If you ever get injured or become sick because of your job, you’re entitled to workers compensation benefits. These benefits include medical care, physical therapy, disability benefits and reimbursement for lost wages among other benefits.
Workers compensation insurance laws are set at the state level, with each state making and enforcing its own rules. Here is a look at how workers compensation works in Louisiana.
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Who Needs to Buy Workers Compensation in Louisiana?
In Louisiana, employers must maintain workers compensation coverage even if they only have one employee.
By law, most employees in Louisiana receive workers compensation coverage from their employers on the day they start working. Full-time, part-time, seasonal or minors all receive this important coverage.
There are some exemptions in Louisiana:
- Domestic employees
- Most real estate salespeople
- Unpaid officers and directors of certain non-profit organizations
- Public officials
In addition, most volunteer workers would not be entitled to workers compensation benefits.
What Louisiana Workers Comp Insurance Covers
In Louisiana, an employee who suffers an injury that’s covered by workers comp may be entitled to weekly or monthly benefits if the injury prevents the employee from returning to work for more than seven calendar days, according to the Office of Workers Compensation Administration.
The first installment of benefits payable for temporary total disability, permanent total disability or death benefits become due on the 14th day after the employer or insurer has knowledge of the injury or death.
During the period of temporary total disability, the employer or its workers compensation insurer is responsible for the payment of benefits to the employee in the amount equal to 66⅔% of the employee’s average weekly wage.
An employee who suffers a work-related injury may be entitled to supplemental earnings benefits if they are able to work but are unable to earn at least 90% of the wage they were earning prior to the injury. Supplemental earnings benefits are calculated as 66⅔% of the difference between the average monthly wage before the injury and the average monthly wage the employee is capable of earning. Supplemental earnings benefits in Louisiana are payable for a maximum of 520 weeks.
If the employee dies from a job-related accident, their spouse and children may be entitled to weekly benefits based on the Louisiana Workers Compensation Act. If there are no surviving dependents, the employee’s surviving parents are entitled to a one-time benefit of $75,000 each. Burial expenses, not to exceed $8,500, can also be paid.
Where To Get Workers Compensation Insurance in Louisiana
You can buy workers compensation coverage from private insurance companies authorized to operate in Louisiana. Because you have many choices for coverage, it’s a good idea to shop around for the best deal that fits your needs.
Some businesses choose to self-insure for workers comp. With self-insurance, the employer pays workers compensation claims directly to the employees.
Largest Workers Comp Insurance Companies in Louisiana
| Rank | Company |
|---|---|
| 1 | Louisiana Workers’ Comp Corp. |
| 2 | LUBA Workers’ Comp |
| 3 | Zurich |
| 4 | Travelers |
| 5 | Great American Insurance |
| 6 | Chubb |
| 7 | AIG |
| 8 | AMERISAFE |
| 9 | Liberty Mutual |
| 10 | The Hartford |
How to Self-Insure in Louisiana
To self-insure for workers compensation in Louisiana, you’ll need to send an application to the Office of Workers Compensation.
In Louisiana, a self-insurance application requires:
- A certificate of insurance from your current insurer proving you have workers compensation coverage
- The three most current years of audited financial statements
- $100 application fee
- A copy of a service contract for a third-party administrator or, if you are using your own personnel, the resumes of those employees
- The name of the contact person for self-insurance and a contact phone number
Who Administers the Louisiana Workers Compensation Act?
The Office of Workers Compensation Administration was created in 1983 to administer the provisions of the Louisiana Workers Compensation Act. These provisions include:
- Investigating allegations of fraud
- Monitoring compliance
- Compiling information regarding workers compensation claims
- Resolving disputes over hospital care and services
Injuries Covered by Louisiana Workers Compensation
Louisiana’s workers compensation law covers both mental and physical injuries from accidents or diseases due to work. The event causing the work injury must be within the course of an employee’s job for the injury to be covered under a workers comp policy.
Paying Workers Compensation Benefits
An employee who suffers a workers compensation injury may be entitled to weekly or monthly indemnity benefits if the injury prevents them from returning to work for more than seven calendar days.
In addition, an employee may qualify for supplemental earnings benefits if they are able to return to work but can earn at least 90% of the wage earned prior to the injury.
Supplemental earnings benefits are paid on a monthly or weekly basis.
Workers Compensation Claim Problems
An employee with a problem with a workers compensation claim should reach out to their employer or the insurance company handling the workers compensation coverage.
If the employer or workers compensation insurance company is unable to solve the problem, the employee can request a mediation conference with an Office of Workers Compensation mediator.
Louisiana Workers Compensation Insurance Cost
There are a number of factors impacting the cost of workers compensation insurance in Louisiana: your total annual payroll, the types of work your employees do and your business’s past claims history.
The average workers comp rate in Louisiana is 17 cents per every $100 in payroll for the lowest risk employees and $15.93 per every $100 in payroll for the highest risk employees, according to Cerity.
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I Don’t Have Employees. Do I Need To Get Workers Compensation Insurance for Myself?
Under Louisiana law, there are situations where you don’t need workers compensation if you don’t have employees for your business. These situations include:
- The business is owned by one person
- The business is a partnership
- The business is a one- or two-person owned corporation with those individuals owning all of the the stock and holding all the offices of the corporation
In these instances, as long as you don’t have employees you don’t need to buy workers compensation insurance in Louisiana.
Even so, there may be times when you may have to obtain workers compensation for yourself due to contractual obligations. So don’t be surprised if a work contract requires workers compensation coverage.
Penalties for Not Carrying Workers Compensation
In Louisiana, employers that fail to carry workers compensation insurance can be fined up to $250 per employee for a first violation and $500 per employee for subsequent violations up to $10,000.
In addition, an employer can be charged with criminal violations including:
- A willful failure to provide workers compensation insurance
- Providing false information in regard to having a workers compensation insurance policy
- Providing false information in order to reduce a workers compensation premium
Employers in violation of the laws regarding workers compensation may be served an injunction against doing further business until a workers compensation policy is obtained and proof is provided to the Office of Workers Compensation.
As a Small Business Owner, Do I Need to Carry Workers Compensation Insurance For Myself?
Business owners and certain officers of a corporation can choose to exempt themselves from a workers compensation insurance policy but only if they own at least 10% of the company. This exemption must be done in writing and sent to the insurance company.
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