee. 

How do employers purchase a Workers’ Comp policy? 

All employers are guaranteed coverage because North Dakota uses a monopolistic state fund, and there is no private insurance. 

Are there worker types coverage might exclude?

• Some real estate brokers
• Farm and ranch workers
• Owner, partner, corporate officer, or spouse
• Domestic workers
• Newspaper delivery workers
• Some religious workers
• Some railroad employees

Where can you find Workers’ Comp policy details?

The North Dakota Workforce Safety and Insurance serves as the program administrator and provides more information. 

Ohio

Do employers have to provide Workers’ Comp Insurance? 

Any business with one or more employees must provide coverage. 

Are there noncompliance penalties? 

Businesses who fail to comply with state regulations, including keeping up with the payment schedule, could face a fine of 1% of the premium if late or $30 and up to 15% of the premium due.  

How do employers purchase a Workers’ Comp policy? 

All employers are guaranteed coverage because Ohio uses a monopolistic state fund, and there is no private insurance. 

Are there worker types coverage might exclude?

• Volunteers
• Domestic workers

Where can you find Workers’ Comp policy details?

The Ohio Bureau of Workers’ Compensation is the program administrator and provides details. 

Oklahoma

Do employers have to provide Workers’ Comp Insurance? 

Any business with employees must obtain coverage. 

Are there noncompliance penalties? 

Noncompliant businesses could face daily fines of $1,000 and stop-work orders until coming into compliance. They will also be responsible for lawsuits from uninsured and injured employees.

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers or self-insure. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can buy coverage from the Oklahoma Assigned Risk Pool.

Are there worker types coverage might exclude?

• Real estate brokers
• Some horticulture workers
• Social services employees
• Sole proprietors
• Volunteers
• Domestic servants
• Employees of youth leagues
• Some leased vehicle operators
• Businesses who employ less than five employees related by marriage or blood

Where can you find Workers’ Comp policy details?

The Oklahoma Workers’ Compensation Commission serves as the program administrator and provides more information. 

Oregon

Do employers have to provide Workers’ Comp Insurance? 

Any business with one or more employees must provide coverage. 

Are there noncompliance penalties? 

Businesses that fail to comply with state regulations could face a minimum fine of $1,000 or twice the amount of the premium they should have been paying. Additional fines of $250 each day of noncompliance and jail time could follow.

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can purchase coverage from competitive state funds.

Are there worker types coverage might exclude?

• Casual employees
• Inmates or wards of a state institution

Where can you find Workers’ Comp policy details?

The Oregon Workers’ Compensation Division serves as the program administrator and provides further information. 

Pennsylvania

Do employers have to provide Workers’ Comp Insurance?

Any business with one or more employees must purchase coverage. 

Are there noncompliance penalties? 

Noncompliant businesses could face a fine from $2,500 to $15,000, depending on whether the act was intentional. Also, they could face jail time and up to seven years in prison. The state’s fund will cover any benefits for employees during the business’s noncompliance timeframe; however, the company will have to pay the state back, including interest, fees, and additional penalties. 

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can purchase coverage from competitive state funds.

Are there worker types coverage might exclude?

• Casual employees

Where can you find Workers’ Comp policy details?

Serving as the program administrator, the Pennsylvania Department of Labor and Industry provides further guidance. 

Rhode Island

Do employers have to provide Workers’ Comp Insurance? 

Any business with one or more employees must obtain coverage.

Are there noncompliance penalties? 

Noncompliant businesses could face a fine of $250 plus an additional $1,000 every day they don’t comply. It could lead to up to two years in prison, a $10,000 fine, and stop-work orders until coming into compliance.

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can purchase coverage from competitive state funds.

Are there worker types coverage might exclude?

• Real estate brokers
• Sole proprietors and partners 
• State employees
• Casual employees
• Domestic service employees
• Nursery workers
• Salespeople
• Farmers and farmworkers

Where can you find Workers’ Comp policy details?

The Rhode Island Department of Labor and Training serves as the program administrator and provides more details. 

