How to Opt Out of Workers' Comp
Workers' Compensation Insurance began in the early 1900s to protect employees from poor working conditions. It is a type of business liability insurance required by most states. Employers carry it in case you or a co-worker suffers from a work-related injury or disease. In addition, under many circumstances the Worker's Compensation benefits, or indemnity, becomes your exclusive remedy, barring you from suing your employer or even pursuing restitution from a co-worker who caused your injury. In limited circumstances, employers may not have to carry the insurance, or, perhaps you are a family member and wish the option to opt out of Workers' Compensation coverage.
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Instructions
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Check with the Workers' Compensation Board to see if the law allows you to opt out; some states may not allow you though. Workers' Compensation Insurance premiums are your employer's responsibility to pay, not yours.
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Weigh your options carefully on whether or not to waive your right to receive Workers' Comp benefits. Contact a Workers' Compensation attorney to determine if you should consider opting out or waiving your right to Workerrs' Compensation benefits/indemnity. Employers have no legal requirement to inform you of what legal rights you may be surrendering by remaining under the Workers' Compensation umbrella, such as the right to sue your employer in cases of severe injury or disease.
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Consider what you could be giving up should you stay under the umbrella of Worker's Compensation vs. what you may have to go through to receive income if you opt out. Indemnity received from work-related injury or disease is not designed to fully pay 100 percent of your loss wages.
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Tips & Warnings
Generally, you must opt out of Workers' Compensation before you suffer an injury or disease.
Even if you work as an independent contractor, under Worker's Compensation law you could still qualify for benefits or indemnity as employee. Check with an attorney if you suffer an on-the-job injury or disease.
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