Understanding your workers' compensation insurance coverage requirements is extremely important:


Workers' compensation insurance is something that is regulated by the state from state to state. This is in contrast to other types of regulation which, of course, operate on a federal or national basis. Therefore, business owners and managers who are looking for information about the type of coverage they need and other regulations can only look for one size fits all policies. They need to take a special look at their own situation to see what requirements are there.

What is one of the key points of state differences in workers' compensation claims? The most common point of difference concerns the number of employees a business has before it is required to provide proper coverage. Expanding on from there, there is also the point at which industry you are importing, which may affect or change the threshold of that employee's number in your state.

Combined, these are the two most common and important differences. What you will see is that many states have developed compensation rules for their employees to reflect local industries as well. So, based on all of the points above, let's look at some concrete examples.

Tennis has long been known as a coal mining hub. Consequently, all employers in the coal mining industry in the state should have workers' compensation regardless of the number of workers. This is also true for the construction business in the state, but it is more common in other states. In Tennessee, unless you are in construction or coal mining, the requirement then as a threshold changes to five or more workers.

As another example, look at the state of Florida. There agriculture dominates as one of the most important industries of the state. Consequently, the requirement in the agricultural industry is that employers with six and more full-time employees or 12 and more seasonal workers who work more than 30 days must provide workers with compensation. The construction business must provide coverage irrespective of the number of their employees, and all other state-owned enterprises must provide coverage if they have four or more employees.

Other states simplify things a bit. For example, all employers in Louisiana are required to have workers' compensation insurance, unless otherwise excluded.

The best course of action is to consult with an experienced professional who knows your country's politics and foreign policy, what you need, and how you can achieve much. Independent brokers should be able to alleviate the complexity of the process for most business owners by connecting them to trusted providers and closing them at affordable prices.