South Carolina

Do employers have to provide Workers’ Comp Insurance? 

Any business with four or more employees must purchase coverage. 

Are there noncompliance penalties? 

Noncompliant businesses could be forced to cover all claim costs for all uninsured and injured employees. 

How do employers purchase a Workers’ Comp policy? 

Companies can purchase this coverage from private insurance carriers.

Are there worker types coverage might exclude?

• Casual employees

Where can you find Workers’ Comp policy details?

The South Carolina Workers’ Compensation Commission serves as the program administrator and provides more details. 

South Dakota

Do employers have to provide Workers’ Comp Insurance? 

Any business with employees must purchase coverage. 

Are there noncompliance penalties? 

Businesses that fail to comply with state regulations could face legal action from uninsured and injured employees, including medical expenses, plus double the amount of disability income or death benefits.

How do employers purchase a Workers’ Comp policy? 

Companies can purchase this coverage from private insurance carriers.

Are there worker types coverage might exclude?

• Independent contractors
• Volunteers
• Farmworkers
• Domestic workers (only if working less than a 20-hour workweek)
• Some government officials
• Workfare participants

Where can you find Workers’ Comp policy details?

The South Dakota Department of Labor and Regulation serves as the program administrator and provides further information. 

Tennessee

Do employers have to provide Workers’ Comp Insurance? 

Any business with five or more employees must purchase coverage. 

Are there noncompliance penalties? 

Businesses that fail to comply with state regulations could face $10,000 or more in penalties. They could also face a 25% penalty to an uninsured and injured employee. 

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can buy coverage from the NCCI as it manages the Tennessee Workers’ Compensation Insurance Plan. 

Are there worker types coverage might exclude?

• Undocumented workers

Where can you find Workers’ Comp policy details?

Serving as the program administrator, the Tennessee Department of Labor and Workforce provides further guidance. 

Texas

Do employers have to provide Workers’ Comp Insurance? 

Texas is the only state that doesn’t mandate workers’ compensation; it’s optional. 

Are there noncompliance penalties? 

Noncompliant businesses won’t face any penalties; however, they’re required to provide a safe work environment. Nevertheless, if a company chooses to purchase coverage and fails to comply with its requirements, it could face administrative penalties. 

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can purchase coverage from competitive state funds.

Are there worker types coverage might exclude?

• State universities
• Public employers
• Some construction contractors
• Motorbus companies
• Motor carriers
• Inmate employers involved in furlough programs
• Dealers of liquid propane gas and compressed natural gas

Where can you find Workers’ Comp policy details?

The Texas Department of Insurance serves as the program administrator and provides more guidance. 

Utah

Do employers have to provide Workers’ Comp Insurance? 

Any business with employees must obtain coverage. 

Are there noncompliance penalties? 

Noncompliant businesses could face $1,000 penalties, a legal injunction, and liability for benefits of uninsured and injured employees. 

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers or self-insure. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can purchase coverage from competitive state funds.

Are there worker types coverage might exclude?

• Some farmworkers
• Casual workers
• Domestic workers
• Real estate agents

Where can you find Workers’ Comp policy details?

The Utah Labor Commission is the program administrator and provides more information. 

Vermont

Do employers have to provide Workers’ Comp Insurance? 

Any business with one or more employees must purchase coverage. 

Are there noncompliance penalties? 

Businesses that fail to comply with state regulations could face a $100 per day penalty up to $5,000 and stop-work orders. 

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers or self-insure. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can purchase coverage from the Vermont Assigned Risk Pool.

Are there worker types coverage might exclude?

• Sole proprietors
• Casual employees
• Some agricultural employees
• Amateur athletes
• Real estate broker
• Salespeople
• Some corporation or LLC independent contractors
• Assistant judges

Where can you find Workers’ Comp policy details?

Serving as the program administrator, the Vermont Department of Labor provides more details. 

Virginia

Do employers have to provide Workers’ Comp Insurance? 

Any business with two or more employees must purchase coverage. 

Are there noncompliance penalties? 

Noncompliant businesses could face a daily civil penalty of $250 for every uninsured day, up to $50,000.

