We often have clients who worry that their employer might not have workers’ compensation insurance. They aren’t sure what the requirements are for their employers. So, it’s not uncommon that we get the question, “Is my employer required to have workers’ comp insurance?”
Which Employers are Required to Have Workers’ Comp Insurance?
Nine times out of ten, an employer is required to have workers’ comp insurance! Generally, any employer who regularly employs four or more workers (either full-time or part-time) is required to have workers’ comp insurance and is not allowed to opt out of this requirement.
There are a few exceptions, however, and they are:
- Agricultural employees
- Railroad and Railway express companies and their employees
- Textile Hall Corporation
- Certain commission paid real estate agencies
- Employers who had a total annual payroll of less than $3,000 in the previous year
Although these employers are not required to carry workers’ comp insurance, any employer may purchase coverage. Therefore, regardless of who your employer is, it is always worth asking them if they carry workers’ comp insurance. You may find that you are in fact covered.
What are the Consequences of an Employer Not Having Workers’ Comp Insurance?
If an employer is required by law to have workers’ compensation insurance but fails to comply, there can be serious consequences. The consequences can vary depending on the state, but some of the most common ones include:
1. Legal Penalties
Employers who fail to provide workers’ compensation insurance can face legal penalties. These penalties can range from fines to criminal charges.
2. Lawsuits
When an employee is injured on the job and the employer does not have workers’ compensation insurance, the employee can sue the employer for damages. If the employee wins the lawsuit, the employer can be ordered to pay a significant amount of money.
3. Loss of Business License
In some states, employers who do not have workers’ compensation insurance can lose their business license. This can be devastating for a business, as it can result in the closure of the company.
4. Damage to Reputation
If word gets out that an employer does not have workers’ compensation insurance, it can damage the company’s reputation. Potential employees may be hesitant to work for the company, and customers may be hesitant to do business with them.
5. Personal Liability
In some cases, if an employer does not have workers’ compensation insurance, they can be held personally liable for any injuries that occur on the job. This means that the employer’s personal assets could be at risk in the event of a lawsuit.
What Should You Do If You are Injured at Work and Your Employer Does Not Have Workers’ Compensation Insurance?
If you are injured at work and your employer does not have workers’ compensation insurance, you may feel like you are out of options. However, there are steps you can take to protect yourself and ensure that you receive the compensation you deserve.
First, seek medical attention immediately. Your health and well-being should always be your top priority. Once you have received medical treatment, document everything. Keep records of your medical bills, doctor’s notes, and any other relevant documents. This will be important evidence if you decide to pursue legal action.
Next, consult with an experienced workers’ compensation attorney. They can help you navigate the legal system and determine your options for compensation. They may also be able to negotiate a settlement with your employer outside of court.
If your employer is not willing to provide compensation, you may need to file a lawsuit. Keep in mind that this can be a lengthy and expensive process, so it’s important to have a strong case and the support of a skilled attorney.
Remember, just because your employer does not have workers’ compensation insurance does not mean that you are not entitled to compensation for your injuries. Take action to protect your rights and hold your employer accountable.
If you have specific concerns as to whether or not your employer should be carrying workers’ compensation insurance, don’t hesitate to ask an attorney. An experienced attorney, such as those at Oxner + Permar will be able to tell you specifically whether or not if you should be covered.
