Find the Best Workers' Compensation Insurance Options in Missouri

There are about 532,000 small business owners in Missouri. Each business in Missouri needs to consider having workers' compensation insurance to get reimbursement for lost wages and medical expenses if a worker gets injured or ill due to the job. Workers' comp is usually mandatory for most businesses in the US. In Missouri, workers' comp is mandatory for businesses with five or more employees, with only a few exceptions.

Luckily, an independent insurance agent in Missouri can help you find the right workers' comp for your business. They know exactly how much coverage to include in your policy based on your specific business. But for now, here's an overview of Missouri workers' comp requirements and more.

Missouri Workers' Compensation Laws

Missouri workers' compensation requirements can change depending on the industry, but most companies in Missouri with at least five employees must have workers' compensation insurance by state law. However, businesses without employees usually aren't required to carry coverage. This includes sole proprietors.

How Does Workers' Compensation Insurance Work in Missouri?

In Missouri, workers' compensation insurance offers benefit payouts for employees who get ill or injured due to the work environment or job tasks. Incidents can occur due to an unsafe job environment, repetitive work tasks, or the equipment and materials required on the job. Workers' comp can also replace a portion of wages when employees need to be out of work for treatment or recovery. Labs, prescription medications, and doctor or hospital visits can be covered.

With workers' comp as a part of a Missouri business insurance policy, your business is also exempt from employee lawsuits related to covered incidents. In turn, these affected employees' family members are also prevented from suing the business. Having workers' comp insurance in Missouri can protect your team and your business from potentially hefty financial losses.

Missouri Workers' Compensation Exemptions

There are some exemptions to Missouri workers' comp state law requirements to be aware of. Understand these exemptions in case your business doesn't need coverage. Missouri workers' comp exemptions include railroad, postal, and maritime employees because workers' comp is provided for them at the federal level. Still, there are more exemptions in Missouri, including:

  • Business partnership members
  • Direct sellers
  • Real estate agents
  • Unpaid volunteers for tax-exempt organizations 
  • Farm laborers
  • Domestic private home workers

A Missouri independent insurance agent can help determine if your business is required by state law to have workers' comp.

Do Independent Contractors Need Workers’ Comp Coverage?

Missouri state law requires businesses with five employees or more to have workers' comp. There are only a couple of exceptions to this rule. However, independent contractors are one of these exceptions.

In Missouri, independent contractors aren't legally required to be covered by workers' comp, but they can choose to participate in the business's workers' comp plan. If you work as an independent contractor in Missouri, you don't have to worry about workers' comp requirements or possible resulting penalties from not having coverage, but you can still choose to include yourself in this coverage.

Do Missouri Business Owners Need to Be Covered by Workers’ Compensation?

In Missouri, business owners who are sole proprietors, partners, or independent contractors don't need to be covered by workers' comp. If you're the sole business owner, are in a partnership, or don't have any employees, you don't need this coverage. However, you may still want to consider it, especially if your work is risky.

Having workers' comp coverage can help you save potentially thousands of dollars or even more. Just one workplace incident could result in costly medical treatment and time out of work. Without coverage, you could have to pay these costs out of your own pocket, which could financially harm you and your business.

What Does Missouri Workers' Compensation Cover?

Missouri workers' comp covers many potential costs related to employee injuries or illnesses. These can include doctor visits, hospital stays, medications, treatment, etc. Many potential costs could arise from a single incident that workers' comp can provide compensation for. This also includes partial wage replacement for an employee who has to miss work due to a covered incident.

In Missouri, workers' comp can also reimburse funeral costs if a serious incident results in an employee's death. This coverage also prevents employees who get injured or ill due to a covered incident from filing lawsuits against your business for the incident. What's more, family members related to these employees cannot press charges against the business either, as long as workers' comp coverage is available.

Here's a further breakdown of what workers' comp covers in Missouri:

  • Disability benefits: Workers' comp can help pay disability benefits, including temporary total disability benefits, permanent partial disability benefits, and permanent total disability benefits. If an employee qualifies for disability benefits due to a workplace incident, Missouri workers' comp can help cover these costs.
  • Death benefits: Workers' comp can also help pay death benefits for employees who die due to a covered incident. The death benefits are most often paid to an employee's surviving dependent family members or spouse.
  • Funeral costs: Workers' comp can even help cover funeral costs for deceased employees due to a covered incident. Reimbursement can apply to burial costs, coffins, and more.
  • Medical expenses: Workers' comp can help pay for medical expenses after covered incidents, including prescription medications. If an employee needs a prescription for chronic pain due to their job tasks, workers' comp can pay for it.
  • Time off during recovery: Workers' comp can help pay to replace some of an employee's wages while they take time off work to recover from a covered incident. If an employee needs to stay at the hospital for two weeks after surgery due to a workplace incident, workers' comp can help continue some of the wages they would've made during that time.
  • Ongoing care: Workers' comp can help pay for required ongoing care costs to continue treating a covered injury or illness. If a worker needs physical therapy due to a workplace injury, this coverage can help pay for that cost.

A Missouri independent insurance agent can help review your policy's coverage in full with you.

How Much Does Workers’ Compensation Insurance Cost in Missouri?

The average cost of workers' compensation insurance in Missouri is $64 per month or $768 per year. However, workers' comp insurance costs vary based on many factors. The number of employees a company has, and its annual payroll heavily influence the cost of a workers' comp policy for a business.

The location and industry of the business also impact its workers' comp costs. Because some industries come with higher levels of risk, including the construction and trucking industries, insurance companies charge more for workers' comp coverage. Additionally, a business's previous claims history and the limits applied to its coverage influence the cost of its workers' comp policy.

