Connecticut Workers Compensation Insurance

Connecticut Workers Compensation Insurance Rules

Connecticut Workers Compensation

1. Who needs Workers' Compensation coverage?

All businesses with one(1) or more employees are required by law to have workers compensation insurance. Except those able to self-insure.

2. In Connecticut is there any exemptions from carrying workers compensation insurance?

Yes, household employees who work 26 hours or less per week. Sole proprietors. multiple member LLC's, corporate officers and partnerships may elect not to carry workers compensation insurance for themselves. However, they must always provide coverage for their employees.

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

This depends on whether or not you as a contractor are operating independently or if you employ others. Also, if you are actually completing work as an independent contractor or as an employee. To determine your actual status, you should consult your workers compensation insurance carrier.

Some of the major factors that are generally considered are:

1. The extent to which the worker has unreimbursed visit expenses. Independent contractors are more likely to have unreimbursed expenses than employees. Employers should not routinely approve reimbursement requests for business-related expenses, because this could be used as evidence of employee status.

2. The extent of the workers' investment. An independent contractor often has a significant investment in the facilities he or she uses in performing services for someone else. One of the most significant investments is office or work space. employers should not provide tools, equipment, or supplies to individuals who are hired as independent contractors.

3. The extent to which the worker makes services available to the relevant market. If the worker does the same work for other companies, it's a key indicator of independent contractor status.

4. An employee is generally paid by the hour, week, or month. Independent contractors are usually paid by the job.

5. An independent contractor usually makes a profit or loss on the job. Employees receive paychecks whether the company they work for makes money or not.

6. Does the employer provide employee-type benefits such as insurance, pension plans, vacations, or sick days? Independent contractors do not usually provide this type of benefit.

7. Workers who are hired on a permanent basis are usually considered employees. If a worker is hired with the expectation that the relationship will continue indefinitely, this shows generally an employer/employee relationship.

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

Connecticut Workers Compensation

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