Jump ahead to learn:
- Is Wisconsin Workers’ Compensation insurance required?
- How does Wisconsin Workers’ Compensation work?
- Workers’ Compensation coverage benefits in Wisconsin
- Wisconsin Workers’ Comp death benefits
- What are Wisconsin Workers’ Compensation insurance rates?
- What if you don’t have Workers’ Compensation insurance in Wisconsin?
- Who is exempt from Wisconsin Workers’ Comp laws?
- How NEXT helps Wisconsin small business owners
Is Wisconsin Workers’ Compensation insurance required?
Yes, in the state of Wisconsin, most employers must carry workers’ compensation insurance unless they are self-insured or qualify for exemption. According to state laws, you must have Wisconsin workers’ comp if your business:
- Employs three or more full-time or part-time employees.
- Employs one or more full-time or part-time employees who earn $500 or more in any calendar quarter.
- Is a farm that employs six or more workers on the same day for any 20 days during the calendar year.
- Operates out-of-state, but has employees working in Wisconsin.
Sole proprietors, partners, and limited liability company (LLC) members are generally exempt but can choose to purchase coverage. “Employee” includes full-time, part-time, family members and minors.
How does Wisconsin Workers’ Compensation work?
In Wisconsin, a workers’ compensation program helps provide benefits to employees injured or made ill on the job.
It can help cover:
- Medical expenses
- Lost wages
- Rehabilitation and physical therapy
- Retraining if you can no longer do your job
- Permanent injury
- Death benefits and survivor benefits
The system is no-fault, meaning employees don’t have to prove negligence to receive benefits. Generally, the benefits are an “exclusive remedy” for the injured employee — employees receive compensation faster, and employers are protected from employee injury lawsuits.
The Wisconsin Department of Workforce Development (DWD) Division of Worker’s Compensation is responsible for administrating and regulating the state’s workers’ comp laws.
The state does not provide workers’ compensation coverage. Employers can get insured through an insurance agent or purchase online via workers’ compensation insurance companies in Wisconsin.
If you hold a workers’ comp policy with NEXT, we strive to resolve every claim quickly. Learn more about our claims process and how our claims advocates will work with you after an employee’s work-related illness or injury.
Workers’ Compensation coverage benefits in Wisconsin
Workers who are injured or become ill due to job-related tasks may be eligible for the following workers’ compensation benefits:
- Medical benefits: Coverage of all reasonable and necessary medical expenses.
- Temporary partial disability (TPD )and temporary total disability (TTD) benefits: Two-thirds of an employee’s earnings, subject to a weekly maximum, are paid to the injured worker until they recover from the work-related injuries and return to work.
- Permanent total benefits: Injured workers who are 100% disabled due to a work-related injury are entitled to receive two-thirds of their earnings subject to a weekly maximum amount for the remainder of their lives.
- Permanent partial benefits: After the healing period has ended, workers who sustain permanent partial disability receive additional compensation of two-thirds of their earnings, subject to a weekly maximum and date of injury, for a specified number of weeks depending on the disability.
- Vocational rehabilitation: The cost of rehabilitation is fully covered, and the injured worker is entitled to weekly indemnity payments during the rehabilitation period.
Wisconsin Workers’ Comp death benefits
If an employee dies from a workplace injury or disease, their dependents may be eligible for death benefits. Benefits include a payment capped at four times the worker’s average annual earnings.
Dependents are typically a surviving spouse or registered domestic partner and children under 18 (or older if disabled). If no spouse or dependent children exist, other dependent relatives may qualify. The spouse/partner usually receives the full death benefit, with additional amounts potentially for children.
The employer or insurance carrier must also pay up to $10,000 for funeral expenses.
What are Wisconsin Workers’ Compensation insurance rates?
Workers’ compensation costs vary across industries. Factors that can influence your annual or monthly price include:
- Your number of employees and the type of work they do.
- Your total payroll.
- Your insurance claims history.
- The location(s) where you do business.
You can use our workers’ compensation cost calculator to get an idea of pricing for a business like yours. But the best way to see exactly what you’ll pay for your business is to get a free instant quote from NEXT.
What if you don’t have Workers’ Compensation insurance in Wisconsin?
Employers without coverage could be assessed a penalty of double the insurance premiums they should have been paying during the uninsured period, or $750, whichever is greater. They also may be subject to a penalty of $100 per day for up to seven days.
The DWD could also order that your business be closed. If an employee of an uninsured business is injured, the business owner may also be held personally liable for workers’ compensation claim benefits paid to injured employees.
Who is exempt from Wisconsin Workers’ Comp laws?
Even though almost all private and public employees are considered employees covered by the Workers’ Compensation Act of Wisconsin, there are some exceptions.
The following workers are not considered employees (not exhaustive):
- Domestic servants.
- Any person whose employment is not in the trade, business, profession or occupation of the employer.
- Some relatives of farmers.
- Sole proprietors, partners and members of LLCs.
- Qualified and certified members of certain religious sects.
- Some volunteers of non-profit organizations.
- Employees of Native American tribal enterprises, including casinos.
- Some real estate brokers, agents and salespersons.
To know if you qualify for exemption, review Wisconsin’s workers’ compensation laws or consult with a legal professional.
How NEXT helps Wisconsin small business owners
NEXT can give you a free workers’ comp coverage quote in about 10 minutes. Buy affordable coverage online and instantly share a certificate of insurance (proof of insurance) at no extra cost.
You can manage your policy 24/7 via web or mobile app.
And if you have questions, our licensed, U.S.-based insurance professionals are available to help.
