Worker's Compensation

A workers compensation insurance policy protects a business and its owner(s) from claims and lawsuits by employees who experience a work-related injury, illness, or disease – either sustained while working or due to business operations. Workers compensation insurance also assures that an injured worker is provided medical care as well as compensation for a portion of the income they would lose while they are unable to return to work. 

Employers have a legal obligation (based on state requirements) to have a workers compensation policy to ensure their employees are covered when accidents happen.

The workers compensation benefits are provided regardless of who was at fault in the accident. In the unfortunate event of a catastrophic accident, for example, if a worker is killed while working, workers comp also provides death benefits for the worker’s dependents.

Employers Liability covers an employer’s common law or tort liability for employee injuries that fall outside the scope of the state laws or acts. This liability is separate and distinguished from the liability that workers compensation laws imposed.

Workers compensation insurance must be purchased as a separate policy. While Business Owners Policies (BOPs) are sold as a package, they do not include coverage for workers injuries.

What does Worker’s Compensation Insurance policy include?

The policy consists of the Information Page, the coverage form, all endorsements and schedules at the policy inception. This is an insurance contract between your company and the insurance company. It includes all agreements that relate to the insurance and can only be changed by written endorsements the company issues.

  • Part One – Worker’s Compensation Insurance: Workers compensation insurance applies to bodily injury by accident that occurs during the policy term. It also includes bodily injury by disease caused or aggravated by employment conditions. The insurance company pays benefits you are required to pay when they are due.
    The policy covers your entire liability as an employer under the workers compensation laws of the state or states involved. This includes statutory provisions included in the policy, if required by state law.
  • Part Two – Employers Liability Insurance: Employers liability insurance protects you against suits brought against you by employees for injuries due to accidents or diseases that arise from their employment by you. This coverage is subject to specific limits and has exclusions.
  • Part Three – Other States Insurance: Coverage applies to only the states where you conduct business. These “other states” are typically listed in item 3.C. on the Information page. This provides coverage if an injury occurs in another state but there are limitations. The insurance company must be notified, in writing, before you begin work in another state or there may not be coverage for claims in that state. The other states must be listed on the policy.
  • Part Four – Employers Contractual duties to the insurance company if an employee is injured: The most important requirement is that the claim must be reported immediately to the insurance company. You must cooperate with the insurance company.
  • Part Five – Premium: This section explains how the policy premium is determined, based on the manuals, rules, classifications, rates, and rating plans in effect on the policy inception date. It explains how to arrive at and use classifications and explains remuneration or payroll, as well as how premium is calculated and premium audit’s role in determining the final premium. It also explains what records must kept to determine the correct and final premium.
  • Part Six – Conditions: This section addresses several key policy conditions such as inspections, limitations and cancellation terms. This part spells out the terms and how they effect both parties.

What is an Workers’ Compensation Experience Rating Modification Factor?

One of the main components in calculating your workers’ compensation premium is the experience modification factor, often referred to as the experience mod or mod factor. The experience modification factor is unique to each company and is based on a number of factors. In calculating the experience mod factor, your company’s claims experience is compared to the experience of other employers of similar size and business type.

The mod factor, when used in the calculation of premium, represents either a credit or debit that’s applied to the workers’ compensation premium. A mod factor greater than 1.0 is a debit mod, which means that losses are worse than expected and an increase will be added to the premium. A mod factor less than 1.0 is a credit mod, which means losses are better than expected, resulting in a discounted premium.

Who calculates the experience modification?

The National Council of Compensation Insurance (NCCI) calculates the experience mod for most states. The NCCI State Map is a convenient reference of states whose insurance departments have designated NCCI as the licensed rating and statistical organization. The information on experience modification in this article is based on NCCI.

States that don’t use NCCI have their own rating bureaus, which have some form of experience rating built into the calculations. Four of those states – North Dakota, Ohio, Washington and Wyoming – are monopolistic states. A monopolistic state requires workers’ compensation coverage to be provided exclusively by that state’s designated workers’ compensation program. Insurance through private insurance companies isn’t allowed.

What data is used in the calculation of the experience mod?

There are many variables that go into the calculation of the experience mod. If you would like detailed information on how the mod is calculated, please see NCCI’s ABC’s of Experience Rating. Some of the most important variables are the frequency, severity, payroll, classification codes and whether the claim is an indemnity (lost-time or impairment rating) or a medical-only claim.

