How does workers' comp work in Louisiana?

It is important for all business owners to know the rules and regulations associated with workers compensation in the state of Louisiana. For the most part all businesses in the state of Louisiana have to carry workers' comp coverage. This includes those who only hire independent contractors and those businesses only hiring a few part time employees.

Some industries are exempt from the Workers' Comp requirement, like the oil and gas, entertainment and airline industries. Here we try to provide information about all things related to Workers Compensation Insurance in the state of Louisiana.

If you have questions about a workers' comp form feel free to contact a specialist at 888-611-7467. We want to be your source for workers compensation information, rates and quotes in Connecticut.

Workers' Comp Rules & Information for Louisiana

Who Needs Workers' Comp in Louisiana?

Louisiana employers are required to carry workers' compensation if they have 1 or more employees whether full or part time whose payroll is at least $3,000.00 annually. However, there are limited exclusions to this rule for some employees listed below:

  • Domestic Employees
  • Undocumented aliens
  • Licensed real estate agents
  • Directors of certain not for profits
  • Any employer acting as a common carrier while engaged in interstate or foreign trade by railroad
  • Airplane crews while dusting or spraying
  • Anyone performing services relating to the exploration, development, production or transportation of minerals (Mining).

A business or company may self-insure if the can meet the financial requirements. They can also self-insure under the State’s Insurance Fund besides obtaining insurance from a private insurance carrier. An employer can purchase workers' comp through the State Insurance Fund. An employer can become self-insured or become a member of a group self-insurer authorized by the Board. The majority of employers choose to carry workers' comp through standard carriers in the market. They typically buy coverage from a licensed insurance agent.

Does Louisiana Allow Workers’ Comp Exemptions for Owners?

Business owners including sole-proprietorships, partnerships, corporate officers and LLC members are all included under the requirement for Workers Comp but may elect to be excluded.

If they choose to be excluded they must give notice to the Insurance Carrier by filing a Notice of Election or Rejection of Coverage Form on the Louisiana form which is available on our forms page. Your agent should provide you with the form as well.

What are the Penalties for not Having Workers' Comp in Louisiana?

In Louisiana, there is a set fee or fine for an employer’s failure to carry workers' compensation. The law defines that the fine is $250.00 for the first offense and a $500.00 fee for each subsequent offense with a maximum of up to $10.000. Willful failure to carry workers' compensation is also punishable by up to one year in jail.

When Do I Get an EMR Rating in Louisiana?

All businesses start without an experience modification rate. Their effective EMR Rating is 1.00, which is neutral because it does not increase or decrease premium and makes no adjustment to an insurance carriers' workers' comp rates. In Louisiana the Department of Insurance determines the experience rating formula. In Louisiana, an employer qualifies for an EMR rating when its payroll reaches an amount which generates $10,000.00 in policy premium for the last year or 2 years. Or the experience rating period can be based on $5000.00 average of policy premium generated for more than 2 years of the experience rating period.

How Long do You Have to Report an Injury at Work in Louisiana?

Employees have to report an injury within 30 days of having actual knowledge of the injury to his or her employer. Employers are required to notify the Office of Workers Compensation within 10 days of actual knowledge. Insurance companies typically notify the state once a claim is filed with them.

How Long can an Employee Remain on Workers' Comp after a Claim?

The general rule is that an injured workers can draw up to 2/3 of their average wahes for up to 100 weeks while on temporary total disability. However, if the injury is disabling or catastrophic they can receive up to 520 weeks of supplemental earning benefits or choose a $50,000 lump sum settlment.

Louisiana Office of Workers' Compensation Administration?

P.O. Box 94040
Baton Rouge, LA 70804-9040
Phone: (225) 342-7555

Louisiana Workers' Compensation Corporation (LWCC)

The LWCC is a private, nonprofit mutual insurance company and it is the largest carrier of workers' compensation coverage in the state of Louisiana. In 1992 the LWCC was created to stable the Workers' Compensation marketplace. Louisiana is a unique state that brings with it unique risks. Because of the location on the gulf and as a port for the Mississippi River there are industries in Louisiana that are not located anywhere else in the country. LWCC is there to provide for the business needs of the citizens of Louisiana when private insurance companies might pull out because of the unique risks this area faces.

What is Workers' Compensation?

