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Alabama, known for its unique blend of Southern charm and vibrant culture, offers a variety of experiences, from the lively city of Birmingham to the serene shores of the Gulf Coast.
The Yellowhammer State provides an abundance of opportunity for businesses with a growing economy and diverse industries. Whether nestled in the bustling cityscape of Huntsville or amidst the natural wonders of the Appalachian Mountains, protecting your business with comprehensive workers' compensation insurance is essential.
Workers' compensation is a state-mandated insurance program for employers with five or more employees. It’s designed to provide employees who suffer work-related injuries or illnesses with medical treatment and indemnity benefits.
Without workers’ compensation, the cost of an injured employee’s medical treatment could become the responsibility of your business.
Alabama’s Department of Labor is responsible for administering the workers’ comp law in Alabama. The law requires employers with five or more employees to be covered by an active workers’ compensation insurance policy.
Full or part-time employees, officers of a corporation or members of an LLC are considered employees under Alabama workers’ compensation law.
Workers’ comp coverage can be obtained through a partner like EverPeak Insurance. Alabama’s Workers’ Compensation Division can approve self-insured requests based on financial requirements.
Employees can verify online if their employer has coverage through an online search tool.
Policies include protection for full-time and part-time workers.
Exemptions from workers’ comp in Alabama may include, for example:
Workers' compensation covers a range of work-related injuries and illnesses, including physical injuries resulting from an accident and occupational diseases that may develop over time due to job conditions.
Alabama workers’ comp insurance provides three types of benefits for work injuries:
The weekly compensation rate in Alabama is 66 ⅔% of a person’s average weekly wage based on earnings for the 52 weeks before the injury.
Find more information on Alabama’s workers’ compensation rates here.
In the event of a work-related injury or illness:
If the workers’ compensation insurance partner accepts the claim, benefits will be issued to ensure timely care.
Employers in Alabama select the treating physician at the time of the accident. If the employee is dissatisfied with the initial treating physician chosen by the employer, and if further treatment is required, the employee may advise the employer and be entitled to select a second physician from a panel of four physicians chosen by the employer.
Employees must seek medical treatment from these designated providers to ensure coverage.
To resolve a workers’ compensation claim dispute, an injured worker can contact Alabama’s Workers’ Compensation Division for assistance.
The Workers’ Compensation Division also offers an Ombudsman Program to quickly and informally allow the parties to settle their workers' compensation dispute.
Generally, employers in Alabama with five or more employees must carry workers' compensation insurance or qualify for self-insurance. Compliance with these requirements is essential to protect both the employer and employees.
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
We recommend requesting multiple quotes and comparing the offerings before making a decision.
Covering your business and employees with a trusted insurance partner — like EverPeak — brings peace of mind so you can focus on your bottom line.
In most cases, employees in Alabama are barred from suing their employers for work-related injuries or illnesses. The workers' compensation system provides an exclusive remedy, meaning that employees typically cannot file a lawsuit against their employers. Instead, they must pursue a workers' compensation claim to receive benefits for their injuries or illnesses.
Generally, independent contractors aren’t covered by workers' compensation insurance in Alabama. Workers' compensation laws typically apply to employees rather than independent contractors.
However, it's important to note that the classification of a worker as an independent contractor or an employee can be complex, and misclassification can lead to legal disputes. If you’re unsure about your classification, we recommend seeking legal guidance.
Ideally, the incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensure the necessary steps are taken to initiate the workers' compensation claims process.
Employees can verify online if their employer has coverage.