Frequency – This is a reflection of the safety program and the management controls in place. To have frequency increase the mod faster, NCCI uses what is called a split point. The split point breaks claims into primary and excess losses. For many years (through the end of 2012), the split point was $5,000. NCCI proposed an increase to the primary/excess split point to an inflation-adjusted $15,000 over a three-year transition period, and an annual increase to this amount using a countrywide inflation index. Currently, the primary is the first $13,500 of a claim for 2014, increasing to $15,000 for 2015 and then adjusted for inflation yearly starting in 2016.

For example, if we used a claim whose accident year was 2014 and the claim was $25,000, the first $13,500 would be primary loss and the remaining $11,500 would be excess loss.

Severity – This is represented by the portion of the claim that is over the primary split point, or the excess portion of the claim. For 2014, this is anything in excess of $13,500. Each state also puts a cap on large claims, which can be as low as $150,000, or as high as $400,000. A significantly large claim will have only so much impact on the employer’s mod. Excess losses represent severity in the calculation.

For example, in a claim with a dollar amount of $600,000, the first $13,500 is primary and the claim is capped at the state’s large-claim cap. If the state’s large-claim cap is $300,000, the excess on the claim is $286,500. The remaining $300,000 would not be used in the employer’s loss data.

Classification codes – This is a three or four-digit code assigned by NCCI or a state rating bureau. Classification codes help differentiate between the various job duties or type of work performed by employees. Each classification code has a rate attached to it. Higher hazard classification codes have a higher rate than the lower hazard classification codes. Rates are different for each classification for each state and are based on the loss history in that state. The classification system contains more than 700 unique codes.

Medical vs. indemnity claims

Mod calculations reward employers who provide light-duty jobs or have a return-to-work program. When information on claims is sent to NCCI by insurance carriers, the information on the claim has an injury code that represents the severity of the claim. The nine injury codes include:

  1. Death
  2. Permanent Total Disability
  3. Major Permanent Partial Disability
  4. Minor Permanent Partial Disability
  5. Temporary Total or Temporary Partial Disability
  6. Medical Only
  7. Contract Medical or Hospital Allowance
  8. Compromised Death – CA only
  9. Permanent Partial Disability

In approved states, when a claim is medical only (no lost-time or disability payments), the calculation of the mod reduces the value of the claim by 70%. For example, if you have a $10,000 medical-only claim, the claim is reduced by 70%, or $7,000; only $3,000 is used to calculate the experience mod. For a lost-time claim, the entire $10,000 is used to calculate the experience mod; this is called an experience rating adjustment.

The following states have approved the experience rating adjustment: Alaska, Alabama, Arkansas, Arizona, Connecticut, District of Columbia, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, Nebraska, New Hampshire, New Mexico, Nevada, Oklahoma, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Virginia, Vermont, Wisconsin and West Virginia.

What is the key to controlling your experience mod?

The key to controlling your experience mod is knowing the variables your company can affect:

  • Frequency – Having good accident-prevention programs and enforcing polices and work practices will help reduce claims.
  • Severity – Having cost containment programs will assist in keeping costs down. Examples of programs that will help with cost containment include return-to-work programs and designated physicians in the states where it is possible.
  • Payroll – Unfortunately, payroll is not an area your company can impact much to change your mod.
  • Classification codes – Unfortunately, this is not an area your company can impact much to change your mod. Classification codes are approved by individual states and are based on loss history for that particular state.
  • Medical vs. indemnity claims – Aggressive return-to-work programs will keep more claims at the medical-only level, which will help in reducing the amount of money used in the calculation – especially if you are in a state that uses the experience rating adjustment.

The key to controlling your experience mod – and ultimately your workers’ compensation premium – is accident prevention and controlling costs after an accident happens. Preventing accidents involves having good safety programs and enforcing those programs with your employees. Controlling costs involves:

  • Having designated physicians in states where this is possible
  • Developing a good return-to-work program
  • Having an effective accident investigation program
  • Training employees and supervisors on their responsibilities for safety and enforcing violations

What is Employers Liability Insurance?

Workers’ compensation provides some level of coverage for medical expenses and lost wages for employees or their beneficiaries when an employee is injured, falls sick, or is killed as a result of their job.

However, if an employee decides to sue their employer for punitive damages such as pain and suffering due to WC not adequately covering their loss or negligence, Employers Liability Insurance policy can help limit their losses by including, as a condition of the payout, a clause that releases the employer and their insurance company from further liability related to the incident in question.

In many states, Employers liability insurance in included in a Workers Compensation policy.

The main difference between workers comp and Employers Liability is that workers compensation applies to statutory benefits the named insured must pay. Employers liability applies to common or tort law or other damages for which the named insured is liable.

