Who needs a Workers Comp policy?

Who needs a Workers Comp policy?


By Travis Johnson, Broker

Workers compensation or “work comp” insurance provides income replacement and medical benefits to employees injured in the course of employment.   For the most part each individual state regulates the work comp requirements that protect workers within its borders.  The exceptions being postal, maritime and railroad workers which are protected under federal statutes.

In addition to the different state to state regulations, work comp requirements can vary based on business structure and industry.  It can easily become difficult for an employer to keep track.

In Missouri employers in the construction industry must carry workers comp insurance even if they have just one employee. Employers in all other industries are required to carry work comp insurance when they have five or more employees.  Missouri exempts the following workers from the state requirements:

  • Farm Labor
  • Domestic servants in private households
  • Occasional labor performed for private households
  • Qualified real estate agents and direct sellers
  • Certain unpaid volunteers
  • Certain individuals working for amateur youth programs

The state of Illinois requires all employers with one or more employees to carry work comp insurance, regardless of industry.  Any out of state employer that conducts work inside the state must also obtain an Illinois specific work comp insurance policy for the corresponding work. Illinois exempts real estate brokers and small farms from the state requirements.

In either state, sole proprietors, partners and members of an LLC can elect to be covered or excluded from coverage to save cost. However, when contracting work for another business, for example a sub-contractor working for a general contractor, they can require coverage to satisfy their own work comp requirements.

Even though the requirements may vary, workers compensation insurance is important protection for any employer to have.   If you are looking for work comp solutions, or just need advice, feel free to call me today!

Travis Johnson | 636.536.2229 x 5 | TravisJ@ThomasInsuranceAdvisors.com

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