Workers compensation insurance is something which is regulated on a state by state matter. This is as opposed to other types of regulations which of course operate on a federal or nationwide basis. Therefore, business owners and managers looking for information on requirements for the type of coverage they need and other regulations can’t just look up 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’s one of the key points of differences in a state’s workers compensation requirements? The most common point of difference relates to the number of employees that a business has before it is required to provide proper coverage. Expanding on this then, there’s also the point of which industry you’re in, which in your state may affect or change that employee number threshold.
Combined, those are the two most common and important distinctions. What you’ll see is that many states have customized their workers compensation regulations to reflect local industries of importance, too. So, building on all of the above points, let’s look at a few specific examples.
Tennessee has long been known as a hub for coal mining. Therefore, in the state, all employers in the coal mining industry have to have workers compensation, regardless of number of employees. This is also true in the state for construction businesses, but that’s more common in other states as well. In Tennessee, if you’re not in construction or coal mining, the requirement then changes to five or more employees as the threshold.
As another example, look to 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 seasonal employees working more than 30 days, must provide workers compensation. Construction businesses must provide coverage regardless of their employee count, 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 instance, in Louisiana, all employers are required to have workers compensation insurance unless otherwise exempted.
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 alleviate the hassle of the process for most business owners, connecting them to trusted providers and locking in affordable rates.