Employers’ liability coverage is designed to cover expenses not covered by workers’ compensation or general liability insurance. In the event of a payout under an employers’ liability insurance policy, an employer can help limit their losses by including, as a condition of the payout, a clause that releases the employer and their insurance company from further liability related to the incident in question.

Even with adequate employers’ liability insurance coverage, claims can become complicated and costly for employers, particularly in the case of a lawsuit. The cost of defending against such a suit itself can be a major financial loss.

How Much Does Workers Compensation Policies Cost?

The factors used to determine the cost of a workers compensation policy include, the industry and associated class codes, experience rating, loss trends, carrier appetite for specific industries, safety protocols and other certifications that provide further assurance that a business is a good risk.

What are the Workers Compensation Insurance Requirements & Regulations by State?


NCCI state.  Employers with more than four employees (full or part-time) must have Workers Comp insurance (or obtain coverage via another approved method.) 

Alabama Department of Insurance
201 Monroe Street, Suite 1700
Montgomery, AL 36104
Phone: 334-269-3550
Fax: 334-241-4192
[email protected] – Regarding Insurance Questions



NCCI state.  Arizona requires all employers with one or more employees to maintain valid Workers Compensation insurance (or be approved for self-insurance.)

The state agency with jurisdiction over claims, and over employer compliance with Workers Compensation insurance requirements, is:  Arizona Industrial Commission 

Insurance disputes (such as disputes over proper Workers Compensation insurance premiums) are the jurisdiction of:

Arizona Department of Insurance 
2910 N. 44th St. Suite 210 
Phoenix, Az. 85018-7269   
Contact Information



NCCI state. Most employers with three or more employees must purchase Workers Compensation insurance.  For employers in the building trades, the threshold is two or more employees.  

Where a subcontractor is used, the threshold is one employee.  

Sole proprietors or partners who devote full time to the business are covered unless they elect to be exempted.  (This is different than in many other states, where sole proprietors and partners are not automatically eligible, and must elect to be covered.)  Executive officers of a corporation may choose to exclude themselves (but must cover employees.)

In Arkansas, if a sole proprietor or partner elects not to obtain Workers Compensation coverage for themselves, a primary contractor that utilizes their services is not liable for the Workers Compensation liability (this is different than the way this issue is treated in many other states.)  However, a prime contractor would still be liable for uninsured workers of a subcontractor if those workers are not the sole proprietor or a partner.

The government agency in Arkansas that has jurisdiction over claims and over enforcing employer compliance with Workers Compensation coverage is:

The Arkansas Workers Compensation Commission
324 Spring Street
P.O. Box 950
Little Rock, Arkansas 72203-0950
Telephone 1-501-682-3930 / 1-800-622-4472        

The government agency in Arkansas that has jurisdiction over disputes regarding Workers Compensation insurance premiums between employers and their insurance company is:

Arkansas Insurance Department
1200 West Third Street
Little Rock, AR 72201
(501)371-2600 or 1-800-282-9134



Not an NCCI state.  Instead, California, which is the largest single state market for Workers Compensation insurance, has its own separate rating bureau, the Workers Compensation Insurance Rating Bureau of California, or WCIRB.  This means that all the rules and regulations that govern Workers Compensation insurance classifications, premium computation, and experience rating are set out in manuals from WCIRB, not NCCI.  And thus the details about what kinds of work are assigned to which particular classification codes can be different in California.  And some of the fine details regarding how experience modification factors are calculated are different also.  

Contact information for the WCIRB is:
Workers Compensation Insurance Rating Bureau of California
525 Market Street, Suite 800
San Franscisco, CA 94105-2767  
Phone: 888.CA.WCIRB (888.229.2472) 
Fax: 415.778.7272
E-mail: [email protected]

Employers in California can choose between private insurance companies or the state-administered Workers Compensation fund, known as the State Compensation Insurance Fund, or SCIF.  An employer in California can also elect to self-insure for Workers Compensation, but this is typically feasible only for larger employers.

In California, as soon as an employer has a single employee, the employer must have Workers Compensation coverage (either from an approved insurance company, SCIF, or be approved for self-insurance.  A roofing company is required to have Workers Comp insurance even if it has no employees.  And unlike many other states, a real estate broker is required to cover its agents, even if they are independent contractors.

Contact information for the division that handles premium disputes is:
California Department of Insurance


This is another NCCI state. Colorado used to have a competitive state fund, but that state fund has been transformed into an insurance company that competes with other insurers.  

