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The Ocean State is renowned for its coastal allure and quaint appeal, offering a captivating landscape of serene beaches, historic landmarks, and charming seaside towns.
Rhode Island’s economy flourishes with diverse industries such as maritime trade, manufacturing, and tourism, drawing visitors from far and wide to explore its coastal treasures.
In this dynamic setting, protecting your business and employees is paramount. Workers' compensation insurance offers essential coverage for accidents and injuries, guaranteeing the well-being of your workforce and the resilience of your business in Rhode Island's thriving economy.
Here’s everything you need to know about Rhode Island workers’ compensation.
Workers' compensation is a state-mandated insurance program for almost all employers in Rhode Island with one or more employees. Coverage provides medical and wage replacement benefits for employees who suffer work-related injuries or illnesses.
Without workers’ compensation, the cost of an injured employee’s medical treatment could become the responsibility of your business.
The State of Rhode Island Department of Labor and Training, Division of Workers' Compensation administers the workers’ comp law in the state. The law requires employers with one or more employees to be covered by an active workers’ compensation insurance policy.
Businesses can obtain workers’ comp coverage through a partner like EverPeak Insurance. Alternatively, companies that meet the state’s requirements may also apply to be self-insured.
Employees can verify online if their employer has coverage.
Policies include protection for full and part-time workers.
Some exemptions from workers’ comp in Rhode Island include:
Workers' compensation covers a range of work-related injuries and illnesses, including physical injuries resulting from an accident and occupational diseases developed over time due to job conditions.
Rhode Island workers’ comp insurance provides three types of benefits for work injuries:
Injured workers are paid 62% of their average weekly wage in Rhode Island. This average is calculated based on their pay for the 13 weeks prior to the week of their injury.
As of 2023, Rhode Island’s workers’ comp weekly benefit amount maximum is $1,534.
In the event of a work-related injury or illness:
Employees in Rhode Island should report their injury to their employer immediately. The employer will then report the injury to their workers’ compensation insurance provider.
The employee should immediately seek medical attention.
If an employer’s insurance provider accepts the claim, the worker should begin receiving benefits to cover medical expenses and lost wages.
Following their recovery, a worker is expected to resume work safely. If a work injury has left an injured employee unable to do any type of work, the employee might be entitled to permanent disability benefits.
Employees may choose their first healthcare provider. However, if they decide to switch doctors, they must select one from the employer’s workers’ compensation insurer’s preferred provider network.
Employees may also seek approval from the insurer to see an out-of-network doctor.
If the insurer does not have a preferred provider network, these restrictions do not apply.
If the employer’s workers’ comp insurer has accepted the claim, the employee will receive wage replacement benefits for time lost starting on their fourth consecutive day of missed work.
Insurers will not compensate employees for their first three days of missed work and lost wages.
Injured workers who disagree with the outcome of their claim can file a petition with the Rhode Island Workers’ Compensation Court.
Unless exempt, employers in Rhode Island must carry workers' compensation insurance or qualify for self-insurance. Compliance with this requirement 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.
Rhode Island employers who fail to provide workers' compensation insurance may be fined $1,000 per day for each day without insurance. An employer may also be subject to a felony charge and face a $10,000 fine upon conviction and two years in prison.
Additionally, any business operating without workers’ compensation insurance risks being closed by the Director of the Rhode Island Department of Labor and Training.
In most cases, policies bar employees in Rhode Island 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, a business’s workers’ compensation policy does not cover independent contractors in Rhode Island. 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 unsure whether an independent contractor should be treated as an employee, seek legal guidance.
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.