Most employers are legally required to have workers’ compensation insurance. But if you find out your employer doesn't have coverage, you may still be able to get compensation for your work-related injury or illness—either directly from your employer or through your state workers’ comp agency.
Read on for details.
Are Employers Are Required to Have Workers’ Comp Insurance?
Almost all states in the U.S. require employers to have workers’ comp coverage, typically either by buying insurance or by showing they have the financial resources to cover any workers’ comp claims (known as self-insurance).
Many states apply these insurance requirements to all employers. In other states, employers need to get insurance only when they have a certain number of employees (typically at least two to five).
Texas is the only state that allows private employers to choose whether they want to buy insurance and participate in the state’s workers’ comp system.
How Can I Find Out If My Employer Has Workers’ Comp Insurance?
When you report your injury, your supervisor should give you information about how to file a workers’ comp claim. Typically, your employer must immediately notify its insurance company of your injury and give you any paperwork you need to fill out.
If your employer isn’t being forthright about its insurance coverage, your state workers’ comp agency may have an online tool for you to look up this information. (Read more about finding out if your employer has workers' comp coverage.)
What Can I Do If My Employer Doesn’t Have Workers’ Comp Insurance?
If your employer doesn't have workers' comp coverage, you generally have one of two options:
- a personal injury lawsuit against your employer, or
- a workers’ comp claim with your state's uninsured employer's fund.
The general rule is that injured employees aren't allowed to sue their employers in court for work injuries, but there’s usually an exception when employers don't have workers’ comp insurance. At the same time, many states (including California and New Jersey) have special funds that provide traditional workers’ comp benefits to injured employees who work for uninsured employers.
If both options are available in your state, you'll typically have to choose one or the other. Before you make a decision, you should understand the differences between personal injury lawsuits and workers' comp claims, including the advantages and risks of each course of action.
Get Help From a Workers' Comp Lawyer
Even if you have the option of filing a claim with an uninsured employers fund, you may find that the process is more complicated than a regular workers’ comp claim. It’s probably a good idea to speak with a lawyer when you learn that your employer doesn’t have insurance.
An experienced workers’ comp attorney can explain the rules in your state and help you decide whether it would be better to go ahead with a claim or file a lawsuit.