In Colorado, all public and private employers with one or more full or part-time workers must either purchase Workers Compensation insurance or be approved for self-insurance (which, as in most states, is only feasible for larger employers.)  There are a few exceptions to this, including:

  • Certain casual maintenance or repair work performed for a business for under $2,000 per calendar year
  • Certain domestic work, maintenance or repair work for a private homeowner that is not done full time
  • Licensed real estate agents and brokers working on commission
  • Independent contractors who perform specific for-hire transportation jobs
  • Drivers under a lease agreement with a common or contract carrier
  • Any person who volunteers time or services for a ski area operator
  • Persons who provide host home services as part of residential services and supports
  • Federal employees (covered under federal laws) Railroad employees (covered under federal laws) 
  • A corporate officer of a corporation or a member of a limited liability company may elect to reject the requirement to carry workers’ compensation insurance. The election to reject coverage is completed by providing written notice on a form available from the Division of Workers Compensation (part of the Department of Labor & Employment.)

A corporate officer is defined as the chairperson of the board, president, vice-president, secretary, or treasurer who is an owner of at least ten percent of the stock of the corporation and who controls, supervises or manages the business affairs of the corporation. 

A member is defined as an owner of at least ten percent of the membership interest of the limited liability company at all times and who controls, supervises, or manages the business affairs of the limited liability company.

Independent contractors are not considered to be employees of a business that hires them, as long as they meet the following criteria:

The independent contractor is free from the business’ control and direction over how the service is performed; and the individual must be customarily engaged in an independent business related to the service being performed.

These are the two key principles of independent contracting in Colorado.  A written contract may be helpful in proving independent contractor status. However, the actual facts of the work relationship are the most important evidence. 

Sole proprietors and partners in a business are not required to carry Workers Compensation insurance on themselves (but would be required to carry insurance as soon as they have any employees.)

Workers Compensation insurance premium disputes are the jurisdiction of:
Colorado Division of Insurance



Another NCCI state.  All employers are required to either carry insurance from an approved insurer, or to be approved as a self-insurer by the CT Workers Compensation Commission. 

Workers Compensation Commission
Capitol Place 
21 Oak Street
Hartford, CT 06106
Phone: (860) 493-1500 
Fax: (860) 247-1361

Disputes over Workers Compensation insurance premiums are handled by the Connecticut Insurance Department.

Connecticut Insurance Department
153 Market St.
Hartford, CT 06103
Mailing Address:
P.O. Box 816
Hartford, Ct 06142-0816
Phone: (860) 297-3800 (
800) 203-3447
Fax :(860) 566-7410



Employers with one or more employees are required to carry workers’ compensation insurance. 
Farm workers are exempt from the workers’ compensation statute, however, these employers may elect to provide coverage.

Delaware and Pennsylvania share a unique non-NCCI classification system which does not match up one for one with the NCCI classification system. 

Additionally, the premium portion of payroll is not deductible for purposes of calculating Workers’ Compensation premiums. 

Insurance is regulated by: 

Office of Insurance Commissioner 
841 Silver Lake Blvd., Rodney Building 
Dover, DE 19904 

The non-NCCI rating bureau is:
Delaware Compensation Rating Bureau

Workers’ Compensation is regulated by 
Office of Workers’ Compensation 
State Office Building, Sixth Floor 
820 North French Street 
Wilmington, Delaware 19801 


District of Columbia

The District uses NCCI manual rules.

Workers Compensation insurance premium issues are under the jurisdiction of:

D.C. Dept. of Insurance & Security Regulation 
810 First Street, NE, Suite 701 
Washington, DC 20002 
But Workers Compensation claims are under the jurisdiction of:

Office of Workers’ Compensation 
1200 Upshur Street, NW 
Post Office Box 56098 
Washington, District of Columbia 20011 



Florida is also an NCCI state, so premiums, classification codes, and experience modification factors are per the manual rules of the National Council on Compensation Insurance.

In Florida, non-construction employers must obtain valid Workers Compensation coverage once they have four or more full or part-time employees.

But employers in construction work must obtain Workers Comp coverage once they have one or more part-time or full time employees.

Sole proprietors and partners in the non-construction industry are automatically exempt from the law, but can elect to be covered. Non-construction industry corporate officers may elect to be exempt if: • The officer is listed as an officer of the corporation in the records of the Florida Department of State, Division of Corporations. • The corporation is registered and listed as active with the Florida Department of State, Division of Corporations. There is no limit to the number of corporate officers who can be exempt and there is no application fee. Non-construction exemptions are valid until a voluntary revocation is filed or the exemption is revoked by the Division.

