In many of our blog posts about workers’ compensation, we have mentioned that most, but not all, employers have to carry workers’ compensation insurance in Missouri. In this post, we will delve into who, exactly, has to follow this rule.
Generally, All Employers With Five or More Employees Need Workers’ Compensation Insurance
The general rule in Missouri is that employers must carry workers’ compensation insurance if they have five or more employees. Missouri Statute 287.030 defines “employer” in this way for the state’s workers’ compensation law.
Who is technically an “employee” matters.
Missouri Statute 287.020 states that company executives and officers count towards this number, as do the members of a limited liability company (LLC). Traditional employees count, regardless of whether they are full- or part-time, and even if they are family members of the employer. However, sole proprietors and partners in a partnership do not. Importantly, independent contractors do not count towards the threshold number, either.
Construction Companies With at Least One Employee Need Coverage
Missouri Statute 287.030 makes an exception to this general rule for construction companies. These companies have to carry workers’ compensation insurance if they have one or more employees. The statute defines “construction industry employers” as those who “erect, demolish, alter or repair improvements.”
Lack of Coverage Exposes Employers to Lawsuits
Because the workers’ compensation system is a trade-off, employers that do not carry workers’ compensation insurance are not shielded from personal injury lawsuits for the employer's role in causing a workplace injury. This is the case, regardless of whether the employer was legally obligated to carry insurance. For this reason, many Missouri employers who do not have to be insured choose to carry insurance, anyway. They can do so by either buying an insurance policy or through self-insurance, which requires a showing that they are financially capable for covering the costs of a workplace injury.
Uninsured Employers Create Complications
If you get hurt at work but your employer is uninsured, the resulting case will be completely different. For one thing, it will no longer be a workers’ compensation claim. It will be a personal injury lawsuit, instead. That is not just a difference in name. You will be responsible for presenting evidence that shows that your employer was responsible for your injuries, which is not necessary in a claim for workers’ compensation. However, you will also be able to recover all of the different types of compensation that are available in a personal injury case. This includes compensation for your pain and suffering, which is not available in a workers’ compensation claim.
Unfortunately, practically speaking, the employers who do not carry workers’ compensation insurance – whether they are legally required to have it or not – are often the ones that do not have the financial means to pay for a court judgment against them.
Missouri Workers’ Compensation Lawyers at the Smith Law Office
If you have been hurt in a workplace accident and your employer is uninsured, you need legal help. Call the workers’ compensation lawyers at the Smith Law Office at (816) 875-9373 or contact them online for legal guidance and representation in western Missouri.