Workers' Compensation Insurance Stats

Healthcare $1,825 Per $100,000 payroll

Retail Trade $2,850 Per $100,000 payroll

Construction $7,430 Per $100,000 payroll

How Can Missouri Business Owners Save Money on Workers’ Comp?

Missouri business owners can save money on workers' comp in several ways. The "pay-as-you-go" payment option for workers' comp offers the benefit of a low upfront premium. It also offers the ability to buy coverage based on actual payroll rather than projected or estimated payroll, which can greatly reduce costs. Another way to save on coverage is to hire seasonal or casual employees.

Submitting proof to your insurer that your company completed a safety program can also help reduce the cost of your coverage. Insurance companies like to see that your company has taken measures to reduce the risk of workplace incidents. Requiring your employees to complete safety training is another way to possibly save money on workers' comp. 

What Are the Penalties for Not Having Workers' Comp in Missouri?

Businesses in Missouri that do not comply with state law for workers' comp can face harsh penalties like fines. Business owners can be charged with a misdemeanor if they fail to provide coverage for their workers. They can also face penalties of up to a maximum of $50,000, or three times the amount of workers' comp premiums they should have paid.

Missouri business owners will also be held responsible for medical expenses for affected employees that workers' comp should've covered. On a second offense, a Missouri business owner can be charged with a felony for not having workers' comp. Not having workers' comp makes a business vulnerable to many types of potentially huge financial losses.

How to Buy Workers' Compensation Insurance in Missouri

Business owners in Missouri have options for buying a workers' compensation policy. The first method is to buy coverage via the voluntary market. The business owner can also choose to self-insure their company, provided they qualify. Another method is for a business owner to purchase workers' comp directly online, which can be a fast and easy way to obtain coverage.

However, the easiest method of obtaining workers' comp in Missouri is by working with a local independent insurance agent. These agents can shop and compare policies from many different Missouri insurers. They'll get you matched to a policy with the best blend of coverage and cost.

Best Workers' Compensation Insurance Companies in Missouri

Workers' comp is sold by many insurance companies in Missouri. However, you want your business to have the best coverage. That's why we put together a list of some of the best options for workers' comp in Missouri. Get started by checking out these top-quality insurance companies.

  • Progressive: Progressive has been around for many decades and has an outstanding financial strength rating from AM Best. The carrier also offers 24/7/365 customer service.
  • Liberty Mutual: Liberty Mutual is a Fortune 500 company known for providing quality service and coverage. The carrier also has excellent AM Best and Better Business Bureau (BBB) ratings and provides 24/7 claims reporting.
  • Travelers: Travelers is another longstanding carrier with excellent customer feedback. Travelers is known for affordable rates, many discount and endorsement options, and great financial strength.
  • Nationwide: Nationwide is a longstanding carrier with an excellent reputation thanks to its outstanding BBB and AM Best ratings. The carrier also offers 24/7 claims support. 

A Missouri independent insurance agent can help you find the workers' comp your business needs from one of these outstanding carriers.

What Are the Best Workers' Compensation Companies in Missouri?

Top Workers' Compensation Insurance CompaniesStar Rating
5 star rating
Liberty Mutual
5 star rating
5 star rating
5 star rating

FAQs: Workers' Compensation in Missouri

Your Missouri business's workers' compensation policy covers incidents of injury or illness to employees. These incidents are covered if they're caused by the work environment, the tools or equipment used for the job, or job tasks. 

The average cost of workers' comp in Missouri is currently $64 per month. This cost can vary due to many factors, though, such as the number of employees your business has.

Yes. When you have five or more employees in Missouri, you are required to carry at least the minimum limits of liability under your workers' compensation policy. You may request higher limits, and most businesses do so for proper protection. You could face serious fines and other penalties if you're found without coverage.

Missouri workers' compensation insurance covers medical expenses and a portion of lost wages for an employee who gets injured or ill due to the job. Medications, doctor visits, etc., are covered by workers' comp.

As with any policy, exclusions apply. Under your Missouri workers' compensation insurance, the following instances are not covered:

  • Intentional injuries or illnesses
  • Injuries or illnesses sustained outside of work
  • Injuries or illnesses sustained while behaving negligently
  • Injuries or illnesses sustained under the influence of drugs or alcohol

In Missouri, you may be asked to provide proof of insurance to obtain a contract or work on a job site. This is known as a certificate of insurance, and it has your workers' compensation and other business policy limits listed, along with expiration dates and an agent signature. You can get a certificate from the insurance company you purchased coverage through or with the help of your independent insurance agent.

A Missouri independent insurance agent can help you find workers' compensation coverage for an affordable price. These agents are free to shop and compare policies and quotes from a number of different carriers. They'll get you matched to a policy that offers the best blend of coverage and cost.

No, workers' comp isn't taxable in Missouri. Workers' comp benefits are tax-free unless they're combined with Social Security Disability benefits.

The industries with the most fatal occupational injuries in Missouri include the construction industry, the transportation and warehousing industry, the manufacturing industry, the crop farming industry, and the landscaping industry.

These are the most commonly reported fatal occupational injuries in Missouri:

  1. Violence and other injuries by persons or animals
  2. Transportation incidents
  3. Fires or explosions
  4. Falls, slips, trips
  5. Exposure to harmful substances or environments
  6. Contact with objects and equipment
  7. Overexertion and bodily reaction

The statute of limitations for workers' comp in Missouri is two years. If an incident gets reported after this period is over, it may not have to be covered by workers' comp.

If you are a sole proprietor or an independent contractor, or are in a partnership that owns a business, you don't have to be covered by workers' comp in Missouri. Otherwise, if your business has five or more employees, you'll need to cover all these workers with a policy.'%20compensation,be%20subjected%20to%20income%20taxes.,are%20informed%20of%20their%20diagnosis.