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Louisiana Workers' Compensation Insurance

Louisiana small businesses are generally required to carry workers’ compensation insurance.

Unlike other small business policies, workers’ compensation is regulated at the state level, so rates and coverage requirements also differ from state to state. Almost universal, however, is that employers are legally required to carry workers’ compensation insurance that covers all employees on their payroll.

Below we cover what Louisiana small business owners need to know about workers’ compensation.

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Small Business Work Comp Requirements in Louisiana

Businesses with one or more employees working in Louisiana must carry a workers’ compensation insurance policy. This includes may be full-time, part-time, seasonal workers and minors.

Some exceptions include:

  • Subcontractors: Unless considered an employee, subcontractors won’t be covered by the company’s insurance policy and may be asked to provide proof of work comp. In specific situations, subcontractors or independent contractors may be considered employees if performing “substantial manual labor.”
  • Real estate agents: If licensed to conduct business in Louisiana, real estate agents are exempt from carrying workers’ compensation insurance.
  • Sole proprietors, corporate officers and partners: In Louisiana, they are counted as employees and included in coverage, but have the option to exclude themselves.
  • LLC members: Louisiana includes members in coverage, but they have the option to exclude themselves if they own 10% or more of the company.
  • Domestic employees, uncompensated officers and directors of certain non-profit organizations, and public officials might be specifically exempted.

An expert in workers’ compensation insurance can help you determine which employees can choose to exclude themselves, and help you comply with your state’s laws.

How to Buy Small Business Workers’ Compensation Insurance

Louisiana has a private market. Employers can purchase workers' compensation insurance from any insurance carrier or agency that is licensed to write in that state.

If you’re still having trouble, you can contact the Louisiana Workforce Commission, which will help you find coverage.

Coverage and Rates in Louisiana

A Louisiana small business workers’ compensation policy will vary in cost based on payroll, industry and claims history. A work comp policy protects both employee and employer from risk when a worker is injured on the job. This means that the cost is going to be dictated by the size of your workforce and the type of work employees do.

Louisiana is one of the safest states for workers, with some of the lowest rates of workplace injuries nationwide. Still, costs remain high compared to other states and has some of the highest work comp costs per claim. Critics point to high medical costs and a complex system as possible culprits.

Rates have declined over the past decade, just not at the same rate as other states.

Contact the Louisiana Workforce Commission for information on controlling worker health and safety. Companies that participate in the commission’s educational programs may be able to reduce their workers’ compensation premiums.

Louisiana Work Comp Resources

Editor’s note: Last updated September 24, 2018

Here's What You Need to Get Started

To buy workers compensation insurance, you need to request a quote from a licensed insurance agent and provide some details about your business.

Here’s what to have in front of you:

  • Number of employees in each class code.
  • Total payroll for all employees. You may be able to exclude yourself if you don't wish to be covered under the policy. 
  • Federal ID Number. If you are a sole proprietor, you can use your Social Security Number.
  • Copy of your workers comp insurance policy, if you've had coverage or claims in the past few years. If you know your company's experience mod, please have your experience mod rating sheet or policy in front of you. Otherwise, you will be assigned a default rating of 1.0.

The information on this page has been interpreted and summarized for your convenience. Please consult your state's governing authority for the most current and complete legislation.