Alabama Workers Compensation Insurance-Workmans Compensation

Who needs Alabama Workers' Compensation coverage?

1. Who needs Workmans' Compensation Insurance coverage?

Any business that has five (5) or more employees is required by law to have workers' compensation coverage. In Alabama the term employee includes all full or part-time employees, officers of a corporation or members of an LLC. You may purchase workers' compensation coverage from an independent insurance agency. The State of Alabama does not sell workers' compensation insurance.

2. In Alabama who can exempt themselves from Workers Compensation Insurance?

Employers who have less than five (5) employees. Also, employers of domestic employees, farm laborers, or casual employees and municipalities having a population of less than 2,000 (according to the most recent federal census) are not required to provide workers' compensation insurance coverage.

3. Does Alabama workers compensation law have specific requirements for subcontractors/contractors and sole proprietors?

Sub-contractors/contractors with less than five (5) employees who work directly for a Residential Builder in the construction of single-family dwellings are exempt for one year. The general contractor can charge the sub-contractor for their workers' compensation insurance premium. However, an employer may never charge an employee for workers' compensation coverage.

Sole Proprietors and Partners are excluded from having to carry workers' compensation insurance, unless they file an election to accept workers' compensation coverage.

Employee Leasing and Staffing Companies

Using a PEO or staffing company to obtain your workers compensation may be a good alternative to purchasing your own workers compensation policy. Leasing companies handle your payroll, w-2 forms, unemployment and workers compensation claims. In many cases the down payment required to obtain a new workers compensation policy is high and many new businesses cannot afford the down payment. Another advantage, based on my experience, is that you will never get audited because you pay as you go for your coverage. We represent numerous leasing and staffing companies who in many cases offer deep discounts on your workers compensation coverage that you will not find from standard workers compensation insurance carriers.

USL&H & The Jones Act

We have excellent workers compensation programs for these specialty risks requiring this endorsement. If you are unsure and want to read either the USL&H or Jones Act I have provided helpful links below for you convenience. I have found them to be the most detailed and good resources on the laws.

If you need a quote that requires this coverage

Click Here for a USL&H Quote

Click here for the complete USL&H Act, courtesy of Cornell University.
Click here for: USL&H & Jones Act Information
Defense Base Act Division of Longshore and Harbor Workers' Compensation

Alabama Workers Compensation Links

News and Legislative Updates
Alabama Workers Compensation Act
Alabama Workers Comp. Forms
Quick Facts and Contact Information