Workers’ Compensation in Georgia
Employers in Georgia have several responsibilities to their employees. One of the more important responsibilities is to provide a safe work environment. Even in the best conditions, accidents and diseases can still occur. That is why Workers’ Compensation is an important tool of no-fault insurance that provides monetary and medical benefits to employees or their survivors. Having this coverage is not only helpful for your business but also required for many employers and governed by Georgia state law.
Who Should have Workers’ Comp Insurance in Georgia?
The Georgia Workers’ Compensation Act (WCA) requires any employer with three or more employees to provide Workers’ Compensation insurance for their employees. There are some specific exclusions, but most employees should be covered. One of the individuals excluded from coverage is the independent contractor. However, just because you pay your employees as “1099” and not as a “W-2”, does not explicitly qualify the individual as an independent contractor. Essentially, the paying of a person 1099 is a tax reference point. The WCA has its own definition of an independent contractor. Those include certain sports officials, people who buy and resell products, people who distribute printed materials and any worker who,
- Is party to a written or implied contract intending to create an independent contractor relationship with the employer;
- Has the right to exercise control over the time, manner, and method of work to be performed; AND
- Is paid on a set price per job or on a per-unit basis, rather than on a salary or hourly basis.
If your “1099” does not meet all these criteria, they should be covered by a Workers Comp policy.
For those without 3 or more employees it’s smart to get a Workers’ Compensation policy as well. Though not required by Georgia law, if you do not have a workers’ compensation policy and an employee is injured, they would have the right to file a personal injury claim against you. In a civil lawsuit, the employee could be entitled to more compensation than what’s provided in a Workers’ Compensation policy. Specifically, pain and suffering are not recoverable in a Workers’ Comp claim but are in a civil lawsuit.
What happens if I don’t have Workers’ Compensation Insurance in Georgia?
When a business is subject to the WCA, they must maintain adequate workers’ compensation coverage through an insurance provider or self-insurance. Failure to maintain this coverage could result in:
- A civil penalty of between $500 and $5,000 per violation and
- The costs of collecting the penalty amount, including attorneys’ fees
- Conviction of a misdemeanor punishable by a fine between $1,000 and $10,000 and/or imprisonment for up to 12 months
Additionally, if one of your employees is injured and you do not have adequate coverage, the WCA can enforce other penalties including requiring you to pay benefits 10% greater than what the employee would’ve been entitled to, the employees attorney fees and all costs associated with the proceedings.
How do I get Workers’ Compensation Insurance in Georgia?
At Roundtable Insurance our agents are ready to help you understand your Workers’ Compensation coverage requirements in Georgia and get you a quote. In addition to the mandated coverage, we have relationships with insurance carriers which will provide your company with additional benefits, tools and resources. These include safety training resources, HR advice, nurse triage hotlines, telemedicine services, risk management consultation and more! Give us a call today to get started, (770) 726-8700.