Corporate officers or members of a limited liability company (LLC) in the construction industry may elect to be exempt if: • The officer owns at least 10 percent of the stock of the corporation, or in the case of an LLC, a statement attesting to the minimum 10-percent ownership. • The officer is listed as an officer of the corporation in the records of the Florida Department of State, Division of Corporations. • The corporation is registered and listed as active with the Florida Department of State, Division of Corporations. No more than three corporate officers per corporation or limited liability member are allowed to be exempt. A $50 fee is required for each application submitted to obtain an exemption. Construction exemptions are valid for a period of two years or until a voluntary revocation is filed or the exemption is revoked by the Division.

Disputes over Workers Compensation insurance premiums would be under the jurisdiction of:

Department of Financial Services 
200 E. Gaines Street 
Tallahassee, FL 32399 

Workers Compensation claims matters are the jurisdiction of:

Division of Workers’ Compensation 
2012 Capitol Circle 
SE Hartman Building 
Tallahassee, Florida 32399-0680 



An NCCI state. One important and unique rule in Georgia, however, is that the reallocation of payroll among classifications on a policy is considered to be a change in classification, and thus subject to the limitations placed on insurance companies regarding changes of classification.

In Georgia, an employer must obtain valid Workers Compensation coverage once the business has three or more full or part time employees.

More Georgia Information

Workers Compensation insurance premium matters are the jurisdiction of:
Insurance Commissioner 
2 Martin Luther King Jr. Drive SE 
716 West Tower 
Atlanta, GA 30334 

Workers Compensation claims are the jurisdiction of:

Georgia State Board of Workers’ Compensation 
270 Peachtree Street, NW 
Atlanta, Georgia 30303-1299 



An NCCI state. 

In Hawaii:

Any employer, other than those excluded below, having one or more employees, full-time or part-time, permanent or temporary, is required to provide WC coverage for the employees.

Excluded employment includes voluntary or unpaid workers for a religious, charitable, educational or nonprofit organization; student workers performing services for a school, university or college club in return for room, board or tuition; duly ordained, commissioned or licensed minister, priest or rabbi; domestic workers earning less than $225 (cash) per calendar quarter; domestic workers of public welfare recipients; certain twenty-five percent stockholders; all fifty percent stockholders; and real estate salespersons and brokers paid solely on a commission basis. An employer may, however, elect to cover the excluded employees.

Insurance is regulated by 
Insurance Division 
Dept. of Commerce & community Affairs 
P.O. Box 3614 
Honolulu, HI 96811 

Workers Comp claims are the jurisdiction of:
Department of Labor & Industrial Relations (DLIR) 



An NCCI state. In Idaho, most employers are required to have valid Workers Compensation coverage, as follows:  employers with one or more full-time, part-time, seasonal, or occasional employees are required to maintain a Workers Compensation policy unless specifically exempt from the law.

Insurance premiums are regulated by: 

Department of Insurance 
P.O. Box 83720
Boise, ID 83720-0041 

Idaho also maintains a competitive state fund for Workers Compensation, which means this state agency essentially competes with private insurance companies.

State Insurance Fund 
1215 West State Street 
Post Office Box 83720 
Boise, Idaho 83720-0044 

Workers Compensation claims are the jurisdiction of:
The Idaho Industrial Commission.



Illinois is an NCCI state, with some important and unique regulations lacking in other states. See our separate section, Workers’ Compensation in Illinois, for details. 

Insurance, including Workers’ Compensation, is regulated by

Department of Insurance 
320 W. Washington 
Springfield, IL 62767 

Workers Compensation claims in Illinois are the jurisdiction of:

The Illinois Workers Compensation Commission
More details about Illinois’ Workers Compensation rules can be found here.



Many people in the insurance business believe that Indiana is an NCCI state. This is not true. 

Indiana maintains its own independent rating bureau, the Indiana Compensation Rating Bureau. This bureau uses NCCI for ratemaking, and uses the NCCI Basic Manual, but does not always follow NCCI classification interpretations. For some classification codes, the Indiana rules can be significantly different than NCCI guidelines. Furthermore, the state exceptions for Indiana listed in the Scopes Manual are not complete. For classification decisions in Indiana, it’s best to talk directly to the ICRB. You can email questions to Jeff Hiland at [email protected] 

5920 Castleway West Drive 
Indianapolis, IN 46250 
P.O. Box 50400 
tel 317-842-2800 
fax 317-842-3717

Indiana also allows independent contractors in the construction trades, and Owner/Operator truckers, to file a Certificate of Exemption with the Indiana Department of Revenue. This certificate of exemption qualifies the independent contractor to not carry Workers’ Compensation insurance, and establishes that companies that use such independent contractors are also not liable for Workers’ Compensation liabilities or premium charges for those exempt independent contractors or owner/operators. 

