Small Businesses Workers’ Comp Insurance in Georgia

More often than not, small businesses in Georgia need Workers’ Compensation. There are several exemptions that might apply to your small business, depending on the type of company it is.

Depending on the industry your small business is in, it may benefit from a certain type of Workers’ Compensation insurance: pay-as-you-go coverage. Small businesses with upwards of two employees will need some kind of Workers’ Compensation in Georgia, meaning most small businesses require coverage. There are some exemptions that small businesses in Georgia might be eligible for, like exemptions for partners, sole proprietors, LLC members, and corporate officers. Although your small business might be able to self-insure, there is more security in getting Workers’ Compensation from a reliable insurance company in Georgia.

Call NPN Brokers at (866) 340-9120 and speak with our Georgia Workers’ Compensation insurance brokers about getting coverage for your small business today.

Types of Workers’ Comp Insurance Policies for Small Businesses in Georgia

For many small businesses in Georgia, saving money on Workers’ Compensation insurance is a top priority. This is possible by choosing the right type of policy for your smaller company.

A pay-as-you-go plan is one of the most flexible and affordable kinds of Workers’ Compensation policies available to small businesses in Georgia. Our Workers’ Compensation insurance brokers can explain the benefits of this type of policy and how it can help your small business save on premiums. Pay-as-you-go Workers’ Compensation uses current payroll information to assess premiums rather than annual payroll estimates.

This enables small businesses in Georgia to only pay for Workers’ Compensation coverage for employees currently working for them. Many small businesses, like coffee shops and boutiques, see frequent changes in their payroll numbers throughout the year. With pay-as-you-go Workers’ Compensation plans, you can base premiums on real-time information, allowing you to more easily cut down on spending and adhere to your budget.

Determining the Workers’ Comp Liability for Your Georgia Small Business

Small businesses are classified as such based on their revenue and their payroll. For Workers’ Compensation purposes, small businesses may or may not need coverage based on employment.

Any business that employs fewer than 1,500 workers might be considered small in Georgia. Because of this, only the smallest of small businesses can go without Workers’ Compensation and stay in compliance with Georgia statutes. Only companies with more than two employees need Workers’ Compensation in the state. This means that most small businesses must purchase and maintain a policy to stay in accordance with Georgia’s requirements and avoid consequences for non-compliance.

Very small businesses, meaning those with fewer than three employees, do not need Workers’ Compensation in Georgia. While some states require companies in certain industries to get coverage regardless of their size, Georgia does not.

Most small businesses in Georgia will need Workers’ Compensation. If you do not get it when required, you might face expensive financial penalties from the Georgia State Board of Workers’ Compensation.

Workers’ Comp Insurance Exemptions for Small Businesses in Georgia

Small businesses in Georgia may be able to benefit from certain Workers’ Compensation exemptions. Depending on their business formation, some small business owners might be automatically exempt from coverage.

Sole Proprietors

Sole proprietors are automatically excluded from needing Workers’ Compensation in Georgia. Some small businesses start out as sole proprietorships because they are one of the easiest types of companies to form. You may need coverage for other employees if you have a sole proprietorship and employ additional workers. Because there is no legal distinction between sole proprietors and sole proprietorships in Georgia, it benefits owners of these small businesses to get Workers’ Compensation. Otherwise, they may be personally liable for covering employee injuries sustained at work. While sole proprietors are automatically exempt from Workers’ Compensation, they can opt into the system and get coverage for themselves.

Partners

Like sole proprietors, partnership partners are automatically exempt from the Workers’ Compensation system in Georgia. They do not need to get coverage for themselves and will not face fines for choosing that route. However, partnerships that employ workers in addition to partners may need to purchase a Workers’ Compensation policy in Georgia. Also, like sole proprietors, partners can elect to get Workers’ Compensation despite being initially excluded from the system.

LLC Members and Corporate Officers

Some small business owners have LLCs or corporations. Georgia allows up to five corporate officers or LLC members to exclude themselves from coverage. In doing so, LLC members or corporate officers of small businesses can lower their payroll information for Workers’ Compensation purposes and save on monthly premiums. There is a risk to excluding yourself from coverage in Georgia, as doing so makes you ineligible for benefits if hurt on the job.

Ways to Get Workers’ Comp Insurance Coverage for Small Businesses in Georgia

In most cases, small businesses in Georgia should get Workers’ Compensation from an insurance carrier. While self-insuring might be an option, it also might leave small businesses in difficult financial situations after an employee injury.

Small businesses can get Workers’ Compensation from a reliable carrier in Georgia. Our brokers can find a policy that does not require expensive deposits, audits, or contracts and provides you with comprehensive coverage for all of the employees within your small business. The alternative to going with an insurance company is self-insuring.

Provided they can prove they are financially secure enough to handle costs stemming from a workplace accident, small businesses in Georgia can self-insure for Workers’ Compensation. Even for large businesses, self-insuring is risky, especially if serious and debilitating workplace accidents occur. Because of this, getting Workers’ Compensation insurance from a carrier may be the best path to take for small businesses in Georgia.

Get Workers’ Comp in Georgia for Your Small Business Today

Call NPN Brokers at (866) 340-9120 and get a policy quote from our Workers’ Compensation insurance brokers today.