Coverage | Work Comp Basics

Get to know the basics of workers comp insurance.

Work comp insurance, also known as workers comp or workers compensation, is required by most states for most businesses. It protects employers and employees in the event that an employee is injured on the job. It can cover medical costs, lost wages, vocational rehabilitation, and other expenses. Coverage requirements vary by state, so check with your insurance agent for your specific needs.

Basic work comp requirements

We currently provide work comp insurance in six states: Arkansas, Illinois, Iowa, Kansas, Nebraska and Tennessee. We also partner with MEM to cover companies with exposure in Missouri.

The following information is provided for general educational purposes and should not be relied on when determining your workers compensation coverage requirements in any state. Please contact your agent or carrier to discuss your particular workers compensation coverage requirements and options.

Click a state below to see general work comp requirements. To find your state’s compliance information, required forms and posters, and our injury reporting kit, visit our virtual claims kit.

 

In Arkansas, work comp is required for:

  • Businesses with three or more employees
  • Contracting businesses with one employee
  • Sole proprietors working in construction
  • Partners (may elect to be excluded)
  • Corporate officers (may elect to be excluded)

It is not required for:

  • Sole proprietors not working in construction

In Illinois, work comp is required for:

  • Businesses with one or more employee
  • Sole proprietors in construction, some trucking and extra hazardous businesses
  • Corporate officers (may elect to be excluded)

It is not required for:

  • Sole proprietors
  • Partners
  • LLC members

In Iowa, work comp is required for:

  • Businesses with one or more employee
  • Corporate officers (may elect to be excluded)

It is not required for:

  • Sole proprietors
  • Partners
  • LLC members

In Kansas, work comp is required for:

  • Businesses with one or more employee
  • Corporate officers (may elect to be excluded)

It is not required for:

  • Sole proprietors
  • Partners
  • LLC members
  • Certain agricultural businesses
  • Businesses with gross annual payroll of less than $20,000

In Nebraska, work comp is required for:

  • Businesses with one or more employee
  • Corporate officers (may elect to be excluded)

It is not required for:

  • Sole proprietors
  • Partners
  • LLC members

In Tennessee, work comp is required for:

  • Businesses with five or more employees
  • Contracting or construction businesses with one employee
  • Corporate officers (may elect to be excluded)

It is not required for:

  • Sole proprietors
  • Partners
  • LLC members

In Missouri, work comp is required for:

  • Businesses with five or more employees
  • Contracting businesses with one employee
  • Corporate officers
  • LLC members (may elect to be excluded)

It is not required for:

  • Sole proprietors and business partners

 

How work comp premiums are calculated.

Your work comp policy’s premium with Previsor is determined by your:

  • Industry classification code: Determined by the National Council on Compensation Insurance (NCCI)
  • Payroll
  • E-mod: Factor calculated by the NCCI based on your loss compared to industry average loss

 

How to reduce work comp premiums.

It sounds deceptively simple, but the best way to reduce your premium is to avoid injuries. At Previsor, that’s where we excel, helping you build a safety-focused culture. It’s an approach that pays in more ways than one. When people are safe at work, they’re happier and more productive. Reducing or eliminating work comp claims lowers your premium over time. And if an injury does occur, managing the claim process can also keep premium costs down.

Learn about Previsor’s safety programs. >

How to purchase work comp insurance from Previsor.

It’s easy. Simply talk to your insurance agent, and tell them you’d like to choose Previsor Insurance as your workers compensation carrier. If you don’t have an agent, we’ll help you find one.

Find one near you. >

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