Workers Comp Requirements

[scagnt83]

I heard once that if a business has less than 4 employees they where not required to carry workers comp... is this true?
Is there any cut off such as this?
Does the owner count as an employee?

 

[djs]

Workers comp rules vary a LOT state to state. Usually, 1 employee and workers comp is required.

Owners are rarely covered by workers comp.

Dan

 

[arnguy]

As Dan stated, it depends on the state laws. There is no uniform WC nationwide standard regulation.

 

[scagnt83]

good to know. thanks.

i found out for sure that here in SC if you have under 4 employees you are not required to carry it.

 

[djs]

Remember though, not having workers comp leaves the owners liable for workplace injuries. Somebody gets hurt, they will receive a bill.

But doesn't medical insurance pay the bill? Usually, workplace injuries where workers comp would have paid if there could be a policy are excluded from health insurance. Now, if it's minor, nobody bats an eye. Something major and the owner will get the bill almost guaranteed.

You may find some health plans that do provide 24 hour coverage (including on the job), but they are more rare and are usually marketed specifically for this coverage.

Again, state rules trump everything (except federal rules). Just be careful about making recommendations about workers comp coverage changes.

Dan

 

[Air Jer]

& as Dan says, the owner gets the bill. If someone chooses not to purchase work comp, I'd make sure they signed off on the fact it was offered and they refused the coverage.