Buying workers’ compensation for:


State Fund: Yes, competitive - Workers’ Compensation Fund of Utah WCF has insured Utah employers since 1917. WCF is a non-profit, mutual insurance company managed by a board of directors. WCF is financed entirely by premium payments from customers and investment income. WCF employs 350 people who provide underwriting, safety, claims and legal services to more than 31,000 Utah employers.

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

Who is Required to Purchase Workers’ Compensation Coverage?

All employers are required to have workers’ compensation insurance except employers of agricultural laborers with payroll less than $50,000 (agricultural operations with payroll between $8,000 to $50,000 have the option of either workers’ compensation coverage or liability coverage), casual or domestic workers, real estate brokers, sole proprietors and partners.

NOTE: A general contractor must ensure all subcontractors, including sole proprietors and partners, have workers’ compensation coverage.

Proprietors and partners of a company are not covered by their company’s workers’ compensation policy unless they elect coverage.

Corporate officers and directors are considered employees of the corporation they work for and are covered by the workers’ compensation policy unless they elect not to be covered.

Factors that Impact Coverage

  • You are a sole proprietor or partner: In Utah, you are excluded from coverage but have the option to include yourself.
  • You are a corporate officer or member of an LLC: Utah includes you in coverage, but you have the option to exclude yourself.
  • You are a real estate broker: You may be exempt from workers’ compensation coverage.

Failure to Secure Compensation

Employers that fail to obtain insurance when required may be ordered by the Department to cease operations until coverage is obtained. The normal penalty for an illegal lapse in worker’s compensation coverage is twice the amount of premium not paid during the uninsured time period or $750, whichever is greater. An employer who has an illegal lapse in worker’s compensation insurance of 7 consecutive days or less is subject to a $100 penalty for each uninsured day up to 7 days, provided that the employer has not previously had an illegal lapse in coverage and that no injury occurred during the uninsured period.

An uninsured employer is personally liable to reimburse the Uninsured Employers Fund for benefit payments to an injured employee. Aggressive collection action including warrants, levies, garnishment and execution against property are used to insure reimbursement. The normal exemptions of property from seizure and sale on execution of a judgment do not apply to uninsured employers.

Proof of Coverage is Required

Employers are required to post in conspicuous places typewritten or printed notices stating that they have complied with all the rules and regulations securing compensation to employees and their dependents. The notices should state the name of the insurance carrier, the phone number, and steps to report an industrial claim.

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.