The basic purpose of the Workers’ Compensation is to provide wage replacement benefits and medical treatment for employees who have been injured or become ill due to a work-related injury or illness. It prevents the employer from bearing the costs of injuries that occur during normal business operations.

Crop Duster Exception

Louisiana provides an exemption for the crews of any airplane working in dusting or spraying operations. Because agriculture is so heavy in rural Louisiana the state has made an exception for employers who have employees taking flights related to dusting or spraying operations.

Musicians and Performers Exemption

Because New Orleans and the rest of Louisiana are such an entertainment hub the state has come up with special exemptions for workers' comp coverage for Musicians and other performers. It is not a requirement, for employers who employ musicians and other performers who are hired for individual performance contract, to carry work comp coverage.

How Does Workers' Comp Help my Business?

Your business benefits by not being liable for injuries that occur as a part of normal business operations. This applies whether the injury was the fault of the business or was caused by negligent actions of the employee.

How Does Workers' Comp Help my Employees?

Employees benefit from workers' comp coverage by having a portion of lost wages covered, or replaced, while they are hurt or sick and unable to work. It also pays for medical costs they might incur as a result of the sickness or injury.

Louisiana Insurance Directives Regarding Covid-19

Imposes a moratorium on policy cancellations - 1) Any notice of cancellation/nonrenewal in force and in effect on March 12 is null and void.  Such notice will have to be reissued after the expiration of this emergency rule. 2) Insurers cannot nonrenew/cancel any policy, unless due to fraud or intentional misrepresentation of material fact or at insured’s request. 3) No policy can be cancelled/nonrenewed due to a claim filed during/occurs during the COVID-19 emergency. 4) This does not apply to new policies issued after March 12.  5) All claims notification procedures are suspended. 6) If insurer receives a claim from an insured owing premium, can offset premium owed from any claim payment. Louisiana expanded the provision regarding renewals. Policies subject to renewal after the effective date of this rule must be renewed at the previously established premium, i.e., the rate structure, rating plan, and manual rules approved by the department, regardless of whether the effective date of such rates is before or during the duration of the rule.

Mandatory state law in effect from 03/12/2020 until 05/12/2020 or end of emergency.

State Orders Regarding Insurance Claims Related to Coronavirus

No current state orders.

Specialized Programs for Select Industries

We work with our national insurance partners to develop targeted programs with easier underwriting requirements and lower rates. We offer a broad range of business class codes that help streamline the quote process so you get the lowest price for coverage.

Knowing the Louisiana workers comp requirements can help lower the cost of coverage.

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Pay As You Go Work Comp

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Louisiana Pay as You Go

Payment plans on your terms.

In Louisiana we offer a flexible payment option called Pay as You Go Workers' Compensaiton Coverage. We know how important cash-flow is to your business and we created this program with that in mind. The Pay as You Go Program lowers your up-front costs and offers you real-time monthly reporting for your premium payment.

Start a quote online to see what other programs we have for your business.

Let Workers Compensation help your business navigate workers' comp insurance in Louisiana.

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Workers' Comp Includes Employers Liability Insurance?

Employers liability insurance is an additional layer of coverage included as part of a workers' compensation insurance policy. Employers Liability is known as Part 2 of the policy. It adds two additional coverages for employers:

Employers Legal Liability and Legal Defense Costs

In today's world, there are a variety of reasons employees and third-parties sue employers for damages. Here a some common types covered by employers liability insurance:

Third Party Lawsuits

Your employee sues another party that may have contributed to the injury, In turn, the third party sues your business.

Consequential Bodily Injury

Another party or individual is injured while providing care for the injured employee.

Dual Capacity Legal Action

An employee files a claim but also attempts to sue the employer for being responsible in other ways outside of the employment relationship.

Loss of Consortium

A spouse sues for damages caused by the loss of companionship or relations.

Employers Liability coverage is not included with coverage in the four monopolistic states. Employers in these states can endorse this coverage onto their General Liability policy. That coverage is commonly known as Stop Gap Coverage.

Workers' Comp Covers LA Employers from Injury Related Expenses & Lawsuits
Employers liability insurance is included under a workers' comp policy in most states.
  • Employers liability coverage is not included in all monopolistic states.
  • All NCCI and most other states' coverage includes employers liability insurance.
Visit NCCI for more resources and information about workers' compensation class codes. Visit United States Department of Labor for more information about government agencies managing workers compensation insurance rates.

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