A Workers' Compensation Insurance Guide for Louisiana

Full analysis of  HAZARDOUS INDUSTRIES  and  INSURANCE COSTS  in your city.

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New Orleans
Baton Rouge
Lafayette
Lake Charles

Kenner
Houma
New Iberia
Slidell

Central
Sulphur
Hammond
Gretna

Thibodaux
Crowley
Baker
Mandeville

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Who is covered under Louisiana workers' comp insurance?

Employers are required to purchase workers’ compensation insurance even if they have only one employee. All full-time, part-time, seasonal and minor employees must be covered beginning on their first day of employment. 

In Louisiana, subcontractors and certain independent contractors may be considered employees if they perform substantial labor in pursuit of the employer’s trade, business or occupation. Sole proprietors and corporate officers are included in Louisiana workers’ compensation coverage but can choose to exclude themselves if they own at least 10% of the business. 

Domestic employees; most real estate agents; uncompensated officers and directors of some nonprofit organizations; public officials; and volunteer workers are exempt from Louisiana workers’ compensation coverage. 

Louisiana has a diverse economy that is driven by its gulf location and busy Mississippi River port. For that reason, the state has some unique exemptions from workers’ compensation coverage, including the following:

  • Musicians and other performers who are providing services related to a performance contract
  • Employees who are covered by the Federal Employers’ Liability Act, the Longshore and Harbor Workers’ Compensation Act or the Jones Act
  • The crew of an airplane working in crop dusting or spraying operations
  • Any person performing work related to the exploration, development, production or transportation of minerals (oil and gas workers)
  • Employees of railroads or other forms of transportation in interstate or foreign commerce

CONSTRUCTION EMPLOYERS:

  One or more employees

ALL EMPLOYERS:

One or more employees

AGRICULTURAL EMPLOYERS:

  One or more employees

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Where can you purchase Louisiana workers' compensation insurance?

Employers can purchase Louisiana workers’ compensation insurance from private insurance companies, or they can self-insure. Louisiana has a competitive — or private — workers’ compensation insurance market. This means that employers can purchase it from any private insurance company that is authorized to operate in the state.

Because Louisiana has a large number of workers in high-risk occupations, the state created the Louisiana Workers’ Compensation Corporation (LWCC) in 1992. It is a private, nonprofit insurance company and the largest workers’ compensation carrier in the state. It provides workman's comp insurance to businesses in high-risk industries where private insurers may not be willing to provide coverage.

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What will workers' compensation insurance pay for in Louisiana?

MEDICAL BILLS

EXAMPLE: A waiter suffers severe burns and needs to be taken to the hospital.

WAGE REPLACEMENT


EXAMPLE: An employee needs to miss three days of work to recover from a back injury that happened on the factory floor.

DEATH BENEFIT

EXAMPLE: A coal miner's family receives benefits after a work-related accident.

Louisiana workman's comp benefits include medical care for an injury, wage replacement, rehabilitation services and death benefits. 

The law covers both mental and physical injuries from accidents or occupational disease. The event causing the injury must arise out of and be within the scope of employment regardless of who is at fault.

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How is workers' compensation calculated in Louisiana?

Information Needed First:

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Classification Code: The National Council on Compensation Insurance (NCCI) assigns a risk classification code to every occupation in the state. Each classification code represents employers with similar exposures. The codes are used to classify workers’ compensation rates, based on the loss experience of employers within each code. 

In the example below, you can see that masons in Louisiana use the classification code 5022.

EXAMPLE  :  Mason = 2051

Base Rate: Each classification code is assigned a specific dollar amount — or base rate — that is determined by how hazardous the occupation is for workers. The base rate is used to determine an individual employer’s full workers’ compensation premium. Base rates are revised each year. 

In the example below, we use the base rate $4.75 for a mason in Louisiana. 

EXAMPLE  :  Mason = 4.75%

Calculation:

BASE RATE % x (PAYROLL/100)

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EXAMPLE:

STEP 1

$100,000 Payroll / $100 = 1,000

STEP 2

1,000 X 4.75 (base rate) = 4,750  

ESTIMATED WORKERS' COMP PREMIUM:

$4,750.00

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How do experience modifiers affect Louisiana workers' comp rates?

