Do LLCs Need Workers Comp Insurance?

  • Published Feb 03, 2022

If you have an LLC, you’re probably used to handling a variety of different things at once. More than that, you’re probably great at keeping everything in line and running smoothly. But there are complicated aspects of having an LLC that your tenacity and dedication can’t simplify, like business insurance. You might be looking at your business insurance options and wondering, does my LLC need workers’ compensation insurance? 

The answer depends on a few different things. For example, are you a single- LLC? Is workers’ comp required in your state? Do you need to protect yourself and your assets? 

Here, we’ll go over the ins and outs of workers’ comp as it pertains to LLCs, including what an LLC is, what benefits workers’ comp provides to your LLC, and the questions listed above. 

What Is An LLC?

An LLC, or a limited liability corporation, is a business structure allowed by state laws that helps to protect your personal assets by defining business assets from personal assets. By setting up an LLC, either with other people (called s) or on your own (called a single- LLC), if your business is sued all of your personal assets are protected against being used to settle any business liabilities. This means that personal assets such as personal bank accounts, property, vehicles, and other belongings or items of value cannot be seized if your business gets into financial trouble. 

What Is a Workers’ Compensation Insurance Policy?

Workers’ compensation is a form of business insurance that protects businesses against being sued for workplace injuries or illnesses while also providing financial support for victims of on-the-job injuries and illness via coverage for medical care, lost wages, death benefits, and more. With workers’ compensation insurance, your business pays the premium for insurance to avoid having to be held financially responsible for the costs directly related to injuries and illness that employees experience while working.

State laws regarding workers’ compensation vary, however, almost all states require workers’ comp as soon as you hire your first employee, even if they are part-time workers. It’s important to know your state’s laws regarding workers’ compensation and to abide by them, otherwise, you risk facing criminal or financial penalties for violating workers’ comp laws. 

Do LLC s need workers comp?

If you have an LLC, you might be wondering what benefits there are regarding workers’ comp for an LLC owner, particularly if you’re a single- LLC. Firstly, it’s important to check your local state laws regarding whether single- LLCs are exempt from coverage or not in your state. You can do this by contacting your state’s workers’ compensation board. If it is legally required, you’ll need to get coverage no matter what. However, if it isn’t, then you can assess whether or not you want to get coverage to protect yourself. Consider if you can afford to be out of work for an extended amount of time if you’re injured while working. Workers’ compensation insurance protects your business against potentially devastating costs and often the premium costs are more affordable than business owners may think.

How Can Cerity Help?

No matter what kind of work your business does or how large your team is, your LLC could be at risk for injuries or illnesses that occur on the job. Even if your LLC is relatively low-risk or if you’re a single- LLC, there are benefits to getting workers’ compensation coverage. Luckily, Cerity is here to make the process of getting a workers’ comp coverage quote quick and easy. Gone are the days of spending hours on the phone and filling out complex paperwork to get an idea of how much your workers’ comp coverage will cost. With Cerity, we make workers’ comp simpler than ever before. 

We have created a faster, more affordable approach to workers’ compensation so LLC owners like you can get an online quote and insurance coverage quickly and easily. Simply go to our free online quote tool. Tell us a little bit about your business to get an affordable rate, and you can buy a policy online in minutes to cover you for the year ahead.

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The information provided is intended to provide a general overview. This information is not legal advice and should not be relied on as such. Cerity® makes no warranties for the accuracy, adequacy, or completeness of the information provided, and will not be responsible for any actions taken based on the information contained herein. If you have legal questions or need legal advice, please consult an attorney.