Connecticut requires businesses to carry workers’ compensation if they have one employee or more, with the exception of part-time domestic employees.
Connecticut businesses with employees are required to carry workers’ compensation insurance. The exception is that you’re not required to cover a household employee who works fewer than 26 hours per week. All other employees, whether they’re part-time, full-time, or seasonal, must be covered under an employer’s workers’ compensation insurance.
If you’re a business owner, member of an LLC, corporate officer, partner in a partnership, or sole proprietor, you’re not required to have workers’ compensation coverage.
Estimated employer costs for workers’ compensation in Connecticut are $1.23 per $100 in covered payroll, according to the National Academy of Social Insurance [PDF]. Several factors determine the average price in a particular state, including the number of high-risk jobs performed, insurance payouts per year, cost of living, and the cost of doing business.
Costs are based on the level of risk associated with different positions at your business. Some employers will have a variety of workers’ compensation class codes, depending on the work duties performed by their employees. Your workers’ compensation insurance company will determine your cost based on how many employees perform different jobs at your company and their exposure to risk.
The Connecticut Workers’ Compensation Act issues a variety of penalties for failure to carry the correct workers’ compensation insurance for your business.
If the State of Connecticut Workers’ Compensation Commission learns that you don’t have the correct coverage, it will issue a stop-work order so that your employees are not permitted to work until your workers’ compensation insurance is paid. The commission also imposes a $300 fine per worker per day if there isn’t proper coverage.
Fines and penalties can add up to thousands of dollars for delays or failure to comply.
If an employee dies as a result of a work-related injury or illness, death benefits can be awarded to surviving dependents. Workers’ compensation pays $4,000 in burial expenses for the deceased worker.
A surviving spouse can receive death benefits until he or she remarries. The spouse receives the benefit on his or her own behalf and on behalf of the surviving minor dependent children.
If the children don’t live with the surviving spouse or aren’t that spouse’s children, the death benefit is divided equally among the dependents. A minor child’s share of the benefit is paid to a surviving parent or guardian.
If there’s no surviving spouse, the children divide the benefits equally. If there’s no spouse or children, benefits can be received by other family members who were financially dependent on the deceased worker.
A workers’ compensation settlement is an agreement between the parties that will resolve your workers’ compensation claim. This benefits both the employee and the employer.
A workers’ compensation claim can cover an injury from a single accident or injuries that take place over long periods of time like repetitive motion disorders, job-related hearing loss, or occupational diseases such as mesothelioma.
Connecticut law is very clear that a workers’ compensation settlement is full and final for closing a claim. Once the insurer and the employee agree on the terms of a settlement, the employee may not bring any claim or lawsuit against their employer in the future for that injury.
A Connecticut workers’ compensation claim must be filed within one year after an injury. If it’s an occupational disease, the claim must be made within three years of the first manifestation of symptoms.
Start a free online application today to compare workers’ compensation insurance quotes for your small business from leading U.S. carriers. Insureon’s licensed agents specialize in insurance for numerous Connecticut businesses.