How Do I Get a Workers’ Comp Exemption in Georgia?
In Georgia, some employers are immediately excluded from Workers’ Compensation, while others can file for an exemption from coverage if they wish. While there are benefits of getting an exemption, there are also risks.
Sole proprietors, partners, and farm labor employers have an automatic exemption from Workers’ Compensation in Georgia. Others, like LLC members and corporate officers, can elect to get an exemption from coverage. To exempt yourself, you must inform either your insurance carrier or the Georgia State Board of Workers’ Compensation by filing Form WC-10. While getting an exemption might slightly lower payroll numbers for Workers’ Compensation, it also means that exempt employees will not have access to Workers’ Compensation benefits if hurt on the job, which is a considerable, and often unnecessary, risk to take.
For more information about policies available to your business, call the Georgia small business workers’ compensation insurance brokers at NPN Brokers today at (866) 340-9120.
Who Automatically Gets a Workers’ Comp Exemption in Georgia?
Some people are automatically excluded from Georgia’s Workers’ Compensation system, meaning there’s no need for those individuals to file for an exemption from coverage. Automatically exempt people include sole proprietors, farm labor employers, and partners.
Sole proprietors and partners do not need to have Workers’ Compensation for themselves in Georgia. If these employers have additional workers, they may need coverage for those employees. However, sole proprietors and partners do not need to include themselves in a company Workers’ Compensation policy as they are automatically exempt.
Farm labor employers are also automatically exempt and do not need to file for an exemption in order not to get Workers’ Compensation insurance for their employees. Georgia is very specific about what constitutes a farm labor worker. The definition for these employees can be found in O.C.G.A. § 34-9-2(a)(1).
In addition to sole proprietors, partners, and farm labor employers, independent contractors are typically not covered by a temporary employer’s Workers’ Compensation policy. Our Georgia workers compensation insurance brokers for general contractors can help 1099 employees find a policy of their own if they are without coverage and want it.
Sole proprietors, partners, and farm laborers can elect to absolve their exemption from Workers’ Compensation and get insurance in Georgia. You can do this by filing Form WC-10 with the Georgia State Board of Workers’ Compensation.
Who Can Choose to Get a Workers’ Comp Exemption in Georgia?
In addition to providing automatic exemptions for some people in Georgia, the State Board of Workers’ Compensation also allows certain people to apply for an exemption from coverage.
Corporate officers and LLC members can file for an exemption from Workers’ Compensation in Georgia, provided they meet the necessary criteria. At the most, up to five corporate officers or LLC members from any one company can be exempt from coverage at the same time.
Georgia provides no other exemptions from Workers’ Compensation. This means all other employers, apart from those automatically excluded, must maintain coverage for themselves and their workers, provided they employ upwards of two employees. Georgia has no additional exemptions from Workers’ Compensation based on industry or payroll. Those ineligible for an exemption from coverage or who fail to get insurance may face several consequences from the State Board of Workers’ Compensation in Georgia.
How Can You Get a Workers’ Comp Exemption in Georgia?
In order to get a Workers’ Compensation exemption in Georgia, you must inform either your Workers’ Compensation insurance carrier or the State Board of Workers’ Compensation.
To file for an exemption from coverage, complete Form WC-10 and submit it to your insurance carrier or the State Board of Workers’ Compensation. You can also use the same form to revoke a previous exemption from Workers’ Compensation as an LLC member or corporate officer in Georgia.
It is best to inform both the Board of Workers’ Compensation and your insurance carrier to cover all of your bases. If you do not properly file Form WC-10, you will not be exempt from your company’s Workers’ Compensation policy in Georgia.
What Happens if You Get an Exemption from Workers’ Comp in Georgia?
If you choose to exempt yourself from your company’s Workers’ Compensation policy in Georgia, several things might happen. While filing for an exemption can lower payroll numbers and impact premiums, it can also make you financially liable for your injuries if you are hurt while working.
In Georgia, LLC members and corporate officers can’t get an exemption from Workers’ Compensation for the purposes of absolving their insurance liability. This means that if you have one or two regular employees besides yourself, getting an exemption won’t mean your company no longer has to have coverage.
That said, getting an exemption can lower your company’s payroll information a bit, possibly reducing Workers’ Compensation premiums. This is because premiums are largely based on employment numbers. However, exempting a few LLC members or corporate officers might have little impact on premiums, especially if a company’s workforce is significant.
Getting an exemption from Workers’ Compensation makes you vulnerable to financial liability for your own work-related injuries. LLC members or corporate officers that choose to exempt themselves from their company’s policy can no longer file a Workers’ Compensation claim for benefits in Georgia. This leaves exempt LLC members and corporate officers responsible for covering the cost of their injuries themselves.
Exempting yourself from coverage may be an unnecessary risk to take. Our brokers can find inexpensive policies that don’t require your company to get exemptions for certain individuals to lower the cost of insurance. It is important to weigh the pros and cons of getting an exemption so that you are properly prepared should a workplace accident occur that causes injury to you.
Call Our Brokers to Get a Workers’ Comp Policy Today
To get a quote from our Georgia roofing contractors workers’ compensation insurance brokers today, call NPN Brokers at (866) 340-9120.
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