Do I need workers compensation insurance?

Workers Compensation Insurance Requirements in Connecticut

In Connecticut, workers compensation insurance is mandatory for most businesses that have employees. This insurance provides coverage for medical expenses and lost wages if an employee is injured or becomes ill due to work-related activities.

Who Must Have Workers Compensation Insurance?

• Employers with one or more employees: Most businesses with at least one employee must carry workers compensation insurance.
• Corporate officers and certain partners: They may be required or allowed to opt in or out depending on their role and ownership.
• Construction and subcontracting businesses: These often have strict enforcement of workers compensation requirements.

Operational Considerations

• Business registration: Register your business with the Connecticut Department of Labor and ensure compliance with insurance requirements.
• Insurance procurement: Obtain workers compensation insurance through a licensed insurer or the state fund.
• Payroll and recordkeeping: Maintain accurate employee records and payroll data to support compliance and reporting.
• Employee classification: Correctly classify employees to determine appropriate insurance premiums and coverage.
• Reporting requirements: Report workplace injuries promptly as required to avoid penalties.

As of 2026, verify specific coverage thresholds and exemptions with the Connecticut Department of Labor or a licensed insurance provider to ensure your business meets current requirements.