Insurance, including Workers’ Compensation insurance, is regulated overall by 

Indiana Department of Insurance
311 W. Washington, Ste. 300 
Indianapolis, IN 46204 

However, according to published accounts, Indiana’s Insurance Department is kept deliberately powerless to actually do anything about insurance problems and complaints, so the above link is provided with a very large grain of salt.

In Indiana, Workers Compensation claims are the jurisdiction of:
The Workers Compensation Board of Indiana 



An NCCI state. Most employers in Iowa are required to have Workers Compensation coverage, although proprietors (independent contractors), limited liability company members and partners are not considered employees, according to Iowa government information here. 

Workers Compensation claims are the jurisdiction of:

Iowa Division of Workers’ Compensation 
1000 East Grand Avenue 
Des Moines, Iowa 50319-0209 
800-JOB-IOWA (562-4692) 
tel 515-281-5387 
fax 515-281-6501 



An NCCI state. In Kansas, valid Workers Comp coverage is required of all Kansas employers except for those in certain agricultural pursuits or those with a gross annual payroll of $20,000 or less. 

All payroll is taken into account, including that paid in Kansas or elsewhere. If the employer is a sole proprietor or a partnership, the wages paid to the owners and any of their family members are not used in the computation of the gross annual payroll. 

Per K.A.R. 51-11-6, the provision in K.S.A. 44-505 excluding the payroll of workers who are members of the employer’s family shall not apply to corporate employers. A corporate employer’s payroll for purposes of determining whether the employer is subject to the workers’ compensation act shall be determined by the total amount of payroll paid to all corporate employees even when a corporate employee has opted out of WC coverage.

Workers Compensation claims are the jurisdiction of:

Kansas Dept. of Labor–Workers’ Compensation 
800 SW Jackson, Suite 600 
Topeka, Kansas 66612-1227 



An NCCI state. With few exceptions, all Kentucky employers are subject to the Workers’ Compensation Act and are required to carry workers’ compensation insurance or become self-insured, even if they have only one part-time employee. There is an exemption for employers engaged exclusively in agriculture. More Kentucky information here.

Workers Compensation claims are the jurisdiction of:

Department of Workers’ Compensation Claims
1047 U.S. 127 South, Suite 4 
Frankfort, Kentucky 40601 
502-564-3070 ext 391



An NCCI state. Most employees in Louisiana are covered from the day they start employment. Employees may be fulltime, part-time, seasonal, or minors. 

Subcontractors and certain independent contractors may be considered employees if they are involved in the pursuit of the employer’s trade, business or occupation or if they are performing substantial manual labor. 

The law does contain some limited exemptions. Domestic employees, most real estate salespersons, uncompensated officers and directors of certain non-profit organizations, and public officials are specifically exempted. 

Most volunteer workers would not be entitled to benefits. Employers are required to have workers’ compensation insurance or to be approved to self-insure. 

More Louisiana information here.

Workers Comp insurance premiums are the jurisdiction of:

Department of Insurance 
1702 N. 3rd St. 
Baton Rouge, LA 70802 



An NCCI state. The law requires almost all public and private employers to have workers’ compensation coverage. The law defines employers as “private employers, the State, counties, cities, towns, water districts, other quasi-public corporations, municipal school committees, and design professionals.” 

Bureau of Insurance 
Consumer Services Division 
34 State House Station 
Augusta, ME 04333-0034 

Workers Compensation claims are the jurisdiction of:
Workers Compensation Board



An NCCI state. Workers Compensation insurance premiums are the jurisdiction of:

Insurance Administration 
200  St. Paul Place, Suite 2700
Baltimore, MD 21202



Massachusetts maintains its own independent rating bureau — the Workers Compensation Rating and Inspection Bureau. So instead of following NCCI manual rules, Workers Comp insurance in Massachusetts computes premium charges and follows classification rules created by WCRIB. This also means that experience modification factors for Massachusetts employers are calculated by WCIRB and not NCCI. Although if a company operates in both Massachusetts and in states that use NCCI, then a combined experience mod will be calculated by NCCI.

In Massachusetts, All employers are required to carry workers’ compensation insurance covering their employees, including themselves if they are an employee of their company. This requirement applies regardless of the number of hours worked in any given week, except that domestic service employees must work a minimum of 16 hours per week in order to require coverage. Employers are required to notify their employees of the name of the all employers with workers who are not exempt are required to obtain valid Workers Comp coverage.

Workers Comp insurance is regulated by:

Division of Insurance 
Consumer Affairs 
One South Station, 5th Floor 
Boston, MA 02110-2208 



Nearly all employers in Michigan are subject to the Workers’ Disability Compensation Act. The law requires that every covered employer must provide some way of assuring that benefits are paid to its workers if they become injured while on the job. Most employers do this by purchasing an insurance policy from a private insurance company.