Employers with an annual premium greater than a certain amount are usually eligible for experience rating, which adjusts the workers’ compensation premium up or down, depending on the employer’s claims history. 

In these cases, an experience modifier, or experience mod, is added to the premium calculation formula described above. To determine the mod, the employer’s actual losses are compared with the expected losses for its industry (carpenters are compared with carpenters, plumbers are compared with plumbers, etc.). 

The employer’s workers' comp premium will increase or decrease, depending on the mod. 

AVERAGE MOD

1.0 = Does Not Impact Premium

DEBIT MOD


Greater Than 1.0 = Premiums Go Up

CREDIT MOD

Less Than 1.0 = Premiums Go Down

Employers will receive an experience modification factor when they have:

$10,000 in policy premium generated during the last year or last two years

$5,000 average policy premium generated for more than two years

If workers’ compensation policy is experience-rated, your premiums are determined by:

BASE RATE x PAYROLL x MOD

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Find Workers’ Compensation Insurance in Your City

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New Orleans
Baton Rouge
Lafayette
Lake Charles

Kenner
Houma
New Iberia
Slidell

Central
Sulphur
Hammond
Gretna

Thibodaux
Crowley
Baker
Mandeville

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New Orleans

simple divider The Top Three Hazardous Industries in New Orleans

New Orleans is home to numerous hazardous industries, including health care, construction and air transportation. Health care workers are in close contact with sick and even dangerous patients every day. Construction workers use dangerous machines and tools and are also at risk for falls and other types of injuries. Air transport pilots or flight engineers may be involved in crashes that lead to serious injuries or fatalities. 

High-risk employers typically have higher workers’ compensation premiums than those in less hazardous industries. Employers in these and all other industries need to find ways to keep employee injuries and workers’ compensation costs under control. The best way to reduce the number of workers’ compensation claims for your business is to provide a safe and healthful workplace.

1 | Health Care

2 | Construction

3 | Air Transportation

An independent Trusted Choice® insurance agent can help you find workers’ compensation insurance for your New Orleans business. An agent who is licensed to sell workers’ compensation insurance in Louisiana can help you find the best coverage for your industry and can help you assess and implement safety and risk management programs that help to keep your workers’ compensation costs under control. 

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Baton Rouge

simple divider The Top Three Hazardous Industries in Baton Rouge

Several hazardous industries are prevalent in Baton Rouge. Health care, construction, and chemicals manufacturing are among the top industries in the city, and all are considered to be hazardous for workers. Health care workers are in close contact with sick and even dangerous patients every day. Construction workers use dangerous machines and tools and are also at risk for falls and other types of injuries. Employees of chemicals manufacturers may suffer eye injuries, lung irritation, burns and other types of illnesses or injuries caused by contact with caustic or toxic materials. 

High-risk employers typically have higher workers’ compensation premiums than those in less hazardous industries. The best way to reduce the number of workers’ compensation claims for your business is to provide a safe and healthful workplace.  

1 | Health Care

2 | Construction

3 | Chemicals

Purchasing workers’ compensation is complicated for most employers, with many complex variables. If you would like to purchase workers’ compensation insurance for your Baton Rouge business, contact an independent Trusted Choice member agent who is licensed to sell workers’ compensation insurance in Louisiana. A local agent can help you find the best coverage for your industry and can help you assess and implement safety and risk management programs that help to keep your workers’ compensation costs under control. 

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Lafayette

simple divider The Top Three Hazardous Industries in Lafayette

Lafayette’s most hazardous industries include health care; construction; and mining, quarrying, and oil and gas extraction. Health care workers are at risk for contracting serious illnesses as well as repetitive motion and back injuries. Construction workers may fall from heights that result in serious injury or even death, and these workers use dangerous machines and tools every day. Mining workers and oil and gas workers face extreme dangers. They use dangerous equipment daily and are at risk of experiencing explosions, fires and a variety of other hazards. 

High-risk employers typically have higher workers’ compensation premiums than those in less hazardous industries. Employers can control workers’ compensation costs by emphasizing safety and providing clear and effective safety guidelines for every job. You can reduce work-related illnesses and injuries by providing a safe and healthful workplace for all employees. 

