Connecticut

Buying workers’ compensation for:

Connecticut

State Fund: No

Insurance Coverage Requirements: Workers’ Compensation is compulsory in Connecticut, some waivers are permitted.

Who is Required to Purchase Workers’ Compensation Coverage?

Connecticut Workers’ Comp Law requires that any person, corporation, Limited Liability Company, firm, partnership, voluntary association, joint stock association, the state and any public corporation within the state who employs one or more employees provide workers’ comp insurance coverage.

Exceptions

  • Employment of a casual nature
  • Service in or about a private dwelling provided, not on a regular basis and not providing service over twenty-six hours per week
  • Corporate officer

Factors that Impact Coverage

  • You are a sole proprietor: You are excluded from coverage but have the option to get coverage for yourself.
  • You are a partner: You are included in coverage but have the option to exclude yourself.
  • You are a corporate officer or a member of an LLC: You are included in coverage but have the option to exclude yourself.

Failure to Secure Compensation

Whenever the commissioner finds that the employer is not in compliance with the requirements, a civil penalty of not less than $500 per employee or $5,000, whichever is less and not more than $50,000 will be assessed against the employer.

In addition to the above penalties, an additional penalty of $100 is assessed for each day after the finding of noncompliance that the employer fails to comply with the insurance and self-insurance requirements. Any penalties assessed under the provisions of this subsection can not exceed $50,000 in the aggregate.

When any employer knowingly and wilfully fails to comply with the insurance and self-insurance requirements, the employer, if he is an owner, in the case of a sole proprietorship, a partner, in the case of a partnership, a principal, in the case of a limited liability company or a corporate officer, in the case of a corporation, will be guilty of a class D felony.

Proof of Coverage is Required

Each place of employment subject to Workers’ Compensation must post a notice in a place readily accessible to all employees. The notice must be printed in type not less than ten point bold face.

Penalties: If an employer willfully fails to conform, the fine is not more than $250 for each such failure.

Independent Contractors

Mistakenly classifying an employee as an independent contractor can result in significant fines and penalties.

View 20 factors used by the IRS and our independent contractor questionnaire to determine whether you have enough control over a worker to be an employer.

Key Resources

Other Tips

If your insured employs workers in multiple states or your insured’s employees are temporarily working out-of-state, they need to purchase insurance for all the states where their workers are located, according to each state’s laws. Call 1-800-476-2948 and let us walk you through it.

The nature of your insured’s business, number of employees being covered and past coverage and claims are all factors in how much their premium will cost.