Do You Need Workers’ Comp Insurance for Your Child in Georgia?

It’s common for business owners to employ their children in Georgia. If your child works for you, they most likely need to be covered by your company’s Workers’ Compensation insurance policy.

If you employ your child in Georgia, you will likely need to get Workers’ Compensation insurance. Coverage is required for all companies with more than two employees, even if those employees are an owner’s children. In rare circumstances, an employer’s child may be able to file for an exemption from Workers’ Compensation, depending on their position in a company. Suppose you do not have Workers’ Compensation, and your child is hurt on the job. In that case, your company may be responsible for covering their damages and might face further consequences from the State Board of Workers’ Compensation in Georgia.

Reach out to our small business workers’ compensation insurance brokers in Georgia by calling NPN Brokers now at (561) 990-3022 and learn what we can do for you.

Does Workers’ Comp Insurance Have to Cover Your Child in Georgia?

Children of employers don’t get special treatment when it comes to whether or not they must be covered by Workers’ Compensation in Georgia. If your child works for you and your company is mandated to have coverage, they must be included in your company’s payroll information.

All companies with three or more regular, part-time, or seasonal employees must get Workers’ Compensation coverage in Georgia. This applies to employers whose children work for them, even if they only work part-time jobs. If you have fewer than three employees, including your child, you will not be required to get Workers’ Compensation in Georgia.

Workers’ Compensation insurance must cover all necessary employees, as well an employer’s child. Your company’s policy will provide benefits to your child if they are hurt at work, just as it would to any worker injured on the job in Georgia. While hiring your child can help you save in other areas and allow you to surround yourself with employees that you trust, it won’t impact your Workers’ Compensation requirements in Georgia.

What if Your Child is Injured and Not Covered by Workers’ Comp Insurance in Georgia?

If your child is injured while working for you in Georgia, they may need to file a claim for Workers’ Compensation benefits. If you don’t have coverage for your child, there might be difficulties ahead for your company.

Workers’ Compensation exists in Georgia to protect both employers and their employees. Injured workers can file a claim for benefits, and employers are protected from litigation. When employers don’t have Workers’ Compensation, even for their own children, they can be responsible for covering the cost of an employee’s injuries.

In Georgia, companies without Workers’ Compensation are required to provide benefits equitable to Workers’ Compensation benefits to injured employees. This means providing wage-loss benefits and compensation for all necessary medical expenses related to a worker’s injuries.

Even if your own child is injured on the job in Georgia, they can file a claim with the State Board of Workers’ Compensation requiring your company to pay out of pocket for benefits that would otherwise have been covered by a Workers’ Compensation policy. In such circumstance, the Board of Workers’ Compensation might increase benefits to employees by 10%. Being without Workers’ Compensation in Georgia can put you and any child under your employment in a difficult situation.

Are There Workers’ Comp Insurance Exemptions for Children of Employers in Georgia?

There are no specific Workers’ Compensation exemptions available to children of employers in Georgia. However, if your child is a member of your LLC or an officer of your corporation, they may be able to file for an exemption from coverage in Georgia.

Georgia allows up to five corporate officers and LLC members from the same company to exempt themselves from Workers’ Compensation. This can positively affect premiums, as fewer covered employees can lower insurance costs for companies in Georgia.

If your child is an LLC member or corporate officer of your company, they can exempt themselves. Doing so will make them ineligible to recover Workers’ Compensation benefits if they are hurt on the job. For your child to file for an exemption from coverage, they must submit Form WC-10 to your company’s insurance carrier or the Georgia State Board of Workers’ Compensation. If your child is not an LLC member or corporate officer in your company, they cannot file for a Workers’ Compensation exemption in Georgia.

Consequences of Not Getting Workers’ Comp Insurance for Your Child in Georgia

You can’t use the fact that your child or children work for you to excuse possible non-compliance with Workers’ Compensation requirements in Georgia. If the State Board of Workers’ Compensation finds out about non-compliance, it might impose fines against your company.

For various acts of non-compliance with Workers’ Compensation laws, employers in Georgia might face a penalty of up to $1,000. For specific acts of non-compliance, such as failure to have insurance, employers might be fined $5,000. There is also the possibility of up to a year imprisonment and a fine of up to $10,000 for consistent or willful non-compliance with Workers’ Compensation requirements in Georgia.

These fines and consequences apply to all companies required to get Workers’ Compensation that fail to. This includes employers that hire their children. To avoid these penalties, our Georgia Workers’ Compensation insurance brokers can match you with a policy that provides comprehensive coverage for all necessary employees, including any children that work for your company. Once you get a policy, you can send proof of insurance to the Georgia State Board of Workers’ Compensation so that your company does not incur financial penalties of any kind.

Get Workers’ Comp Insurance for Your Child in Georgia Today

Call our workers’ compensation insurance brokers for general contractors in Georgia at (561) 990-3022 to get a quote from NPN Brokers.