 In Michigan, valid WC coverage is required of:

(a) all private employers regularly employing I or more employees 35 hours or more per week for 13 weeks or longer during the preceding 52 weeks. 

(b) All private employers regularly employing 3 or more employees at one time. (This includes part-time employees.) 

(c) Agricultural employers if they employ 3 or more employees 35 hours or more per week for 13 or more consecutive weeks. 

(d) Householders employing domestic servants if they employ anyone 35 hours or more per week for 13 weeks or longer during the preceding 52 weeks. 

(e) All public employers. 

Michigan is not an NCCI state, but maintains its own separate independent rating organization — the Compensation Advisory Organization of Michigan, or CAOM — with an important caveat: in Michigan, there is no regulation of classification codes for voluntary (non-assigned risk) Workers Comp. 

CAOM also administers the Michigan Workers Compensation Placement Authority, which is that state’s Assigned Risk plan. Michigan also calculates its own separate experience modifier for Michigan exposure, and this mod is not combinable with other states in an interstate mod. So an employer operating in both Michigan and in NCCI states will have two separate experience modifiers–one just for Michigan, and another for NCCI states.

P.O. Box 3337 
Livonia, MI 48151-3337 

Information about treatment of independent contractors and subcontractors under Michigan Workers Comp can be found here.

Insurance is regulated by 
Office of Financial and Insurance Services (OFIS) 
P.O. Box 30220 
Lansing, MI 48909-7220 

Workers Comp claims are the jurisdiction of:
The Workers Compensation Agency



Minnesota operates its own rating bureau, the Minnesota Workers Compensation Insurance Association (tel 612-897-1737) and like Michigan, does not regulate what classification codes insurers use on voluntary market WC business. Unlike Michigan, however, loss and payroll data is reported to NCCI for inclusion in interstate mods. 

Workers Compensation is overseen by:
The Minnesota Dept. of Labor & Industry

Minnesota generally requires all employers who have workers to get valid coverage (with a few exceptions.

Other insurance is regulated by:

Dept. of Commerce, Insurance Division 
857 Place East Suite 500 
St. Paul, MN 55101 



Another NCCI state. In Mississippi, all employers with five (5) employees regularly employed are required to provide workers’ compensation insurance coverage. 

If the employer has less than five (5) employees, workers’ compensation coverage is not mandatory but may be provided voluntarily by the employer. Domestic and farm labor, and employees of non-profit fraternal, charitable, religious or cultural organizations are not covered under the Law unless coverage is provided voluntarily by the employer. 

The Workers’ Compensation Law likewise does not apply to federal employees or certain transportation and maritime employments covered by federal compensation laws. Finally, independent contractors are ordinarily excluded from coverage although special protection is given to employees of subcontractors. 

Workers Comp Insurance premium is the jurisdiction of:

Insurance Department 
1001 Woolfolk State Office Building
501 North West Street
Jackson, MS 39201 

While Workers Comp claims are the jurisdiction of :
The Mississippi Workers Compensation Commission



Another NCCI state. Missouri requires workers’ compensation insurance if you have five or more employees, unless you are in the construction industry, then you must carry workers’ compensation insurance if you have one or more employees. 

Workers Comp insurance premiums are the jurisdiction of:
Division of Insurance, Dept. of Consumer Affairs 
301 W. High Street 
Jefferson City, MO 65102 

Workers Comp claims are the jurisdiction of:
Division of Workers Compensation, Dept. of Labor



An NCCI state.

State Auditor’s Office, Division of Insurance 
840 Helena Ave. 
Helena, MT 59601-4009 



Nebraska is another NCCI state,.

Department of Insurance 
941 O Street, Suite 400 
Lincoln, NE 68508 



An NCCI state.

Insurance is regulated by:

Division of Insurance
1818 E. College Parkway, Suite 103
Carson City, NV 89706


New Hampshire

An NCCI state. 

Insurance Department 
21 South Fruit St. Suite 14 
Concord, NH 03301-7717


New Jersey

New Jersey also maintains its own non-NCCI rating bureau, the New Jersey Compensation Rating & Inspection Bureau. This bureau has responsibility for creating manuals and rules of classifications and experience rating for New Jersey Workers Compensation insurance. The Department of Insurance doesn’t really exercise much oversight of Workers Compensation insurance, unlike most states.

New Jersey Compensation Rating & Inspection Bureau\
60 Park Place
Newark, NJ 07102


New Mexico

An NCCI state. 

