For School Administrators

United States only

Workers' Compensation Insurance

We are NOT lawyers but here are comments from people who are

Check with your state agency and a knowledgeable local attorney

The definition: a form of insurance providing wage replacement and medical benefits to

employees injured in the course of employment in exchange for mandatory relinquishment

of the employee's right to sue their employer for the tort of negligence. Very complicated.

Alabama - Businesses with five or more employees must carry coverage. With corporations or LLCs, officers and members are counted as employees. If there are more than four employees, workers’ compensation insurance is required. Details/Exceptions: Coverage isn’t required for businesses with four or fewer regular employees (full-time or part-time). Employers of household/domestic employees, farm laborers, or casual employees aren’t required to provide coverage, but have the option to. Sole proprietors can opt out of carrying coverage. Purchased from a commercial carrier. Approved businesses may self-insure. There is no state-administered fund - see Alabama Department of Labor.

Alaska - Employers with one or more employees must have workers’ compensation insurance. Details/Exceptions: Sole proprietors and some other arrangements are exempt. Purchased from a commercial carrier or through Alaska’s state-administered fund. Approved businesses may self-insure - see Alaska Department of Labor and Workforce Development

Arizona - Mandatory for any business (including sole proprietors) that regularly hires or employs at least one employee. NOT required for working partners, independent contractors, casual workers, or domestic servants working in your home. Sole proprietors can opt out of coverage if they don’t have employees, but can also choose to carry coverage. Purchased from a commercial provider. Approved businesses may self-insure - see Industrial Commission of Arizona

Arkansas - Most employers with three or more employees must carry coverage. There are exceptions to the three-or-more requirement, so employers with fewer than three should check with authorities. Purchased from a commercial provider. Approved businesses may self-insure - see Arkansas Workers’ Compensation Commission

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