Utah workers’ compensation insurance

Each state has different workers’ compensation laws, and in Utah, workers’ compensation insurance is mandatory for all employers, with a few exceptions.

Once you hire even one employee, you must provide workers’ comp insurance to that worker and all future employees. The few exceptions are:

• Some agricultural employees
• Casual or domestic employees
• Some real estate and insurance brokers

A business can elect to exclude some or all of its corporate officers and directors from workers’ comp insurance. However, it must first file notice with its workers’ comp insurer and file for an exemption with the State of Utah Labor Commission.

Business owners with no employees, such as sole proprietors, independent contractors, partnerships, and limited liability companies (LLCs), are not required to carry workers' compensation insurance for themselves in Utah.

However, you are strongly encouraged to buy workers' comp even when it's not required. If you get injured on the job, a workers' comp policy can help pay your medical expenses and provide part of the wages you lose during your temporary disability.

Your personal health insurance provider might deny your claim if your injury is related to your work, which would leave you paying these bills on your own.

When a worker is injured on the job, workers' compensation covers the cost of their medical bills. It also provides indemnity benefits to help cover the employee's loss of income. In the event of permanent impairment or disability, workers' comp can provide disability compensation for the life of the worker.

Workers' compensation benefits for injured employees in Utah cover:

• Medical expenses for reasonable and necessary medical care related to the injury
• Temporary partial disability benefits
• Temporary total disability benefits
• Permanent partial disability benefits
• Permanent total disability benefits

For example, if an IT tech or software developer is diagnosed with carpal tunnel syndrome due to keyboard overuse, your workers' comp policy would pay for their medical bills, including long-term medication and physical therapy.

Or, if an employee at your IT consulting firm trips in the office stairwell and suffers a concussion, then your workers' comp policy would pay for their ambulance ride and emergency room visit.

Policies usually include employer's liability insurance, which can help cover legal expenses if an employee blames their employer for an injury. The exclusive remedy provision in most workers' comp policies prohibits an employee from suing their employer once they accept workers' comp benefits.

Utah business owners can compare quotes and purchase a policy from private insurance companies. TechInsurance offers this service with its online insurance marketplace.

If you’re unable to purchase workers’ comp insurance through the voluntary market referenced above because of your firm’s high-risk status, you can purchase coverage from the Workers’ Compensation Fund of Utah. The WCF is Utah’s workers’ comp provider of last resort.

Utah employers who qualify can also self-insure their workers' compensation claims. This means they’ll pay for their own workers’ comp benefits rather than submit them to an insurance company.

To qualify for self-insurance, they must file an application with the Utah Labor Commission.

In Utah, employees must file a workers’ comp claim within one year from the date of injury or illness.

The penalties for violating Utah’s workers’ compensation statute can be severe:

• A penalty of at least $1,000
• A legal injunction against doing business in the state
• Loss of the so-called “exclusive remedy,” which protects employers from getting sued for workers’ comp benefits

If you are ready to explore workers’ compensation coverage options for your Utah business, TechInsurance can help small business owners compare business insurance policy quotes with one easy online application. Start an application today to find the right insurance coverage at the most affordable price for your business.