How does workmans comp work in Missouri?

Missouri's earliest workers compensation law was adopted in 1925. It enacted a simple procedure whereas injured employees could receive medical and disability benefits without having to hire a lawyer. Today, Missouri work comp law is much more complicated in the Show-Me State.

The state of Missouri uses NCCI to collect statistical data and establish rates for all Missouri workers' comp class codes. NCCI also manages experience modification factors for the state.

In 2005, The Missouri legislature changed MO workers compensation laws to make it more difficult for employees to obtain workers compensation benefits if negligent. The new law required that the on-the-job injury be the prevailing factor rather than just a factor at all. Many of the legislative changes are still being tested in the court system and the overall affect on premium is still unrealized.

Workers' Comp Rules & Information for Missouri

Who Needs Workers' Comp in MO?

Certain types of workers are exempted by state statute including: domestic servants, farm workers, some real estate agents, direct sellers and commercial trucking owner-operators. Employers can choose to cover these groups under workers compensation. Otherwise employers with 5 or more employees, full or part-time, are required to carry coverage. Corporate officers are included in this head count. Any contractors in the construction industry with 1 or more employees must carry workers compensation insurance.

Does Missouri Allow Workers' Comp Exemptions for Owners?

A business entity established as either a sole-proprietorship or partnership are excluded from coverage unless they choose to be included. LLC Members are included for workers' comp unless they choose to be excluded. Corporate officers are considered employees and must be included. Regardless of business structure, the minimum payroll used to calculate the cost of workers' comp for included owners is $42,300. However, 10% of their payroll should be designated under clerical class code 8810.

In Missouri, owners who want to change from the default exemption rules must be listed on the signed Acord 130 application sent to the insurance company so it can be filed with the state.

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

Workers compensation related penalties are pretty strict in Missouri. Failure to carry coverage is a Class A Misdemeanor. A second failure is a Class F Felony. Both charges can include a jail sentence. Additionally, business owners can be fined either 3 times the amount of the estimated annual premium or up $50,000 for non-compliance.

When Do I Get an EMR Rating in Missouri?

All Missouri 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. Once a business qualifies, NCCI will mail the new Experience MOD Worksheet each year prior to the renewal date. In Missouri, an annual policy must cost more than $7,000 or cost more than $3,500 for two consecutive years to qualify for experience rating.

Learn more about Experience Modification Rates.

Missouri Workers Compensation Regulations

The Missouri Division of Workers' Compensation oversees workers' comp in Missouri. They approve all workers compensation regulations, monitor the workers' comp market in MO, and manage the Assigned Risk Pool for the State. DIFP can be contacted at 800-394-0964.

Missouri Workers Compensation Insurance Plan

The Missouri Workers' Compensation Assigned Risk Pool (also known as the Missouri Workers' Compensation Insurance Plan) is designed to provide access to workers compensation coverage for employers who are unable to find coverage from a private insurance company. The plan is currently administered by Travelers Insurance Company. The plan goes out to bid by interested carriers every few year. Business owners can obtain state fund coverage through most licensed insurance agents.

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

Employers are required to notify their insurance company as soon as practical after a work-related injury. The injury must also be reported to the MO Division of Workers' Compensation, but this is typically handled by your insurance company. Employees have 30 days to notify the business of a claim without losing any benefits. Employers must file a First Report of Injury within 30 days of having knowledge of the claim. If an employer refuses to file a claim with the carrier, then the employee can file the claim with the Division of Workers Compensation or obtain and attorney.

How Long can an Employee Remain of Workers' Comp After a Claim?

The general rule is that an injured workers can draw unemployment for up to 300 weeks while on temporary total disability or until they reach Medical Maximum Improvement.

Contractors Credit Premium Adjustment Program

CCPAP provides a premium credit back to contractors when their average wages are higher than $18.00 per hour in Missouri. Insurance companies are required by law to send the required form to all contractors who are in an eligible class code. The form must be completed and sent to NCCI within 180 days from the policies inception. For more information on the CCPAP program in Missouri please contact one of our workers' compensation Specialists.

Missouri Second Injury Fund

The Missouri Second Injury Fund was established by legislature to remove the burden of providing work comp benefits to an injured worker for disabilities that existed prior to the current injury. The Fund compensates injured workers who become permanently disabled beyond the scope of a single injury due to prior injuries sustained.

In 2014 the second injury fund surcharge double from 3% to 6% in an effort to prevent the fund from going bankrupt. Rates will likely increase in the future.

Workers' Compensation Rates Expected to Increase

The National Council on Compensation Insurance (NCCI) recommendeded a workers compensation rate increase for Missouri for 2020. The Missouri Department of Insurance recommended a slightly less increase. State law allows insurance companies to set their rates based on either recommendation.

The largest workers' comp provider in the state with 17.75% market share, Missouri Employers Mutual, is expected to increase rates an average of 10.8% during 2014.

We are advising employers to shop workers compensation coverage so that carriers must compete for their business.

Senate Bill Doubles the Second Injury Fund Surcharge

The surcharge rate on all Missouri workers' comp policies will increase from 3% to 6% due to a Senate Bill passed by the Governor. The Mo Dept. of Insurance estimated the Fund would likely go broke without an infusion of more funding.

Missouri Insurance Directives Regarding Covid-19

Coverage for MO residents should continue under all policies in effect as of March 13, 2020, until this bulletin is no longer effective.  Insurers are “strongly encouraged” not to cancel, nonrenew, or terminate coverage while this bulletin is in effect.  Insurers are not required to waive premium or other consideration owed on any policy.  Failure to pay premium or remit consideration may subject the policy to a retroactive cancellation.  MO DOI asks insurers to report on steps insurer is taking in response to this bulletin.

Discretionary state order in effect from 03/13/2020 until the governor's executive order is terminated ot the order is rescinded.

State Orders Regarding Insurance Claims Related to Coronavirus

A first responder (defined as law enforcement officers, firefighters, or emergency medical technicians) who contracts or is quarantined with COVID-19 is presumed to have an occupational disease arising out of and in the course of employment. This includes a situation where the first responder is quarantined as a result of: 1) the employer's direction due to suspected exposure; 2) displaying any symptoms; 3) a positive test; 4) receives a doctor's diagnosis; or 5) receives a lab-confirmed diagnosis. This presumption retroactively applies to all first responders who otherwise would qualify for this rule. A first responder is not entitled to this presumption if a subsequent medical determination establishes by clear and convincing evidence that the individual did not actually have COVID-19 or was quarantined for exposure to COVID-19 that was not related to employment.

Mandatory Missouri State law for all insurance lines in effect from 03/25/2020 until further notice.

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 Missouri workers comp requirements can help lower the cost of coverage.

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Missouri Schedule Rating Plan

Schedule Rating Saves You Money

A schedule rating allows insurance companies to adjust an employer's premium based on unique underwriting characteristics such as years in business, management experience, and location. State law in Missouri allows insurance carriers to place a policy credit or debit on a policy up to 25% maximum. Schedule rating is important to business owners because it can have a significant impact on the cost of coverage.

Our agency helps negotiate MO scheduled credits for employers.

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

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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 MO 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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