Insurance Division 
New Mexico Public Regulation Commission 
PERA Building 
P.O. Box 1269 
Santa Fe, NM 87504-1269 
tel 505-827-4601 
fax 505-827-4734


New York

New York uses its own non-NCCI, independent rating bureau for Workers’ Compensation insurance, the New York Compensation Insurance Rating Board, which develops its own manuals and rules regarding classification and experience modifiers. Because of this, employers in New York actually lack certain important regulatory protections concerning Workers’ Compensation insurance premiums that employers in many other states enjoy under NCCI manual rules or specific state regulations. 

One unique aspect of New York Workers Compensation is that employers are required to obtain a separate coverage for workers’ disability from non-work-related exposures, to protect workers from loss of income due to such a disability, just as the regular Workers Compensation coverage protects those workers from work-related disability.

Insurance is regulated by 
New York State Insurance Dept. 
One State Street Plaza
New York, NY 10004
800-342-3736  or 212-480-6400


North Carolina

Department of Insurance 
1201 Mail Service Center 
Raleigh, NC 27699-1201 


North Dakota

North Dakota maintains a monopoly state fund for Workers’ Comp, meaning that private insurance is not allowed. This fund is administered by 

North Dakota Workers Compensation Bureau 
500 E. Front Ave. 
Bismarck, ND 58504-5685 

Insurance (but not Workers’ Comp) is regulated by 

Insurance Department 
600 E. Boulevard, Dept. 401 |
Bismarck, ND 58505-0320 



Ohio does not permit private insurance for Workers’ Compensation. Instead, it maintains a monopolistic state fund. However, this state fund has just recently shifted to using the NCCI classification system for workplace exposures. The Ohio Workers’ Comp system is administered by 

Bureau of Workers Compensation 
30 W. Spring Street 
Columbus, OH 43215 



An NCCI state. Insurance is regulated by 

Insurance Department 
P.O. Box 53408 
Oklahoma City, OK 73152-3408 



An NCCI state. 

Dept. of Consumer & Business Services 
Insurance Division 
350 Winter Street NE, Room 440 
Salem, OR 97301-3883 



Insurance Department 
1326 Strawberry Square
Harrisburg, PA 17120 

More details about Pennsylvania and their Workers Compensation system can be found here.

Rhode Island

An NCCI state.  All employers with one or more workers in the state must obtain Workers Compensation coverage.  Independent contractors are not eligible to claim benefits from those who retain their services.  They must file a form with the Department of Business Regulation certify their independent status.

Workers Compensation insurance rates and premiums are regulated by:

Rhode Island Department of Business Regulation
1511 Pontiac Avenue 
Cranston, RI 02920   
Phone:     401-462-9500


South Carolina

An NCCI state. 

Department of Insurance 
P.O. Box 100105
Columbia, SC 29202

South Dakota

An NCCI state. 

Division of Insurance 
Department of Commerce 
445 E. Capitol 
Pierre, SD 57501 


An NCCI state. 

Department of Insurance 
500 James Robertson Parkway 
Nashville, TN 37243 


An NCCI state. Texas does not require workers compensation insurance.

Department of Insurance 
333 Guadalupe 
Austin, TX 78701 



An NCCI State. 

Utah Insurance Department 
State Office Building, Room 3110 
Salt Lake City, UT 88114-6901


An NCCI state. 

Department of Banking & Insurance 
89 Main Street, Drawer 20 
Montpelier, VT 05620-3101 


An NCCI state. 

Bureau of Insurance 
Property and Casualty 
P.O. Box 1157 
Richmond, VA 23218 



Washington maintains a monopoly state fund for WC, not allowing private insurance for this exposure.

Phone: 809-692-9390.

Other insurance is regulated by:

Office of Insurance Commissioner 
Attn: Consumer Advocacy 
P.O. Box 40256 
Olympia, WA 98504-0256 


West Virginia

Insurance Commissioner 
State of West Virginia 
P.O. Box 50540 
Charleston, WV 25305 



Wisconsin maintains its own non-NCCI rating bureau for determining classifications, premium computation, and experience rating. In state experience modifiers are calculated by this independent bureau, but data is also provided to NCCI for interstate mods. 

Insurance is regulated by: 

Office of Commissioner of Insurance 
P.O. Box 7873 
Madison, WI 53707-7873 



Wyoming maintains a monopoly state fund for Workers Compensation and does not allow private insurance of this exposure. Workers’ Compensation is administered by 

Wyoming Workers Safety and Compensation Division 
1510 E. Persing Blvd. 
Cheyenne, WY 82002 


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