Louisiana Workers’ Compensation Guidelines

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

According to Louisiana workers’ compensation guidelines, if you own a business in Louisiana and have employees, you must carry insurance for all of them. This applies to all workers – full-time, part-time, and even seasonal employees.

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No exceptions for part-time or seasonal workers

Subcontractor's that don't have insurance must be covered by the company that hired them.

Is workers’ compensation insurance required in Louisiana?

Under the Louisiana workers’ compensation guidelines, all employees must be covered. There are no exceptions for part-time or seasonal workers. Even minors must be covered by workers’ compensation insurance

What are the Louisiana workers’ compensation guidelines for self-employed professionals?

Self-employed professionals, independent contractors, and 1099 workers do not need to purchase workers’ compensation insurance in most cases. 

However, if they will be working with an employer as part of that employer’s organization, they must either purchase their own policy or be covered by the employer’s insurance. Louisiana has an online test that allows employers to determine if someone should be covered by their policy or not.

Who is exempt under Louisiana worker’s compensation guidelines?

Louisiana has very strict guidelines when it comes to workers’ compensation. However, there are a handful of exceptions to this rule, including public officials, federal employees, railroad employees, real estate agents/brokers, and nonprofit volunteers.

  • Sole proprietors with no employees
  • Independent contractors with no employees
  • Business partners with no employees
  • Corporate officers are included in coverage by default but can elect to be exempted.

How much is workers’ comp coverage in Louisiana?

The average workers’ comp rate in Tennessee is $4.42 per $100 of payroll.

Your Louisiana 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 Louisiana’s workers’ comp rates here.

workers comp policy cost

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

While protecting your employees and business is important, so is saving money. Thankfully, small business owners in Louisiana have several options to help them reduce the cost of their workers’ compensation policies. 

One of the best options is to ensure that your employees are classified correctly. There’s a major difference between different roles when it comes to risk (and, thus, cost). 

For example, a salesperson responsible for calling and emailing potential leads is at a much lower risk than a salesperson who travels to meet with leads in person.

Another option is to institute a workplace safety training program and create a safety team or council responsible for ensuring that all employees are trained and understand OSHA standards. 

You can also create a return-to-work program to help injured employees return from injuries faster, create a drug and alcohol-free workplace program, and use the dividends from your annual audit to reduce costs.

How does workers’ comp work in LA?

Obtaining and using workers’ comp in Louisiana is much the same as in any other state. You’ll first need to purchase a policy. The cost will be based on an estimate of your annual payroll and worker classifications.

Once purchased, you have a year of coverage for your business and employees. When the term is over, the insurance company will audit the policy to make sure the estimated payroll was accurate. If it was too high, you’ll receive a refund. If it was too low, you’ll pay the difference.

What does workers’ comp cover in Louisiana?

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

workers comp covers medical bills

Medical bills

workers comp covers lost wages

Lost Wages

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 do business owners in Louisiana get workers’ comp insurance?

Under Louisiana workers’ compensation guidelines, employers have three options for purchasing insurance. 

First, you can buy a policy through an a insurance agent. This is the most common path. You can get a quote in just seconds with Kickstand Insurance.

Second, high-risk businesses that cannot purchase from an insurance company can buy a policy through the state fund

For large firms with plenty of capital, self-insurance may be an option. Louisiana has strict requirements and employers must file several forms. 

What are the ramifications of not carrying insurance under Louisiana workers’ compensation guidelines?

Again, Louisiana’s workers’ compensation requirements are very strict. The following penalties may apply depending on the situation:

  • $250 per employee for the first violation
  • $500 per employee for each subsequent violation
  • Up to $10,000 in fines
  • Criminal charges
  • Stop business order
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What are the workers’ comp death benefits in LA?

Under Louisiana workers’ compensation guidelines, an employee’s surviving spouse and dependents may be eligible for death benefits. These include:

  • Up to 32.5% of the employee’s weekly earnings for a spouse alone
  • Up to 46.25% of earnings for a spouse and a single child
  • Up to 65% for a spouse and two or more children
  • The same splits occur for children if there is no surviving spouse.
  • Up to 32.5% for dependent parents if no surviving spouse/children
  • Up to 32.5% for dependent siblings if no spouse/children
  • Adult children could see $75,000 to split if there are no dependents.
  • Up to $8,500 for funeral expenses

How do workers’ comp settlements work in Louisiana?

The Louisiana workers’ compensation guidelines are structured to encourage ongoing payments rather than lump sum payments. 

However, some workers’ compensation settlements can result in a lump sum. These will include ongoing medical coverage and disability benefits, but the employee waives the right to make future claims on the accident/injury. 

Commutations are also possible if the employee is already receiving workers’ comp benefits at a discount of 8% per year.

What is Louisiana’s statute of limitations on workers’ comp?

Employees have a single year to file a workers’ comp claim from the date of their injury or becoming aware/diagnosed with a disability. The employer has 10 days to file a report with the state’s Workforce Commission.

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!

Learn more about Workers' Comp in Louisiana

Why use Kickstand to
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Why does it matter?

  • Avoid surprise bills at audit
  • Make sure all your employees are properly covered
  • Protect yourself from lawsuits

What do we check?

  • Business categorized correctly
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