Rhode Island

Buying workers’ compensation for:

Rhode Island

State Fund: No

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

Who is Required to Purchase Workers’ Compensation Coverage?

Effective January 1, 1999, every person firm, public service or private corporation, including the State, that employs employees regularly in the same business is subject to the Workers’ Compensation law.

Exemptions include: Sole proprietors, partners, and independent contractors. Certain real estate), agricultural and domestic service employees may be exempt.

Any person who was appointed a corporate officer between January 1, 1999 and December 31, 2001, and was not previously an employee of the corporation is exempt, but can elect to be covered by filing a DWC-11C form with the Division of Workers’ Compensation.

Factors that Impact Coverage

  • You are a sole proprietor or partner: In Rhode Island, you are excluded from coverage.
  • You are a corporate officer or member of an LLC: Rhode Island includes you in coverage, but you have the option to exclude yourself.
  • You are a licensed real estate brokers, salespersons or real estate appraisers: If you are paid on a commission-only basis, you are exempt from workers’ compensation coverage.

Failure to Secure Compensation

There are civil and administrative penalties that can be imposed for each day of noncompliance. There are also criminal penalties, which can result in fines and possible imprisonment.

Proof of Coverage is Required

All employers must disclose to all prospective employees at the time of application either that the employer is subject to or exempt from workers’ compensation. If exempt, the specific type of exemption must be disclosed. RI Workers’ Compensation Law requires employers to post a notice that includes insurer information.

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.