How do employers purchase a Workers’ Comp policy? 

Employers can purchase this policy from private carriers or self-insure. Also, if the business is unable to buy coverage from a private carrier due to it being a high-risk company, it can buy coverage from the Virginia Assigned Risk Pool.

Are there worker types coverage might exclude?

• Employees who work outside of the regular business course

Where can you find Workers’ Comp policy details?

The Virginia Workers’ Compensation Commission is the program administrator and provides details. 

Washington

Do employers have to provide Workers’ Comp Insurance? 

Any business with one or more employees must purchase coverage.

Are there noncompliance penalties? 

Noncompliant businesses could face a daily civil penalty of $250 for every uninsured day, up to $50,000.

How do employers purchase a Workers’ Comp policy? 

All employers are guaranteed coverage because North Washington uses a monopolistic state fund, and there is no private insurance. 

Are there worker types coverage might exclude?

• Corporate officers
• Sole proprietors
• Partners
• Domestic servants 
• Licensed electricians
• Maintenance workers
• Jockeys
• Entertainers
• Newspaper delivery personnel
• Some contractors
• Some agricultural workers (minors)

Where can you find Workers’ Comp policy details?

The Washington State Department of Labor and Industries is the program administrator and provides more guidance. 

West Virginia

Do employers have to provide Workers’ Comp Insurance? 

Any business with three or more employees must purchase coverage.

Are there noncompliance penalties? 

Businesses that fail to comply with state regulations could face a fine of $500 or more for the initial offense and up to $25,000 for offenses thereafter. They also face a stop-work order, late penalties, and interest for unpaid compensation contributions. 

How do employers purchase a Workers’ Comp policy? 

Companies can purchase this coverage from private insurance carriers.

Are there worker types coverage might exclude?

• Federal employees
• Casual employees
• Domestic servants
• Some religious workers
• Some agricultural employers
• Volunteer police or rescue
• Longshore and harbor workers
• Professional sports employees

Where can you find Workers’ Comp policy details?

The state of West Virginia is the program administrator and provides further details. 

Wisconsin

Do employers have to provide Workers’ Comp Insurance? 

Any business with three or more employees must purchase coverage. 

Are there noncompliance penalties? 

Noncompliant businesses could face a fine of $750 or double the amount of the premium they should have been paying, whichever is more significant. They could also face a stop-work order and be held financially responsible for the benefits of uninsured and injured employees.

How do employers purchase a Workers’ Comp policy? 

Companies can purchase this coverage from private insurance carriers.

Are there worker types coverage might exclude?

• Some federal workers
• Domestic workers
• Some farmworkers
• Volunteers
• Some real estate agents, brokers, and salespeople
• Native American tribal enterprises workers

Where can you find Workers’ Comp policy details?

Serving as the program administrator, the Wisconsin Department of Workplace Development provides further guidance. 

Wyoming

Do employers have to provide Workers’ Comp Insurance? 

All businesses with employees must purchase coverage.

Are there noncompliance penalties? 

Businesses that fail to comply with state regulations could face fines, stop-work orders, jail time, and legal liability for uninsured and injured employees. 

How do employers purchase a Workers’ Comp policy? 

All employers are guaranteed coverage because Wyoming uses a monopolistic state fund, and there is no private insurance. 

Are there worker types coverage might exclude?

• Independent contractors
• Sole proprietors
• Casual employees
• Some volunteers
• Foster parents
• State childcare workers
• Corporate officers
• Professional athletes
• Employees of the federal government
• Elected officials

Where can you find Workers’ Comp policy details?

Serving as the program administrator, the Wyoming Department of Workforce Services provides details. 

Understanding the details of what coverage your company needs can be a confusing process. Founder Shield specializes in knowing the risks your industry faces to make sure you have adequate protection. Feel free to reach out to us, and we’ll walk you through the process of finding the right policy for you. 

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Want to know more about Workers’ Compensation insurance? Talk to us! You can contact us at ​info@foundershield.com​ or create an account ​here​ to get started on a quote.