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Oregon workers' compensation insurance
Oregon workers’ compensation law requires coverage for every employee, whether full- or part-time. Workers’ compensation provides medical benefits and partial lost wages for a person who’s been injured on the job.
Who needs workers’ comp insurance in Oregon?
Every state has different requirements for workers’ compensation insurance. In Oregon, every business with employees needs to carry workers’ compensation insurance.
Independent contractors do not need coverage, but Oregon employers who hire independent contractors need to make sure that they meet the legal description. The courts have looked at these and other questions to determine whether a person is an independent contractor or an employee:
- Do you control or direct how the work is performed?
- Is the worker paid hourly, commission-based, by the job, or otherwise?
- Do you supply tools, supplies, or equipment that the person uses to complete the job?
- Could you fire the worker without breaching a contract?
If you’re not sure whether someone is an independent contractor, seek advice from a workers’ compensation consultant to answer your questions.
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Do you need workers’ comp in Oregon if you are self-employed?
If you are self-employed, your requirements to carry workers' comp can depend on your role or how your business is classified. This applies specifically to:
Sole proprietors: In Oregon, sole proprietors are not required to have workers’ compensation insurance, though they can choose to purchase it. It's always a good idea to carry workers' comp, as health insurance plans can deny claims for injuries related to work.
Corporate officers: Usually, a corporate officer is not required to have workers’ compensation coverage if they also serve on the board and own at least 10% of the stock in the company. A construction company can have no more than two exempt officers unless it’s a family-run business.
Limited liability company (LLC) members: Generally, a member of an LLC is exempt from workers’ compensation requirements in Oregon. These people would follow the same rules and exemptions as corporate officers.
However, if individuals are working under contracts for a sole proprietorship, partnership, corporation, or LLC, they must also be considered independent contractors to be exempt.
In Oregon, every business with employees needs to carry workers' compensation insurance.
What does workers' comp cover for Oregon businesses?
Here are several examples of how workers' compensation insurance coverage helps pay expenses for injured workers:
- A retail store employee slips on a wet floor and hits their head. In this instance, workers' compensation would cover their emergency room trip, head MRI, and any follow-up medical expenses during their recovery.
- A registered nurse develops a shoulder injury from lifting and turning patients. Workers' comp would cover their surgery, medications, and physical therapy. It also provides temporary disability benefits until they have recovered, including a percentage of their average weekly wage.
- A wholesale stocker develops a back injury from many years of lifting and moving heavy stock onto pallets and trucks. Workers' comp would cover their medical provider appointment, medications, and then two months of physical therapy to help them recover.
- A fast food worker burns themselves while preparing an order for a customer. Workers' comp would cover their medical treatment and pain medication.
What does workers' compensation insurance not cover?
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
How much does workers' compensation insurance cost in Oregon?
The average cost of workers’ compensation in Oregon is $50 per month.
Your workers' comp premium is calculated based on a few factors, including:
- Payroll
- Location, such as Portland or Medford
- Number of employees
- Industry and risk factors
- Coverage limits
- Claims history
How is workers' compensation insurance purchased in Oregon?
Business owners in Oregon have a few choices when it comes to buying a workers' compensation policy:
- Private insurance companies. You could contact each workers' compensation insurance carrier independently to compare their products and rates, but that's where agents and brokers like Insureon come in. As the nation's leading digital insurance agency, Insureon partners with 30+ top-rated insurance carriers to deliver the right coverage for your business. Fill out an easy online application to get started.
- If denied, you can obtain coverage from the assigned risk pool. Businesses with higher risks can buy coverage from the Oregon Assigned Risk Pool, which is administered by the National Council on Compensation Insurance (NCCI).
- You can self-insure your business. Employers who meet certain requirements can apply to the Department of Consumer and Business Services (DCBS). You must provide assurance that the claims process will be conducted promptly and completely.
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Insurance providers use a specific formula for calculating workers' comp premiums:
Here's a breakdown of this equation:
- The classification rate reflects your employees' risk. Each worker has a classification code for the type of work they do. Insurers look up those codes in a database to find the associated rate, which is lower for office workers and higher for carpenters, tree trimmers, and others with a higher rate of injuries. Like most other states, Oregon relies on the National Council on Compensation Insurance (NCCI) database.
