If you are doing business in Alabama, you are required to carry workers’ compensation insurance if – you have five (5) or more employees, full-time or part-time, working in Alabama.  This includes officers of a corporation or members of a Limited Liability Company (LLC).

If, however, you employ fewer, then you are NOT required to carry the coverage.  However, there are exceptions.  If you are engaged in the business of constructing or assisting on-site in the construction of new single-family residential dwellings, then you ARE required to carry Workers’ Compensation Insurance under Alabama state law – even if you have fewer than five employees.

Also, if you are working for someone else as an “independent contractor” you will need workers’ compensation insurance.  Unless you are an employee of their business, you won’t be covered by their insurance policy and may need to provide proof of workers’ compensation insurance.

Are you an employee or an independent contractor?  Excellent Question.  Let’s get an idea.  (link)

Workers’ compensation insurance covers wage replacement and medical bills for employees injured on the job. To protect against other injuries at your place of business, you may need commercial general liability insurance.

Alabama has a private market for workers’ compensation coverage, meaning that you can purchase workers’ compensation insurance from any private insurance carrier or agency that is licensed to write in that state.  Harman Stone can write workers’ compensation insurance in any U.S. state in which we are licensed – currently Alabama, Arkansas, Kentucky, Maryland, Mississippi, Tennessee, Virginia and the District of Columbia.

If having trouble, Alabama also has an assigned risk pool, where we can help you find coverage.

If you are a sole proprietor or a partner in Alabama, you are excluded from your business’ workers’ compensation insurance but have the option to include yourself.

If you are a corporate officer or member of an LLC in Alabama, you are included in your business’ workers’ compensation coverage, but you have the option to exclude yourself.