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Workers’ compensation is a required insurance policy provided by the employer to pay employee benefits for job-related injuries. Disability or death that arises out of and in the course of employment. Since each state operates its own workers’ compensation system, employer requirements can vary considerably from one state to the next.
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Wisconsin was the first state to enact a workers’ compensation program in 1911. Nine additional states created programs by the end of that year. However, it took until 1948 before all 50 states had launched a workers’ compensation program with Mississippi being the last state to participate.
Kansas mandates that most employers carry workers’ compensation insurance for their employees. There are several exceptions, such as certain agricultural pursuits, sole proprietors and partnerships, but employers with $20,000 or more in gross annual payroll are required to provide workers’ compensation coverage for their employees.
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Kansas-based employers have the following options available to them to satisfy this requirement:
Missouri requires employers with 5 or more employees to carry workers’ compensation insurance. However, that number drops to one employee in the construction industry. Employers who do not meet the minimum employee threshold or qualify for other exemptions from the law can (and should) purchase workers’ compensation insurance. Otherwise, these employers leave themselves exposed to potential employee lawsuits.
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Missouri employers may purchase workers’ compensation coverage from a private insurance company authorized to sell it by the Missouri Department of Insurance. Employers who cannot procure insurance from an authorized insurance company can procure coverage through the State’s assigned risk pool managed by Traveler’s Commercial Casualty Company. Purchasing workers’ compensation insurance through an assigned risk pool can be cost-prohibitive for many small and mid-sized employers and is therefore usually the last resort to obtain coverage.
The good news is that Missouri employers can work with Axcet HR Solutions to meet their workers’ compensation obligations.
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Located in Kansas City on the Kansas side of the state border, Axcet HR Solutions provides an alternative to operating an in-house workers’ compensation program and numerous other services related to human resources. Employers may request a consultation to learn more. Working with Axcet relieves administrative burdens for smaller companies and leaves them free to pursue long-term company growth.
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