- The experience modification rate (EMR) reflects your business's risk. The average experience modification rate is 1.0, which means a business is similar in risk to others in its profession. Higher EMRs reflect higher risks, such as a history of claims. The EMR only comes into play for annual workers' comp premiums of at least $5,000, so it's not a factor for many small business owners.
- The insurer multiplies these numbers by your payroll divided by 100 to determine your workers' compensation rate. Workers' compensation audits are typically done each year to ensure your business pays the right premium for this coverage.
How can Oregon business owners save money on workers' comp?
To save money on workers' comp insurance, it's important to make sure you classify your employees correctly. 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, Oregon employers 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 an estimated payroll. It's useful for businesses that hire seasonal help or have fluctuating numbers of employees.
A ghost policy is a cheap option in some states, but it is not allowed in Oregon. A ghost policy is a workers' comp policy in name only. It provides no protection or medical benefits, but can fulfill contractual requirements for a workers' comp certificate at a reduced price.
Finally, a documented safety program can help lower workers' comp costs. A safer workplace means fewer accidents, which helps keep your premium low.
How does workers' compensation work in Oregon?
The Oregon workers' compensation system ensures coverage of medical expenses for workplace injuries and occupational diseases. It also provides temporary disability benefits while workers are recovering, usually two-thirds of the worker's average weekly wage.
Workers' comp policies usually include employer's liability insurance, which covers 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.
Workers' compensation benefits in Oregon include:
- Medical services by a provider chosen by the employee
- Temporary total disability benefits
- Temporary partial disability benefits
- Permanent total disability benefits
- Permanent partial disability benefits
- Vocational assistance to help injured employees return to work
- Death benefits for fatal incidents
For details, visit the Oregon Workers' Compensation Division's page for injured workers.
What are the penalties for not having workers’ comp insurance in Oregon?
Oregon workers’ compensation is regulated by the Workers’ Compensation Division (WCD).
If it’s determined that you didn’t have the correct coverage, you’ll incur a penalty of twice the amount of the premium that you should have paid for insurance, at a $1,000 minimum. If noncompliance continues, you would incur additional penalties of $250 per day, without a limit.
In extreme cases, business owners who fail to carry coverage could face additional penalties, including jail time.
Workers’ compensation death benefits in Oregon
Oregon workers’ compensation death benefits are available to survivors of an employee who dies as a result of a work-related injury or illness. To claim benefits, the survivor must have been wholly or partially dependent on the deceased worker for financial support.
The following survivors are eligible for death benefits:
- Spouse
- Children up to age 18
- Children up to age 26 who is enrolled in higher education or GED courses
- Other financially dependent relatives
Workers’ compensation insurance also covers up to about $20,000 in funeral and burial costs. For details, visit the Workers' Compensation Division's page on death benefits.
Workers’ comp settlements in Oregon
An Oregon workers’ compensation settlement is different from an award. An award is the actual benefit that the employee receives. The settlement is a contract between the insurer and the employee that provides a lump sum to the injured worker in exchange for the worker relinquishing rights to bring further claims based on the injury.
The State of Oregon allows two types of settlements:
Claim disposition agreement. A CDA occurs when the insurance company accepts and voluntarily pays a claim. It doesn’t terminate the worker’s rights to further medical treatment, but it does release claims for:
- Time-loss benefits
- Permanent disability benefits
- Vocational assistance, including job retraining
- Reopening of the claim if the condition becomes worse or aggravated
Disputed claims settlement. If the insurer denies a workers’ comp claim in Oregon, the employee can appeal to the Oregon Workers’ Compensation Division.
Settlements are based on the following factors:
- Severity of injuries
- Cost of medical care
- Pre-injury wages
- Ability to return to work
- Need for job retraining
- Whether there is conflicting evidence
Workers’ compensation statute of limitations in Oregon
Oregon employees must inform their employer as soon as possible when an injury has occurred. For most injuries, the Oregon statute of limitations requires that a workers’ compensation claim be filed within one year from when the worker first discovered the work-related injury.
The employer is required to notify the insurer within five days of an insurable incident.
Get free workers’ comp quotes with Insureon
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.
Updated: August 21, 2025
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