1 | Health Care

2 | Mining, Quarrying, and Oil and Gas Extraction

3 | Construction

If you would like to learn more about Louisiana workers’ compensation laws and obtain coverage for your Lafayette business, contact an independent Trusted Choice insurance agent who is licensed to sell workers’ compensation insurance in Louisiana. An independent agent can help you find the best coverage for your industry and can help you assess and implement safety and risk management programs that help to keep your workers’ compensation costs under control. 

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Lake Charles

simple divider The Top Three Hazardous Industries in Lake Charles

Lake Charles is home to numerous hazardous industries, including health care, construction and waste management services. Health care workers are at risk for contracting serious illnesses as well as less serious injuries. Construction workers face numerous dangers from equipment and tools and from working at heights and other dangerous locations. Waste management workers are exposed to dangerous equipment and materials as well as traffic dangers. You can reduce work-related illnesses and injuries and keep workers’ compensation costs under control by providing a safe and healthful workplace for all employees.  

1 | Health Care

2 | Construction

3 | Waste Management Services

Remember, this article offers only highly simplified examples and calculations of typical workers’ compensation premiums. If you want to purchase workers’ compensation for your Lake Charles business, enlist the help of a trusted adviser. To learn more about Louisiana’s workers’ compensation laws and obtain coverage, contact an experienced Trusted Choice Independent Insurance Agent. Your agent can help you find the best coverage for your industry and can help you assess and implement safety and risk management programs that help to keep your workers’ compensation costs under control. 

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Kenner

simple divider The Top Three Hazardous Industries in Kenner

The most hazardous industries in Kenner include health care, construction and waste management services. Employees who work in these industries are exposed to a variety of dangers, from contracting serious illnesses to working with dangerous machinery and materials. Injuries and even fatalities are more common in these high-risk industries. High-risk employers typically have higher workers’ compensation premiums than those in less hazardous industries.  

1 | Health Care

2 | Construction

3 | Waste Management Services

Need workers’ compensation insurance in Kenner? A Trusted Choice insurance agent can help you find the right carrier and coverage for your needs and can help you comply with state regulations. Your agent can also help you evaluate your risk management techniques and find new programs and solutions to keep your workers’ compensation insurance costs down over the long term.

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Houma

simple divider The Top Three Hazardous Industries in Houma

Houma’s most hazardous industries include health care; mining, quarrying, and oil and gas extraction; and construction. Employees who work in these industries are exposed to a variety of dangers, from contracting serious illnesses to working with dangerous machinery and materials. Serious falls, structure collapses, explosions and fires are among the dangers for miners and oil and gas workers.  

1 | Health Care

2 | Mining, Quarrying, and Oil and Gas Exploration

3 | Construction

Looking for workers’ compensation insurance in Houma? You need the help of a trusted adviser, like an independent Trusted Choice insurance agent. 

While the examples in this article are simplified, Louisiana workers’ compensation insurance is quite complex. A Trusted Choice agent can help you learn more about Louisiana’s workers’ compensation laws to make sure you purchase the right policy to protect your business and your employees. And an independent agent can help you get quotes from multiple insurance companies so you can be sure you are getting the best rates.

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New Iberia

simple divider The Top Three Hazardous Industries in New Iberia

Health care; mining, quarrying, and oil and gas extraction; and construction are among the most hazardous industries in New Iberia. Employees who work in these industries are exposed to a variety of dangers, from contracting serious illnesses to working with dangerous machinery and materials. Serious falls, structure collapses, explosions and fires are among the dangers for miners and oil and gas workers.  

1 | Mining, Quarrying, and Oil and Gas Exploration

2 | Health Care

3 | Construction

Employers in New Iberia can obtain quotes and learn more about Louisiana’s workers’ compensation requirements by working with an experienced independent Trusted Choice agent. The examples provided here are highly simplified illustrations of very complex rules, regulations and pricing models. 

A local Trusted Choice member agent can help you purchase a Louisiana workers’ compensation policy that protects your employees and your business from the costs of workplace injuries and illnesses.

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Slidell

simple divider The Top Three Hazardous Industries in Slidell

Slidell is home to several high-hazard industries, including health care; construction; and transportation and couriers. Health care employees are exposed to serious illnesses and potentially dangerous patients. Construction workers use dangerous materials and equipment and are at risk for falls and other serious accidents. Transportation workers may be involved in motor vehicle accidents and other traffic-related incidents that can cause injuries or fatalities. 

