Workers’ Compensation Exemption
While workers’ comp insurance varies state by state, certain companies can elect for workers’ compensation exemption. Because workers’ compensation varies by occupation, some may be exempt from workers’ compensation simply by the nature of their work. Regardless of the reason, a workers’ compensation exemption prevents an employee from receiving workers’ comp benefits.
To obtain an exemption from workers’ compensation, your business will need to go through your state’s screening process. Typically, this involves filling out a form that asks for information on the employee and the type of company you own. Depending on the state, this requires proof of up-to-date business licenses, proof of ownership, and contact information on your business’s workers’ compensation insurance carrier. The workers’ comp exemption form and required documents will be filed with the closest workers’ compensation district office. This office completes the workers’ comp exemption process.
There may be other reasons why you may want to opt for exemptions, such as cutting workers’ comp costs. While this is something that can be done, risks are also in play. Say you opt of workers’ comp coverage and one of your employees is injured on the job. They have separate health insurance, but his or her claim may not be covered. If their insurance is informed that it was a work-related incident they may not receive benefits. And there is a possibility that the injury may have to be paid for out of pocket.
For example, let’s say you opt out from offering workers’ compensation insurance. While carrying a heavy box at work, one of your employees injures his back. His medical insurance won’t cover the expenses because it is a work-related injury. And because you opted out of workers’ compensation insurance, either you or your employee has to cover his medical expenses out of pocket.
Who Is Exempt From Workers’ Compensation Insurance?
In most cases, if you are injured on the job, you can receive workers’ compensation benefits. But for some jobs, workers’ compensation insurance may not be available. These jobs could include:
- Independent contractors
- Government workers
- Shop owners, self-employed
- Railroad employees
- Farm workers, undocumented workers
- Maritime workers
In addition to job occupations, there are other factors that may exclude workers’ compensation benefits that vary state to state. These factors could include:
- Mental health issues (unless proven that they are due to the occupation)
- Injury inflicted on employees in a physical argument
- Self-inflicted injuries
- Injury as a result of policy violation
- Injuries that occur while not at work
More Details About Workers’ Comp Exemption
If you have questions about what workers’ compensation is, types of workers’ compensation, or other related questions, don’t hesitate to reach out to The Hartford. We have workers’ compensation programs designed to support companies large and small. Our programs not only promote employee safety, but also help get personnel back to work as soon as possible. If necessary, some of our programs also provide help to get employees to other transitional work or training for new skills to complete this work.
Purchasing workers’ compensation insurance can sometimes feel intimidating. Don’t opt out of workers’ compensation insurance coverage. Instead, find the right type of workers’ compensation for you and your employees.
With state regulations, there are many factors you have to take into consideration. This can make the process complex if you’re doing business across state lines. That’s why it’s important to work with an insurance company that has experience working with businesses in your state.
When you choose The Hartford, you can breathe easy knowing your business is protecting your employees with industry-leading care. If a workplace accident sidelines an employee, they’ll have access to our patented claims experience. They’ll also have access to our claims specialists and response teams, who consistently receive top scores for customer satisfaction.*
At The Hartford, we want to take the hassle out of workers’ compensation insurance so you can focus on running your business. Get a quote today for workers’ compensation insurance to learn how we can help protect your business and employees.