Connecticut requires businesses to carry workers’ compensation insurance if they have one employee or more, regardless of whether they’re contract, part-time, full-time, and regardless of the employee’s average weekly wage.
Connecticut businesses with employees are required to provide workers’ compensation benefits. This policy covers the cost of medical care for job-related injuries, and provides death benefits in the event of an employee fatality.
Employers are not required to cover household employees who work 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, sole proprietor, or independent contractor, you’re not required to have workers’ compensation coverage.
Given the high cost of medical bills, you should consider purchasing this policy even when it's not required. Individual health insurance plans typically won't cover work-related injuries.
Estimated employer rates for workers’ compensation in Connecticut are $1.10 per $100 in covered payroll. Your cost is based on a number of factors, including:
The most important factor in determining your workers' comp premium is 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.
Insurance companies assign a level of risk to each class code, and determine workers' comp costs based on the codes assigned to different employees at your business.
To save money on workers' comp, it's important to make sure you classify your employees correctly. Employees with desk jobs or other jobs with a low risk of injury cost less to insure. This also helps you avoid misclassification fines.
In some cases, small business owners can choose to buy pay-as-you-go workers' compensation. This type of workers' comp policy has a low upfront premium, and lets you make payments based on your actual payroll instead of estimated payroll. It's useful for businesses that hire seasonal help or have fluctuating numbers of employees.
Finally, a documented safety program can help lower workers' comp costs. A safer workplace means fewer accidents, which helps keep your premium low.
Workers’ compensation can help cover medical expenses and partial wage replacement for an employee who suffers from a job-related injury or occupational disease. It can provide benefits for:
Workers' comp policies usually include employer's liability insurance, which can help cover legal expenses if an employee blames their employer for an injury. However, the exclusive remedy provision in most workers' comp policies prohibits an employee from suing their employer if they accept workers' comp benefits.
The Connecticut Workers’ Compensation Act includes a variety of penalties for failure to carry the correct workers’ compensation insurance for your business.
If the State of Connecticut Workers’ Compensation Commission (WCC) learns that you don’t have the right coverage, it may issue a stop-work order. That means employees are not permitted to work until workers’ compensation insurance is paid to the insurance carrier. The Workers' Compensation 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. The Connecticut workers' compensation law includes $4,000 in burial expenses for the deceased worker.
A surviving spouse can receive death benefits until they remarry. The spouse receives the benefit on their 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 isn’t a surviving spouse, the children divide the benefits equally. If there isn’t a 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 resolves a workers’ compensation claim between the injured employee and the employer. Both injured workers and the employer can benefit from this, by having claimants and the company avoid time consuming and expensive litigation.
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 reimbursement of medical treatment for that injury.
A Connecticut workers’ compensation claim must be filed within one year after an injury, such as damage to a body part or disfigurement. 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. providers. Insureon’s licensed agents specialize in insurance for many different types of small businesses in Connecticut.