Workers’ compensation insurance is something that is regulated on a state-by-state matter. This is in opposition to other types of regulations which, of course, operate at the federal or national level. Therefore, business owners and managers looking for information about the requirements for the type of coverage they need and other regulations cannot simply look for a one-size-fits-all policy. They need to look specifically at their own state to see what the requirements are where they do business.
What is one of the key points of the differences in state’s workers’ compensation requirements? The most common point of difference relates to the number of employees a business has before it is required to provide adequate coverage. Then expanding on this, there’s also the point of the industry you’re in, which in your state can affect or change the headcount threshold.
Combined, those are the two most common and important distinctions. What you will see is that many states have customized their workers’ compensation regulations to reflect important local industries as well. So, building on all the points above, let’s look at some specific examples.
Tennessee has long been known as a center for coal mining. Therefore, in the state, all employers in the coal mining industry are required to have workers’ compensation, regardless of the number of employees. This is also true in the state for construction companies, but is also more common in other states. In Tennessee, if you are not in construction or coal mining, the requirement changes to a limit of five or more employees.
As another example, look at the state of Florida. There, agriculture reigns supreme as one of the state’s key industries. Therefore, in the agricultural industry, the requirement is that employers with six or more regular employees, or 12 or more temporary employees working more than 30 days, must provide workers’ compensation. Construction companies must provide coverage regardless of the number of employees, and meanwhile, all other businesses in the state must provide coverage if they have four or more employees.
Other states simplify things a bit. For example, in Louisiana, all employers are required to carry workers’ compensation insurance unless they are exempt.
The best course of action is to consult with an experienced professional who knows the ins and outs of your state’s policies, what you need, and also how you can get a great deal. Independent brokers should be able to ease the hassle of the process for most business owners by connecting them with trusted providers and ensuring affordable rates.