Buying workers’ compensation for:


State Fund: No

Insurance Coverage Requirements: Workers’ Compensation is compulsory in Missouri, waivers are not permitted.

Who is Required to Purchase Workers’ Compensation Coverage?

Workers’ compensation coverage is compulsory for all employers that have five or more employees. Partners and sole proprietors may elect to obtain workers’ compensation coverage on themselves. Construction industry employers who erect, demolish, alter or repair improvements must carry workers’ compensation insurance if they have 1 or more employees.

Limited Liability Companies need to obtain workers’ compensation insurance coverage for the employees of the limited liability company who are not members of the limited liability company. Members of the limited liability company must be provided workers’ compensation coverage. However, members of the limited liability company may individually elect to reject coverage by providing a written notice of rejection, on a form, Limited Liability Company Exclusion Endorsements, developed by the Missouri Department of Insurance, to the Limited Liability Company and insurer.

A corporation may be exempt from workers’ compensation requirements only if there are no more than 2 owners of the corporation, who are also the only employees of the corporation. It requires filing with the Division a notice of election to withdraw. A corporation that makes this election may withdraw its election by filing with the Division a notice to withdraw the election. The notice is effective 30 days after the date of filing, or at a later date as may be specified in the notice of withdrawal.

Factors that Impact Coverage

  • You are a sole proprietor or partner: In Missouri, you are considered an employer not an employee, and therefore excluded from coverage. However, you have the option to add yourself to the policy.
  • You are a corporate officer: You are considered an employee in Missouri and must be covered unless there are only two owners of the corporation who are also the only employees.
  • You are a member of an LLC: Missouri includes you in coverage unless you specifically exempt yourself using a special endorsement to your policy.

Failure to Secure Compensation

An employer who knowingly fails to insure its workers’ compensation liabilities is guilty of a class A misdemeanor and liable to the state of Missouri for a penalty of up to 3 times the annual premium or up to $50,000, whichever amount is greater. A subsequent violation is a class D felony.

Proof of Coverage is Required

All employers must post a notice at their place of employment, in a sufficient number of places on the premises to assure that the notice will reasonably be seen by all employees. An employer who has employees who may not reasonably be expected to see a posted notice must notify each employee in writing of the contents of the notice.

The notice must include:

(1) That the employer is operating under and subject to the provisions of the Missouri workers’ compensation law;
(2) That employees must report all injuries immediately to the employer by advising the employer personally, the employer’s designated individual or the employee’s immediate boss, supervisor or foreman and that the employee may lose the right to receive compensation if the injury or illness is not reported within 30 days or in the case of occupational illness or disease, within 30 days of the time he or she is reasonably aware of work relatedness of the injury or illness; employees who fail to notify their employer within 30 days may jeopardize their ability to receive compensation, and any other benefits under this chapter;
(3) The name, address and telephone number of the insurer, if insured. If self-insured, the name, address and telephone number of the employer’s designated individual responsible for reporting injuries or the name, address and telephone number of the adjusting company or service company designated by the employer to handle workers’ compensation matters;
(4) The name, address and the toll-free telephone number of the division of workers’ compensation;
(5) That the employer will supply, upon request, additional information provided by the division of workers’ compensation;
(6) That a fraudulent action by the employer, employee or any other person is unlawful

Any employer who willfully violates the provisions of this section is guilty of a class A misdemeanor and can be punished by a fine of not less than $50 nor more than $1,000, or by imprisonment in the county jail for not more than 6 months or by both fine and imprisonment, and each violation or each day the violation continues will be deemed a separate offense.

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.