Understanding Workers’ Comp Insurance in CT

An A-Z guide on everything you need to know before you purchase a Connecticut Workers' Comp Insurance Policy

Businesses in Connecticut must carry workers' compensation insurance if they have one or more employees. The type of employee is irrelevant – all workers are covered, including part-time and contract workers. However, there are a few exceptions that business owners and decision-makers must know.

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Required with

1 employee

Self-employed professionals are not required to have a workers’ comp policy.

Who can be exempt?

Household employees who work fewer than 26 hours per week
Sole proprietors
Independent contractors
LLC members
Business owners themselves
Corporate offers
Partners

Is workers’ comp insurance required in Connecticut?

Yes, the state of Connecticut does require most businesses to carry workers’ compensation insurance. That applies to businesses with one or more employees, even if those employees are contract workers or part-time employees.

Are self-employed professionals required to carry workers’ compensation insurance in Connecticut?

No, self-employed professionals working in Connecticut are not required to carry workers’ compensation.

Who is exempt from Connecticut workers’ comp requirements?

Very few Connecticut business owners are exempt from the state’s workers’ comp laws.

However, Connecticut does offer a handful of exemptions, such as: household employees who work fewer than 26 hours per week, sole proprietors, independent contractors, llc members, business owners, corporate officers and partners

How much is workers’ comp coverage in Connecticut?

Your Connecticut workers’ comp rate will depend on the following factors:

The type of business you have
The size of your payroll
Your safety record
Claim history

You can learn more about Connecticut’s workers’ comp rates here.

How can Connecticut small business owners save money on workers' comp?

As a business owner, you want to protect your business and your employees. Workers’ comp insurance allows you to do just that. However, it does come at an additional cost.

Thankfully, there are ways you can limit those costs.

Some of your options include:

Verifying that your employees are classified correctly can make an enormous difference in your premiums
Creating and implementing a workplace safety program that helps reduce accidents
Make sure your employees know, understand, and follow OSHA safety standards at all times
Create a drug and alcohol-free workplace policy
After your annual audit, apply your dividends

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How does workers’ comp work in Connecticut?

While each state handles workers’ comp differently, the overall process is pretty similar.

First, compare your options and choose a workers’ comp policy based on your estimated annual payroll.
Once you pay your premium, your workers’ comp coverage becomes active.
You get a full year of protection for your business and its employees.
At the end of each year, you’ll go through an audit to make sure the payroll estimate was correct. If it was too high, you’ll receive a check. If it was too low, you’ll be billed the difference.

What does workers’ comp cover in Connecticut?

Workers who file a workers' comp claim in Connecticut can receive benefits for the following:

Medical bills

Lost Wages

Death Benefits

Workers' comp coverage also protects employers from legal action. This means that if an employee sues your business because of a workplace injury, the insurance will cover the legal costs of the case.

How to get workers’ comp insurance in Connecticut

Purchasing workers’ comp insurance in Connecticut is usually an easy process. You can choose from two methods.

The most common route is to buy a policy from an independent insurance agency. With Kickstand Insurance, you can easily apply online and get a quote within just a few minutes. This makes it easy to compare your options and choose the best policy.
You can choose to self-insure. Note that this is really only an option for large firms because you will be responsible for all workers’ comp-related costs. You must also apply with the state for approval

What if you don’t carry workers’ comp insurance in CT?

Under the law, most business owners are required to carry workers’ compensation insurance in Connecticut. If you fail to do so, you’ll face stiff penalties.

For construction businesses, you may face a stop-work order if the Workers’ Comp Commission finds that you lack coverage. You’ll also face a $300 fine per worker per day until the situation is rectified.

Note that these can add up to immense penalties; you must have the right coverage from the beginning to avoid them.

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FAQS

What does a workers’ comp policy pay for in CT?

Workers’ compensation covers a wide range of costs, both in terms of medical care and lost wages. These include:

Emergency medical care
Ongoing medical treatment
Prescription medications
Rehabilitation (occupational and physical)
Multiple types of disability
Lost wages
Death benefits

What are workers’ comp death benefits in CT?

In Connecticut, workers’ compensation policies must provide specific benefits if an employee is killed on the job, during work-related responsibilities, or from a work-related disease.

Up to $4,000 in burial expenses
Up to 75% of the employee’s average weekly pay per week
Coverage for any medical bills incurred by the employee before death related to the injury/illness
Payments to the surviving spouse until they remarry
Payments to surviving dependents until they reach majority/complete school

How do workers’ comp settlements work in CT?

Workers’ comp settlements work similarly in all states. In this situation, all three parties (the employee, the employer, and the insurance company) will sit down together to discuss the situation and come to a mutually agreeable solution.

The employee usually accepts a lump sum settlement in exchange for signing that they will not pursue further action regarding the injury or illness.

However, Connecticut also supports what’s called a voluntary agreement. In this situation, the insurance company accepts the claim and agrees that the employee is owed a particular amount in benefits. Those will be paid weekly to the employee and the employee is free to seek further medical treatment if necessary.

What are the statutes of limitations for workers’ comp in CT?

Connecticut requires employees to file a workers’ comp claim within one year of the injury. However, if the claim revolves around an occupational disease, the employee has three years from the date when symptoms first appeared.

How do I get a workers’ comp insurance policy with Kickstand Insurance?

Start by filling out a short online form about your business. We’ll use that info to get you an estimated quote. Then, one of our experienced agents will contact you to review the quote and make sure you are getting the absolutely lowest rate possible for your business. Once the quote is finalized, you’re ready to buy the policy - often with coverage starting that day!

Ready: Fill out an online form. It only takes 5 minutes!
Set: One of our agents will contact you to review the quote.
Go: You can get covered starting today!

Understanding Workers’ Comp Insurance in CT