"How many Employees before I am required to have Work Comp?"

The Importance of Workers' Compensation: 

I am often asked “How many Employees do I have to have before I am required to have Work Comp Coverage?”  This is a very good question.  The answer in the State of MO is 5 (including Owners/Officers) and only 1 Employee for certain Construction Employers.  However, the best answer, for all Employers, is just one Employee. This is why: 


Even if not required by law, if an Employee is injured on the job, the Employer can still easily be taken to Court where they will face: 

• Attorney Costs

• Hours of time away from their business 
  

• And a potentially huge Judgment with no Insurance Coverage for Protection

• Protection from Civil Suits.  Monetary Exposure to Civil Suits can be significant.

• Provides a Competitive Advantage when competing for business (Contractors in particular) – Client will feel comfortable choosing you, since they are protected if your employee is injured while working at  their property.

• Protection from Fines levied by the State for not having Workers’ Compensation Coverage (In MO the fine is substantial).

• Retention of Key Employees since they will not suffer financially due to a work related injury.