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Workers' Compensation Insurance is mandatory for all employers to carry and pay for in all states. (Exceptions for self-insured employers are made; this is another whole topic). Employees are NEVER required to pay any part of the premium for this coverage. It is the EMPLOYER that is 'covered' and the purpose is to protect employers from damages awarded in lawsuits that could conceivably put them out of business. Most workers' compensation laws, in each state, went into effect in the early 1800's, during the industrial revolution, when employees were suffering serious injuries and either 1.) receiving NO compensation at all, or 2.) being awarded compensation via the court systems which generally crippled the employers, thereby eliminating jobs and income for entire companies. States realized that provisions needed to be made that would protect the injured workers and their families, but enable employers to continue operating and providing employment and income. Each state has a department, bureau, commission, etc., that regulates the laws pertaining to workers' compensation. Each state also has a 'state fund', which will provide insurance coverage to employers, for a premium. Forty-eight of the states also have competition with private insurers; three states have 'exclusive funds', meaning only the 'state fund' provides WC coverage: Ohio, Washington, and West Virginia. This means that employers MUST purchase their coverage from the state fund or be self-insured. (They must, of course, show due diligence, showing themselves financially able to be self-insured.)

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โˆ™ 2007-05-23 14:34:36
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Q: What is workmen's comp insurance?
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If you do not carry workmens comp insurance can a company you are doing work for charge you for workmen's comp insurance?


What is workmens comp?

A insurance provided by employers for injured employees. There is a provision in Texas law whereby an employer may elect not to purchase workmens' comp insurance. About 33% of Texas employers do not have WC insurance.

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You are allowed up to three employees before you have to do workman's comp.

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Answer is No workmens comp is only applicable to injuries sustained while on the job, damages to a vehicle are not part of workmens comp.

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I am self employed in Ohio. Am I required to have workmens comp on myself.

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What is the criteria to be able to buy workmens comp ins?

AnswerFederal law developed the work comp system and every state has a unique form of it. If you have a single employee, then you need work comp insurance. No matter the state. If the employee becomes injured, if you don't have work comp insurance they can sue your company and you personally for not carrying the work comp insurance.You can be a sole P, INC, LLC, or partnership and get work comp insurance. You can even get work comp insurance for yourself as an owner.Check with a local insurance broker to make sure you are following your states law.

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