Almost every state requires that businesses carry workers’ compensation insurance. This is why having a certificate of workers’ compensation on hand is critically important. A business might need it for a workers’ comp audit, or for securing contract work or deals. Regardless, every business owner should be able to prove that they are carrying workers’ comp insurance.
Check out our coverage details and benefits for CompSource Mutual policy holders and injured workers.
A certificate of workers’ compensation is a document that is specific to a policyholder’s plan. It proves that that particular business or entity has an active, up-to-date workers’ compensation plan.
Having a certification of coverage for workers’ comp on hand is important when landing business deals and interacting with potential clients. In fact, some clients may only do business with companies that have a certificate of workers’ compensation. This is to ensure that the company is able to keep its workers protected in the event anything should happen during the project.
Some situations in which a client might request to see a certificate of workers’ compensation:
Fortunately, obtaining a certificate of workers’ compensation is often fairly simple. The first step is to contact the insurance company by website, phone or email. An insurance representative can then usually email or mail the certificate to the employer. Additionally, some companies, like CompSource Mutual, have a customer portal that makes it especially easy to obtain a certificate of workers’ compensation.
For states that have state-administered workers’ compensation plans, companies may need to access their online account through the state’s website in order to obtain their certificate of coverage.
In general, workers’ compensation is required for most businesses, but every state has its own set of work compensation laws. Most states have some kind of employee requirement that determines whether a business must carry workers’ compensation insurance. In some states, having even one employee means that business must carry workers’ insurance. In other states, the minimum might be three, four, or five employees.
Kansas and Texas are a little different from the rest. Kansas has a payroll minimum: businesses that reach a payroll of $20,000 must carry workers’ comp insurance. And Texas does not require employers to carry workers’ compensation coverage at all.
Most states also give the option for business owners to purchase a private plan or self-insure. Businesses must qualify for self-insuring, since it can be a risky undertaking. Self-insuring means that the business owner must prove that they can financially handle paying out workers’ comp claims. Other states also give business owners the option of purchasing from a state-administered fund.
Keep in mind that, no matter the requirements or state policies, a certificate of workers’ compensation insurance should be issued to the policyholder if an active policy is in place.
CompSource Mutual aims to provide policyholders and injured workers with the best customer care experience in Oklahoma. CompSource Mutual has served Oklahoma businesses – large and small – for more than eight decades. Our expertise spans hundreds of industries – so our team knows how to get you coverage that makes sense at a fair price.
