Alabama Workers Comp Insurance

If you regularly employ less than five (5) employees, full-time or part-time and including officers of a corporation in any one business, other than the business of constructing or assisting on-site in the construction of new single-family, detached residential dwellings, the Alabama Workers' Compensation Law does not require you to have workers' compensation insurance coverage. Employers of domestic employees, farm laborers, or casual employees and municipalities having a population of less than 2,000 (according to the most recent federal census) are not required to provide coverage but can elect to be covered by the provisions of the Alabama Workers' Compensation Law.

AL Workers Comp Insurance Specific Regulations

• Alabama requires you to have workers compensation if you have five or more employees, full or part time, working in Alabama
• If you work for someone else you will not be covered by their insurance policy unless you are an employee. This requires independent contractors to have their own workman’s compensation insurance
• Alabama offers a private insurance market and an assigned risk pool for those struggling to secure insurance
• Sole Proprietors or partners are excluded from coverage, but have the option to opt in
• Corporate officers or members of LLCs are included, but have the option to opt out

There are 5 Ways Employers Can Purchase Workers Compensation Coverage in Alabama:

1. from an approved workers' compensation carrier who will write an insurance policy;
2. from the Assigned Risk Pool when insurance carriers refuse to write an insurance policy for you;
3. through a group self-insurance fund;
4. through individual self-insurance: or
5. through an approved alternative workers' compensation policy from an authorized insurance carrier.