Who is Exempt from Workers’ Compensation Insurance in Georgia?

Though Workers’ Compensation insurance is mandatory for most businesses in Georgia, there are some notable exceptions. That doesn’t mean you cannot get Workers’ Compensation coverage, even if you are initially exempt.

Sole proprietors and partners are automatically excluded from Georgia’s Workers’ Compensation system. Up to five LLC members or corporate officers can elect to be exempt from their company’s Workers’ Compensation coverage. To file for an exemption or to revoke a previous exemption, you can submit Form WC-10 to your insurer or the Georgia State Board of Workers’ Compensation. Opting into coverage is typically wise, as a lack of insurance might make you vulnerable to financial liability for your injuries or an employee’s after a workplace accident.

To learn more about how you can get coverage for your company, call the Georgia workers’ compensation insurance brokers for general contractors at NPN Brokers today at (561) 990-3022.

Who is Automatically Exempt from Workers’ Comp in Georgia?

Certain people are automatically exempt from Workers’ Compensation in Georgia. That said, some of those people, like sole proprietors and partners, can opt into coverage in certain circumstances, according to O.C.G.A. § 34-9-2.2.

Sole Proprietors

Sole proprietors are automatically exempt from Georgia’s Workers’ Compensation system. This means that sole proprietors do not need to get coverage for themselves under Georgia law. However, sole proprietorships that employ three or more workers will need Workers’ Compensation for those employees. That doesn’t mean sole proprietors can’t get coverage from our Georgia Workers’ Compensation insurance brokers. If you wish to elect into coverage, you can file Form WC-10 with the Georgia State Board of Workers’ Compensation.

Independent Contractors

Independent contractors are excluded from Workers’ Compensation in Georgia. This means they will not be covered under a client’s policy, even if they are contracted for work by a larger company. When hiring an independent contractor, it is important to understand that while they won’t be factored into your company’s payroll numbers for Workers’ Compensation, they may be able to seek compensation from your company if hurt while performing contracted work for you.

Partners

People in partnerships are exempt from Workers’ Compensation in Georgia as well. Partners are not automatically included in a company’s Workers’ Compensation policy, even if they employ other workers. However, partners can file Form WC-10 if they want to be covered by their company’s Workers’ Compensation insurance in Georgia.

Farm Laborers

Though the agricultural industry poses substantial risks of workplace accidents, farm laborers are typically exempt from needing Workers’ Compensation insurance in Georgia. Like sole proprietors and partners, farming companies can choose to opt into the system and provide Workers’ Compensation to their employees, according to O.C.G.A. § 34-9-2.3.

Who Can Elect to Be Exempt from Workers’ Comp in Georgia?

Only certain people can reject Workers’ Compensation insurance in Georgia, despite state requirements for coverage. Those people are LLC members and corporate officers.

Georgia allows up to five LLC members or corporate officers within a company to exclude themselves from their company’s Workers’ Compensation policy, according to O.C.G.A. § 34-9-2.1. The State Board of Workers’ Compensation warns that LLC members and corporate officers can’t do this with the intention of eliminating their company’s Workers’ Compensation liability.

No other person can elect to be exempt from coverage in Georgia, keeping in mind that there are some automatic exemptions.

To exempt yourself from coverage, file Form WC-10 with your insurer or the Georgia State Board of Workers’ Compensation insurance. Lowering the number of covered employees by claiming exemptions can also reduce your company’s Workers’ Compensation insurance premiums.

What Happens if You Are Exempt from Workers’ Compensation and Injured in Georgia?

Certain risks associated with being exempt from Workers’ Compensation insurance, whether you are exempt automatically or by your own choosing. The primary risk in these situations is the liability for a worker’s injuries.

While some people are automatically exempt from Workers’ Compensation in Georgia, it is often wise for them to opt into the system. In doing so, you can get comprehensive Workers’ Compensation coverage that protects you and your business from financial liability in case of a workplace accident. When people remain exempt, they run the risk of being financially responsible for their own medical expenses following an injury.

The same can be said for LLC members and corporate officers that choose to exempt themselves from their company’s Workers’ Compensation insurance policy. Getting coverage, whether you are required to or not, can protect your company from considerable financial troubles if a workplace accident occurs in Georgia.

What if You Don’t Have Workers’ Compensation and Are Not Exempt in Georgia?

If you or your company is not exempt from Workers’ Compensation insurance in Georgia and fails to get coverage, it may face serious financial penalties. In extreme cases, employers might face criminal charges as well.

Companies that are not exempt from Workers’ Compensation insurance, which is any company with three or more employees, must get coverage in Georgia. Failure to do so is considered a violation of Workers’ Compensation law and will likely be investigated by the Enforcement Division within the Georgia State Board of Workers’ Compensation.

These violations often come with consequences. For example, the maximum financial penalty for non-compliance is $5,000 per violation, according to O.C.G.A. § 34-9-18(c). Multiple Workers’ Compensation violations might result in up to 12 months in prison for employers in Georgia.

Companies that aren’t exempt from Workers’ Compensation in Georgia and fail to maintain it might also face action from injured workers. The Georgia Workers’ Compensation system exists to provide benefits to employees and protect employers from liability. Without coverage, there is no mechanism in place to safeguard your company from civil action by an injured employee in Georgia.

Find Workers’ Compensation Coverage in Georgia Today

To get a policy quote for your business, call the Georgia workers’ compensation insurance brokers for construction subcontractors at NPN Brokers today at (561) 990-3022.