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When is an Employer Required to Have Workers’ Compensation Insurance?

By: Virtus Law Group, Birmingham Alabama.


Workers’ compensation insurance plans provide benefits to employees if they suffer an on-the-job injury.  They cover an employee’s medical treatment costs for an injury that occurred on the job or in some instances a work-related illness. But when is an employer required to carry workers’ compensation insurance? The simple answer is when an employer has five or more employees.  However, this can get a little more detailed.  Under Alabama law part-time workers, corporate officers, and members of an LLC count as employees for purposes of determining if workers’ compensation is required.  For example, a small company that employs only four employees may at first glance look as if they are not required to carry workers’ compensation.  However, the owner of the company would count as the fifth employee thereby requiring that the company carry workers’ compensation insurance.


Employers also need to have proof of coverage to prove that they are carrying workers compensation insurance.  This proof is known as a certificate of insurance and can provide details for employees on what the policy covers.


If you have been injured on the job and feel that workers’ compensation should cover your on-the-job injury, call one of the experienced attorneys at Virtus Law Group.


Founded in Birmingham, Alabama Virtus Law Group is a Personal Injury and Labor and Employment firm serving the people of Alabama.



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