Connecticut (CT) Workers’ Compensation

• Is Connecticut (CT) Workers’ Compensation insurance required?
• How does Workers’ Comp work?
• How much is Connecticut Workers’ Compensation?
• Who is exempt from Connecticut Workers’ Compensation insurance?
• How NEXT helps Connecticut small business owners

Is Connecticut (CT) Workers’ Compensation insurance required?

All Connecticut businesses, including corporations, LLCs, partnerships, firms or any other type of business with one or more employees, are required by state law to have workers’ compensation insurance.

Both part-time and full-time workers must be covered by the policy. Employers must also carry workers’ comp insurance for any contractors or subcontractors they hire.¹

These regulations are overseen by the Connecticut Workers’ Compensation Commission, which helps to assure that any employees injured at work receive prompt payment for medical expenses and lost wages.

If you’re an employer in Connecticut, workers’ compensation protects your business financially if one of your employees is hurt on the job. It’s also beneficial when working with clients since some may require proof of coverage before signing a contract to work with you.

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How does Workers’ Comp work?

Workers’ comp can save a business from potentially large financial losses after an employee injury or illness. After a work-related injury, Connecticut small business owners can generally expect for their employees to be covered for:

• Medical and surgical aid
• Hospital and nursing services
• Medical rehabilitation services

Employers who are required to have workers’ comp insurance must post a notice in the workplace that informs employees of the availability of compensation.⁵ The notice must be posted in a conspicuous location and feature the following information:

• The name, location and contact information for the insurance company.
• The location and contact information for the nearest Connecticut Workers’ Compensation Commission office.

Additionally, let your employees know that they must report any work-related injury or illness to the Connecticut Workers’ Compensation Commission office in a timely manner immediately. If they suffer a medical emergency that prohibits them from making an immediate report, you or their supervisor can make a report directly.³

Workers’ Comp income benefits in Connecticut

In addition to medical treatment coverage, workers’ compensation insurance can provide workers with coverage for lost earnings and temporary or permanent disability, also called wage-loss and indemnity benefits. These benefits are categorized as follows:

• Temporary total disability: When an employee is out for more than three calendar days.

• Permanent total disability: When a work injury results in a total incapacity to work.

• Temporary partial disability: When an employee is able to return to work at less than their pre-injury wages.

• Permanent partial disability: When an employee sustains permanent loss of a body part or function.

• Discretionary wage differential: May apply after permanent partial disability benefits have ended if the employee continues to earn less due to their disability.

• Disfigurement and scarring: May apply if the employee sustains permanent and significant scars in a location that affects employability (such as head, face or neck).

If an employee dies due to work-related injury or illness, the surviving spouse or eligible dependent may receive death benefits based on the employee’s average weekly wage. In some cases, burial benefits may also be included.⁴

Penalties for not having Workers’ Comp insurance in Connecticut

Any Connecticut business that fails to obtain the required workers’ compensation insurance is subject to penalty fees of $100 per day.

Failure to comply in extreme cases could lead to class D felony charges. Additional penalties may be imposed for delay in compensation.¹

Learn more about workers’ compensation coverage.

How much is Connecticut Workers’ Compensation?

Workers’ compensation costs vary across industries. Factors that influence price include:

• The number of employees and the type of work they do.
• Your total payroll.
• Your insurance claims history.
• The locations where you do business.

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Who is exempt from Connecticut Workers’ Compensation insurance?

Some groups are excluded from the mandate to carry CT workers’ compensation insurance.

One key exception in CT workers’ compensation law applies to household employees. Employers are only required to have workers’ comp coverage for a household or live-in employee if they work 26 or more hours a week.²

Partnerships with one or more employees must comply with the law to cover their workers. However, the partners themselves may choose to be excluded from coverage as long as they notify the Connecticut Workers’ Compensation Commission in writing.

Sole proprietors are exempt from the requirements for workman’s comp in CT. Any workers they employ must be covered, but coverage for themselves is optional.

While workers’ comp might not be required for your small business, it’s important to consider the financial risks.

Let’s say you own a cleaning business and you get injured on the job. If a back injury keeps you out of work for several weeks, workers’ compensation insurance could help cover your loss of income as well as the medical expenses.

Self-insurance for Connecticut Workers’ Compensation

Some employers prefer to self-insure their workers’ compensation liabilities instead of purchasing a workers’ compensation insurance policy.

These employers may apply to the Connecticut Workers’ Compensation Commission for permission to self-insure. If their application is approved, the business will receive a certificate of self-insurance from the commission.

How NEXT helps Connecticut small business owners

NEXT offers an easy way to get a free workers’ compensation insurance quote, purchase coverage and instantly share a certificate of insurance in about 10 minutes.

NEXT strives to resolve every claim quickly. Learn more about our claims process and how our claims advocates will work with you after an employee injury.

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• What to do when an employee is injured at work
• Does a sole proprietor need Workers’ Compensation insurance?
• How to file a Workers’ Comp claim
• What is a Workers’ Compensation audit?
• How Does a Workers’ Comp Claim Affect the Employer?
• What is a monopolistic state for Workers’ Comp?
• What is a Workers’ Comp exemption?

¹ CT Workers’ Compensation Regulations

² Employment Law for Household and Live-In Help

³ Workers’ Compensation Rights, Responsibilities and Claims

⁴ Various Workers’ Compensation Questions

⁵ Communicating Claim Reporting Responsibilities