Do I need workers compensation insurance?

Workers Compensation Insurance Requirements in Rhode Island

As of 2026, Rhode Island requires most employers to carry workers compensation insurance to cover medical costs and lost wages for employees injured on the job.

Who Must Carry Workers Compensation Insurance?

• All businesses with one or more employees: If you have at least one employee, you generally must secure workers compensation insurance.
• Construction industry: Special attention is needed as construction businesses must comply strictly with coverage rules.
• Exemptions: Sole proprietors and certain corporate officers may be exempt but should verify eligibility with the Rhode Island Department of Labor and Training.

Operational Steps to Comply

• Obtain coverage: Purchase a workers compensation insurance policy from a licensed carrier or through the Rhode Island Workers’ Compensation Insurance Plan if you cannot find coverage in the private market.
• Maintain records: Keep detailed injury reports and insurance documentation as part of your compliance and recordkeeping obligations.
• Report claims: Promptly report workplace injuries to your insurance carrier and the Rhode Island Department of Labor and Training as required.
• Renew annually: Ensure continuous coverage by renewing your policy before expiration to avoid penalties or business interruptions.

Related Operational Considerations

• Payroll integration: Incorporate workers compensation insurance costs into your payroll and budgeting processes.
• Employee classification: Correctly classify employees and contractors to determine coverage obligations accurately.
• Compliance monitoring: Regularly review your insurance status and state requirements to stay compliant with Rhode Island regulations.