Missouri workers' compensation insurance

All companies with five or more employees must provide workers’ compensation insurance in Missouri. Businesses in the construction industry are required to have workers’ comp even if they only have one employee.

The state of Missouri’s legal definition of employee is quite broad. It covers full-time and part-time employees, along with seasonal and temporary workers.

In general, Missouri employers must include themselves in their company’s workers’ compensation coverage. The exceptions are if:

• You’re a sole proprietor
• You’re part of a partnership that owns the firm

Sole proprietors and partners can choose to participate in a workers’ comp plan. Buying workers' comp could save you money in the long run, since your health insurance provider could deny a claim for a work-related injury. It also provides disability benefits while you're unable to work.

Missouri workers’ compensation laws exempt a limited number of employee types, including:

• Farm laborers
• Domestic servants
• Certain real estate agents
• Direct sellers
• Motor carrier owner operators

Employers with fewer than five employees and those who employ exempt employees (farm laborers, domestic help, etc.) may elect to buy this coverage.

Corporate officers are considered employees and therefore must have workers’ comp coverage.

One exception applies: If the corporation has no more than two owners who are also the company’s only employees, then those individuals can opt out by contacting the Missouri Department of Labor's Division of Workers’ Compensation (DWC).

Additionally, here's what your workers' comp policy won't cover:

• Injuries caused by intoxication, drugs, or company policy violations
• Injuries claimed after a firing or layoff
• Wages for a replacement worker
• Occupational Safety and Health Administration (OSHA) fines

Insurance providers use a specific formula for calculating workers' compensation rates:

There are several steps you can take to save money on workers' comp insurance:

It's important to make sure you use the appropriate classification codes for your employees. Employees with desk jobs or other jobs with a low risk of injury cost less to insure. This also helps you avoid misclassification fines.

In some cases, small business owners can choose to buy pay-as-you-go workers' compensation. This type of workers' comp policy has a low upfront premium, and lets you make payments based on your actual payroll instead of estimated payroll. It's useful for businesses that hire seasonal help or have fluctuating numbers of employees.

In some cases, a cheap ghost policy might be sufficient. A ghost policy provides only a certificate of insurance, which you might need to bid on a project or sign a contract. It's appropriate for self-employed business owners who don't want workers' comp coverage for themselves, or who might hire employees in the future.

Be aware that this type of coverage doesn't provide any benefits. You could find yourself on the wrong side of the law if you're required to carry workers' comp for yourself or your employees.

When an employee suffers a workplace injury or develops an occupational disease, workers' compensation covers the cost of their medical care. It also provides disability benefits while the employee is recovering and for permanent impairment or disfigurement.

Policies usually include employer's liability insurance, which helps cover legal costs if a worker sues their employer over an injury. However, the exclusive remedy provision in most workers' comp policies prohibits an employee from suing their employer if they accept workers' comp benefits.

Workers' compensation benefits in Missouri include:

• Medical benefits
• Temporary total disability benefits
• Temporary partial disability benefits
• Permanent total disability benefits
• Permanent partial disability benefits
• Death benefits

Missouri business owners who fail to provide workers’ comp when required can be charged with a class A misdemeanor and a penalty of three times the workers’ comp annual premium they should have paid or up to $50,000, whichever amount is greater. They can also be held liable for the expenses of injured employees.

If caught without workers’ compensation a second time, they could be charged with a felony.

If an employee dies as a result of a work-related injury or illness, some family members may receive death benefits. In Missouri, these include weekly payments to cover a portion of the deceased employee’s income, along with up to $5,000 for funeral and burial costs.

Eligible family members include:

• The deceased worker’s spouse
• A child under age 18 (or a stepchild claimed as a dependent for federal tax purposes)
• A child younger than age 22 (if going to school full time or on active duty in the U.S. military)
• A child of any age who’s unable to work due to a physical or mental disability

The deceased worker’s dependent family members will receive death benefits calculated on the basis of the person’s pre-injury weekly pay. However, it will not be more than two-thirds of the deceased employee’s average weekly wage, subject to the state’s mandated minimum and maximum benefit amounts.

Benefits will continue until the surviving spouse dies or gets remarried. If the latter happens, the spouse will get a final lump-sum payment equal to two years of benefit payments.

A workers’ compensation settlement is an agreement between the injured worker, employer, and insurer that will resolve a workers’ compensation claim. This can benefit both the employee and the employer.

A settlement in a Missouri workers’ compensation claim is typically a full and final settlement. This means the employee forfeits the right to receive any future workers’ comp benefits. However, if the employee will require future extensive medical treatments, the insurance company may agree to pay for them even though the rest of the claim has been closed.

All settlements are subject to the approval of an administrative law judge at the Missouri Division of Workers’ Compensation.

In Missouri, the statute of limitations for workers’ comp claims is within two years from the report of injury or the last workers’ comp payment. Additionally, if an injury wasn't reported to the Division of Workers' Compensation, the injured worker has three years to file a claim.

If you are ready to buy a workers' compensation policy, start a free application with Insureon to compare quotes from top-rated insurance carriers. A licensed insurance agent will help answer your questions and explain your coverage options. Once you find the right policy, you can usually begin coverage and get your certificate of insurance in less than 24 hours.