Does Your Pennsylvania Business Carry Adequate Workers Comp Insurance?


Workers' Comp Insurance
Workers’ Comp Insurance

Pennsylvania law requires all employers to carry adequate workers’ compensation insurance.  Workers’ comp is an employer-financed, no-fault insurance that compensates employees who have been disabled due to a work-related injury or disease. 

Employers may secure workers’ comp insurance through a private insurance carrier or through the state fund.  Alternatively, employers have the option to be self-insured if they meet state requirements.  Self-insurance is often referred to as an “exemption”, but it does not exempt an employer from workers’ comp requirements.

An employer seeking a self-insurance exemption must demonstrate to the state Department of Labor and industry that it has the financial ability to pay the compensation an injured employee would be entitled to under state law.  A self-insured employer generally pays workers’ comp benefits directly to the injured worker, along with the expenses associated with the administration and defense of the workers’ comp claim and subsequent benefits.  The employer may pay an injured worker’s benefits and related expenses from its earnings and general assets, or from a fund established by the employer for that purpose.

Section 305 of the Pennsylvania Workers’ Compensation Act provides that an employer’s failure to insure its workers’ compensation liability is a criminal offense. Each day’s violation is a separate offense, amounting to either a third-degree misdemeanor or, if intentional, a third-degree felony.

If you have questions about Pennsylvania employment law, or another topic concerning your business, the attorneys at the Scolieri Law Group, P.C. can help.  Located in western Pennsylvania, our attorneys are experienced in Pennsylvania business law and can help you navigate regulations affecting your business. Contact us today at (412)765-0546 or info@scolierilaw.com.