High-risk employers typically have higher workers’ compensation premiums than those in less hazardous industries. While you have workers’ compensation insurance to protect yourself and your employees in the event of a work-related injury or illness, implementing proper safety and risk management techniques is the best way to keep everyone healthy and happy.

1 | Health Care

2 | Construction

3 | Transportation and Couriers

Purchasing Louisiana workers’ compensation is complex and requires the help of a trusted adviser. We have provided only simplified examples and calculations in this article. 

To make sure you purchase the right policy for your Slidell business and your employees, seek help from a Trusted Choice member insurance agent, who can help you learn more about Louisiana’s workers’ compensation laws. An independent agent can help you get quotes from multiple insurance companies so you can be sure you are making the right choice.

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Central

simple divider The Top Three Hazardous Industries in Central

The most hazardous industries in Central include manufacturing; construction; and transportation and warehousing. Construction workers use dangerous materials and equipment and are at risk for falls, injuries and fatalities. Transportation workers may be involved in motor vehicle accidents and other traffic-related incidents that can cause injuries or fatalities. Workers in manufacturing environments use heavy equipment and materials and may be exposed to heat, chemicals and fumes. 

While you have workers’ compensation insurance to protect yourself and your employees in the event of a work-related injury or illness, implementing proper safety and risk management techniques is the best way to keep everyone healthy and happy.  

1 | Manufacturing

2 | Construction

3 | Transportation and Warehousing

Remember, this article offers only highly simplified examples and calculations of typical Louisiana workers’ compensation premiums. Employers in Central have a lot of options for workers’ compensation insurance. An independent insurance agent who understands your business and the Louisiana workers’ compensation laws can help guide you. 

To learn more about Louisiana workers’ compensation and obtain coverage for your business, contact an experienced Trusted Choice Independent Insurance Agent. 

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Sulphur

simple divider The Top Three Hazardous Industries in Sulphur

The most hazardous industries in Sulphur include construction, health care and chemicals manufacturing. Health care workers are in close contact with sick and even dangerous patients every day. Construction workers use dangerous machines and tools and are also at risk for falls and other types of injuries. Employees of chemicals manufacturers may suffer eye injuries, lung irritation, burns and other types of illnesses or injuries caused by contact with caustic or toxic materials.  

Implementing proper safety and risk management techniques is the best way to reduce on-the-job injuries. Every employee should be involved in promoting a safe work environment and understand that safety is a top priority. 

1 | Health Care

2 | Construction

3 | Chemicals

This article provides highly simplified examples and calculations of very complex workers’ compensation coverage. Most Sulphur employers can obtain quotes and learn more about Louisiana’s workers’ compensation requirements by working with an experienced independent insurance agent.

A local Trusted Choice member agent can help guide you through the process of purchasing Louisiana workers’ compensation insurance so you get the coverage you need to protect your employees and your business. 

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Hammond

simple divider The Top Three Hazardous Industries in Hammond

Hammond is home to several high-hazard industries, including health care, construction and social assistance. Health care and social assistance workers are in close contact with sick and even dangerous patients every day. Social assistance workers may also travel regularly, placing them at a greater risk for motor vehicle accidents and other traffic-related incidents. Construction workers use dangerous machines and tools and are also at risk for falls and other types of injuries.  

Workers’ compensation insurance protects you and your employees from costs related to work-related injuries and illnesses. In order to minimize worker injuries and keep workers’ compensation costs down, employers must design and implement effective safety and risk management programs and make safety a top priority for all employees. 

1 | Heath Care

2 | Construction

3 | Social Assistance

Looking for workers’ compensation insurance in Hammond? Louisiana workman's comp insurance is very complex and is governed by a set of very specific rules and regulations. We have offered a variety of highly simplified examples. To learn more about Louisiana workers’ compensation insurance and obtain quotes, you need an experienced and knowledgeable independent insurance agent. 

A Trusted Choice member agent can help you understand Louisiana’s workers’ compensation laws and will help you get the coverage you need to protect your employees and your business. 

