Louisiana Workers’ Compensation

You can save up to 25% in discounts on business insurance.*

What can be covered by Louisiana Workers’ Compensation insurance?

Medical expenses

Medical expenses

Like exams, treatment and rehabilitation.
Lost wages

Lost wages

For employee recovery after a work injury.


To teach injured employees new skills if they can no longer do their jobs.
Permanent injury

Permanent injury

Benefits for employees who can no longer work due to injury.

Is Louisiana Workers’ Compensation insurance required?

Workers’ compensation insurance is required for all Louisiana employers with one or more employees, according to the Louisiana Workforce Commission. This includes full-time, part-time and seasonal workers as well as employees who are minors.

Subcontractors and independent contractors may also be considered employees if they’re performing substantial manual labor or involved in the pursuit of the employer’s business. Employers should inquire with their insurance carrier if they’re not sure whether these types of workers must be covered.

In Louisiana, workers’ compensation insurance entitles workers to certain benefits if they’re injured on the job, including:

  • Medical care
  • Lost wages
  • Vocational rehabilitation
  • Death benefits

How does Workers’ Comp work in Louisiana?

In Louisiana, workers’ comp covers physical injuries as well as occupational diseases. Certain mental injuries which result from a physical injury or from sudden, extreme stress related to their employment are also covered.

The following types of benefits may be paid directly to the employee:

  • Medical expenses
  • Retraining
  • Lost wages
  • Temporary and permanent disability benefits
  • Survivor benefits

Workers’ compensation income benefits in Louisiana include:

Temporary total disability: The employee suffers an injury that causes them to be unable to work until they reach a certain level of recovery.

Permanent total disability: The employee’s injury limits their ability to perform any type of work on a permanent basis.

Supplemental earnings benefits: The employee is able to return to work, but is unable to earn at least 90% of their pre-injury wage.

When an employee dies within two years of the last treatment as the result of any job-related accident, their surviving spouse and/or dependents may be entitled to death benefits. A one-time benefit may be paid to each surviving parent if the employee has no surviving dependents. Additionally, workers’ comp will cover reasonable burial expenses up to $8,500.

In addition to getting the required insurance, Louisiana employers must report any injury or death to their insurer within 10 days.

Business owners must also post a notice in a convenient and conspicuous location in their workplace which includes:

  • Reporting instructions for occupational injury or disease.
  • How to file a formal claim.
  • Contact information for the Office of Workers’ Compensation Administration.
  • Contact information for the employer, employer representative and insurance company.

Any employees hired in Louisiana must be covered by a policy from an insurance company authorized to conduct business in Louisiana. If out-of-state employees work within Louisiana, their out-of-state employer can cover them with a policy from their home state — as long as that coverage extends to operations in Louisiana.

Learn more about workers’ compensation coverage.

How much is Louisiana Workers’ Comp?

Workers’ compensation costs vary across industries. Factors that influence price include:

  • The number of employees and the type of work they do
  • Your total payroll
  • Your insurance claims history
  • The locations where you do business

The best way to determine the insurance rate for your business is to get a free instant quote from NEXT.

What if you don’t have Workers’ Compensation in Louisiana?

Employers can be fined up to $250 per employee for first violations and $500 per employee for subsequent violations for failure to carry workers’ comp insurance. Louisiana businesses may also be charged with criminal violations for certain offenses, like willful failure to provide workers’ comp or providing false information to reduce insurance premiums.

If an employer is found to be in violation of laws for workers’ comp in Louisiana, they may be served an injunction which prevents them from doing further business until the matter is resolved.

Who is exempt from Louisiana Workers’ Compensation insurance?

There are a limited number of exceptions to the requirements for workers’ compensation. Louisiana laws do not require coverage for the following employees:

  • Domestic employees
  • Public officials
  • Most volunteer workers
  • Most real estate salespeople
  • Unpaid officers and directors of certain non-profit organizations

Business owners in Louisiana may not be required to carry workers’ compensation insurance for themselves if they fall into one of the following categories:

  • The business is owned by a single individual with no employees or subcontractors and it’s not a corporation.
  • The business is a partnership according to Louisiana law and has no employees or subcontractors.
  • The business is a corporation owned by one or two people, and those individuals own all of the stock, hold all the offices of the corporation and have no employees or subcontractors.

Even if you don’t need to have workers’ comp coverage based on these exemptions, some clients require a business to have it to meet the obligations of a contract.

Employers can apply to the Louisiana Office of Workers’ Compensation Administration if they wish to self-insure, which means that they agree to pay workers’ comp benefits directly to their employees themselves. A self-insurance application has a checklist of items including:

  • Evidence that the business is currently in compliance with workers’ compensation laws.
  • Three years of audited financial statements.
  • Three years of workers’ comp loss runs.
  • $100 application fee.

If the application is approved, the employer will be required to post security in an amount determined by the Office of Workers’ Compensation Administration.

How NEXT helps Louisiana small business owners

NEXT offers an easy way to get a free workers’ compensation insurance quote, purchase coverage and instantly share a certificate of insurance in about 10 minutes.

NEXT strives to resolve every claim quickly. Learn more about our claims process and how our claims advocates will work with you after an employee injury.

Start a free instant quote with NEXT.

Other important business insurance policies in Louisiana

Workers’ compensation insurance provides many important protections, but you’ll need additional coverage to protect from all the risks your small business can face.
Many Louisiana small businesses also consider:
General Liability
General Liability insurance

General liability insurance protects your business from common mistakes or accidents, such as customer injury or damages to someone’s property.

Commercial Auto
Commercial Auto insurance

In Louisiana, all business-owned vehicles must be covered by commercial auto insurance. If you drive or use your personal vehicle for work, commercial auto insurance helps protect your business from accidents.

Commercial Property
Commercial Property insurance

Commercial property insurance can provide financial help if your business structures, goods, gear or inventory are damaged or destroyed by a covered event.

Errors & Omissions
Professional Liability insurance

Professional liability insurance, also called errors & omissions insurance, provides financial protection against claims of professional mistakes and negligence.

More resources for small business owners

Get customized insurance in Louisiana

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* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.