Connecticut Workers’ Compensation Insurance

All Connecticut businesses, including corporations, LLCs, partnerships, firms or any other type of business with one or more employees, must have workers’ compensation insurance.

Both part-time and full-time workers must be covered by the policy. Employers must also carry workers’ comp insurance for any contractors or subcontractors they hire.¹

These regulations are overseen by the Connecticut Workers’ Compensation Commission, which assists in ensuring that any employees injured at work receive prompt payment for their medical expenses and lost wages.

If you’re an employer in Connecticut, workers’ compensation protects your business financially if one of your employees is hurt on the job. It’s also beneficial when working with clients since some may require proof of coverage before signing a contract to work with you.

Who is exempt from Workers’ Compensation insurance in Connecticut?

One key exception in CT workers’ compensation law applies to household employees. Employers are only required to have workers’ comp coverage for a household or live-in employee if they work 26 or more hours a week.²

Workers’ Compensation owner’s coverage

Partnerships with one or more employees must comply with the law to cover their workers, but the partners themselves may choose to be excluded from coverage as long as they notify the Connecticut Workers’ Compensation Commission in writing.

Sole proprietors are exempt from the requirements for workman’s comp in CT. Any workers they employ must be covered, but coverage for themselves is optional.

If you’re a partner or sole proprietor in this state, it may be tempting to forgo the expense of workers’ compensation coverage. However, it’s important to consider the financial risks to your business.

For example, if you own a house cleaning business and you fall while on the job, sustaining a back injury which keeps you out of work for several weeks, workers’ compensation insurance could help cover the loss of income during that time as well as the medical expenses you incur.

Self-insurance for Connecticut Workers’ Compensation

Some employers prefer to self-insure their workers’ compensation liabilities instead of purchasing a workers’ compensation insurance policy.

These employers may apply to the Connecticut Workers’ Compensation Commission for permission to self-insure. If their application is approved, the business will receive a certificate of self-insurance from the commission.

How does Workers’ Compensation work in Connecticut?

Beginning on their first day on the job, employees are covered by workers’ compensation. Connecticut workers can generally expect the following to be covered when seeking medical treatment for a work-related injury:

• Medical and surgical aid
• Hospital and nursing services
• Medical rehabilitation services

In order to receive these benefits, workers should seek medical care from network providers.

Additionally, workers must report any work-related injury or illness to their employer immediately. If they suffer a medical emergency that prohibits them from making an immediate report, their supervisor can make a report directly.³

Workers’ Comp income benefits in Connecticut

In addition to medical treatment coverage, workers’ compensation insurance provides coverage for lost earnings and temporary or permanent disability, otherwise known as wage-loss and indemnity benefits. These benefits are categorized as follows:

Temporary total disability

Applies when an employee is out for more than three calendar days.

Permanent total disability

Applies when a work injury results in a total incapacity to work.

Temporary partial disability

Applies when an employee is able to return to work at less than their pre-injury wages.

Permanent partial disability

Applies when an employee sustains permanent loss of a body part or function.

Discretionary wage differential

May apply after permanent partial disability benefits have ended if the employee continues to earn less due to their disability.

Disfigurement and scarring

May apply if the employee sustains permanent and significant scars in a location that affects employability (such as head, face or neck).

If an employee dies due to work-related injury or illness, the surviving spouse or eligible dependent may receive benefits based on the employee’s average weekly wage. In some cases, burial benefits may also be included.⁴

Employer responsibilities for Workers’ Compensation insurance

Employers who are required to have workers’ comp insurance must post a notice in the workplace that informs employees of the availability of compensation.⁵ The notice must be posted in a conspicuous location and feature the following information:

• The name, location and contact information for the insurance company
• The location and contact information for the nearest Connecticut Workers’ Compensation Commission office

Employers are required to report all claims to the Connecticut Workers’ Compensation Commission office in a timely manner.

Connecticut Workers’ Compensation insurance reciprocity

Employers must use an in-state provider to obtain insurance for workers’ compensation. CT law does not permit reciprocity for insurance policies purchased in other states.

Are there penalties for not having Workers’ Comp coverage?

Any Connecticut business which fails to obtain the required workers’ compensation insurance is subject to penalty fees of $100 per day. Willful failure to comply may even lead to a class D felony. Additional penalties may be imposed for undue delay in compensation.⁶

What are the rates for Workers’ Compensation in Connecticut?

Insurance companies in Connecticut consider a number of factors when determining the premiums for a workers’ compensation policy. These factors may include:

• Physical risks associated with the job
• The number of employees a business has
• The location of the business
• Previous insurance claims

How NEXT Insurance helps Connecticut businesses

At NEXT Insurance, we offer affordable workers’ compensation insurance for small businesses and self-employed workers.

It’s easy to get started. You can get a quote, review coverage options, purchase insurance, and download a certificate of insurance online in just 10 minutes.

Start an instant quote online today.

If you have any questions along the way, just give our U.S.-based team of licensed insurance advisors a call.

¹ Workers’ Compensation Act Sec. 31-275: Definitions

² Employment Law for Household and Live-In Help

³ Workers’ Compensation Rights, Responsibilities and Claims

⁴ Various Workers’ Compensation Questions

⁵ Communicating Claim Reporting Responsibilities

⁶ Workers’ Compensation Act Sec. 31-288: Additional Liability