Rhode Island workers' compensation insurance

Rhode Island imposes stringent workers’ compensation insurance rules on its employers. According to state law, employers must provide employees with workers’ comp insurance.

However, there are a few exceptions to the state’s workers’ compensation law:

• Sole proprietors and partners
• Certain real estate workers
• Agricultural workers
• Domestic service employees

Police, firefighters, and federal employees are excluded from coverage since other programs protect them.

Municipal employees aren’t covered unless their municipality elects to provide them with workers’ comp protection.

It depends on what type of business owner you are.

Sole proprietors and partners are exempt. Unlike in many other states, sole proprietors and partners can’t voluntarily buy workers’ comp insurance for themselves.

The state of Rhode Island requires workers’ comp insurance coverage for corporate officers and members of limited liability companies (LLCs).

In Rhode Island, independent contractors are not eligible for workers’ compensation benefits.

An independent contractor is someone who maintains an independent business and is available for work. Independent contractors must file a Notice of Designation as Independent Contractor (DWC-11-IC) form with the Rhode Island Department of Labor and Training (DLT).

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' comp premiums:

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, Rhode Island 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 Rhode Island. 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.

When an employee suffers a workplace injury or develops an occupational disease, workers' compensation insurance covers the cost of their medical care. It also provides lost wage benefits while the employee is unable to work.

Workers' compensation benefits for injured workers in Rhode Island include:

• Medical benefits (reimbursement for all medical expenses related to the injury)
• Weekly compensation for total incapacity
• Weekly compensation for partial incapacity
• Vocational rehabilitation
• Death benefits payable to dependents

Most workers' compensation policies include employer's liability insurance, which helps cover legal expenses if an employee blames their injury on the employer's negligence or unsafe working conditions.

Once the employee accepts workers' compensation benefits, they're usually prohibited from suing their employer due to the exclusive remedy provision in most policies.

For more details, visit the Rhode Island DLT's Division of Workers' Compensation.

If one of your employees dies as a result of a job-related illness or injury, the person’s dependents are entitled to receive death benefits. These include payments to cover burial and funeral expenses not to exceed $20,000.

Surviving spouses, minor children, and other dependents are eligible to receive a weekly benefit payment. The size of this payment varies based on the worker’s marital status and the number of dependents. However, the total benefit can’t be more than the state’s maximum weekly total disability benefit.

A workers’ compensation settlement is an agreement between the injured employee, employer, and insurer that resolves a workers’ compensation claim. This benefits both the employee and the employer.

In Rhode Island, many workers’ comp claims end in settlements. This means the parties to the claim – the injured employee, the company, and the insurer – must agree on a lump-sum payment in return for the employee (or the employee’s survivors) agreeing to forgo future payments.

There are two basic forms of settlements in Rhode Island:

A denial and dismissal settlement closes out the case without establishing liability against the employer or insurer.

A commutation settlement closes out the entire claim in cases where benefits have been paid for six months or more. The employee (or survivors) receives a lump-sum payment or a structured settlement in return for the employer closing out all future liabilities.

Workers’ comp settlements in Rhode Island are subject to complex rules, and a workers’ comp judge must approve them.

In accordance with Rhode Island's workers' compensation system, employees must file a claim within two years of the work injury in most cases. Rhode Island law allows some flexibility in the length of this period, depending on the nature of the case.

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 during your free consultation.

Once you find the right policy, you can usually begin coverage and get your certificate of insurance in less than 24 hours.