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Gretna

simple divider The Top Three Hazardous Industries in Gretna

Health care; waste management; and transportation and couriers are among the most hazardous industries in Gretna. Health care employees are exposed to serious illnesses and potentially dangerous patients. Construction workers use dangerous materials and equipment and are at risk for falls and other serious accidents. Transportation workers are often involved in motor vehicle accidents and other traffic-related incidents that can cause injuries or fatalities.

1 | Heath Care

2 | Waste Management

3 | Transportation and Couriers

If you would like to learn more about Louisiana workers’ compensation laws and obtain coverage for your Gretna business, contact an independent Trusted Choice insurance agent, who is licensed to sell workers’ compensation insurance in Louisiana. An independent agent can help you find the best coverage for your industry and can help you assess and implement safety and risk management programs that help to keep your workers’ compensation costs under control.

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Thibodaux

simple divider The Top Three Hazardous Industries in Thibodaux

The most hazardous industries in Thibodaux include health care; construction; and mining, quarrying, and oil and gas extraction. Health care workers are at risk for contracting serious illnesses as well as less serious injuries. Construction workers risk falls and injuries from dangerous equipment and materials. Mining workers and oil and gas workers face extreme dangers as they work at heights or in small, cramped and dark spaces. They use dangerous equipment daily and are at risk of explosions, fire and a variety of other hazards.  

1 | Health Care

2 | Construction

3 | Mining, Quarrying, and Oil and Gas Exploration

Remember, this article offers only highly simplified examples and calculations of typical workers’ compensation premiums. Purchasing workers’ compensation is complex, and most employers will enlist the help of a trusted adviser. To learn more about Louisiana’s workers’ compensation laws and obtain coverage for your Thibodaux business, contact an experienced Trusted Choice Independent Insurance Agent. Your agent can help you find the best coverage for your industry and can help you assess and implement safety and risk management programs that help to keep your workers’ compensation costs under control. 

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Crowley

simple divider The Top Three Hazardous Industries in Crowley

The most hazardous industries in Crowley include health care; construction; and mining, quarrying, and oil and gas extraction. Workers in these industries face illness, injury and even death from dangerous working conditions. From contracting a serious illness to falling from a platform or scaffolding, these employees must take great care to stay safe at work.  

1 | Health Care

2 | Mining, Quarrying, and Oil and Gas Exploration

3 | Construction

Remember, this article offers only highly simplified examples and calculations of typical workers’ compensation premiums. Purchasing workers’ compensation is complex, and most employers will enlist the help of a trusted adviser. To learn more about Louisiana’s workers’ compensation laws and obtain coverage for your Crowley business, contact an experienced Trusted Choice Independent Insurance Agent. Your agent can help you find the best coverage for your industry and can help you assess and implement safety and risk management programs that help to keep your workers’ compensation costs under control. 

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Baker

simple divider The Top Three Hazardous Industries in Baker

The most hazardous industries in Baker include health care, construction and chemicals. These industries are more dangerous for employees because they are exposed to numerous risks, from dangerous equipment and materials to falls, serious illnesses, burns and lung irritation.  

1 | Health Care

2 | Mining, Quarrying, and Oil and Gas Exploration

3 | Construction

Purchasing workers’ compensation, with its many complex variables, can be a struggle for most employers. If you would like to purchase workers’ compensation insurance for your Baker business, contact an independent Trusted Choice member agent, who is licensed to sell workers’ compensation insurance in Louisiana. A local agent can help you find the best coverage for your industry and can help you assess and implement safety and risk management programs that help to keep your workers’ compensation costs under control. 

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Mandeville

simple divider The Top Three Hazardous Industries in Mandeville

Health care, construction and waste management services are among the most hazardous industries in Mandeville. Employees who work in these industries are exposed to a variety of dangers, from contracting serious illnesses to working with dangerous machinery and materials. Injuries and even fatalities are more common in these high-risk industries.

1 | Health Care

2 | Construction

3 | Waste Management Services

Need workers’ compensation insurance in Mandeville? A Trusted Choice insurance agent can help you find the right carrier and coverage for your needs and can help you comply with state regulations. Your agent can also help you evaluate your risk management techniques and find new programs and solutions to keep your workers’ compensation insurance costs down over the long term.

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