How to get workers’ compensation insurance in Oregon
You can get insurance from any insurance company that operates in Oregon. Most agents will ask for your estimated annual payroll numbers and what your employees do to get started.
If you are in a very risky industry or have a few bad claims, it will be harder to find an insurance company that is willing to take the risk to insure your company. In that case, you may have to use the state fund. This is usually more expensive and is the last resort.
Businesses that are really big have the option to self-insure. This means that they formally take the risk of managing and paying claims in-house and don’t have typical insurance.
You can reach out to the Oregon Workers’ Compensation Division for more information on insurance to protect yourself and your employees.
What can happen if I don’t have workers’ comp insurance in OR?
As an employer, it’s your responsibility to have a workers’ compensation insurance policy for your employees.
Here’s what can happen if you don't have one:
- The first offense for non-compliance is met with twice the amount of the premium that you should have paid for insurance, which is a minimum of $1,000.
- Subsequent offenses are met with fine increases of up to $250 per day per employee for every day of additional non-compliance since the first offense.
- If a worker is injured and not under workers’ compensation insurance, the employer is required to pay for lost wages and medical expenses. There will also be processing fees that could add up to hundreds of thousands in penalties.
- If non-compliance persists, employees can file lawsuits against their employers to recover what should have been paid in insurance expenses.
To avoid legal repercussions, it’s crucial for employers to comply with Oregon laws on workers’ compensation insurance. Non-compliance with Oregon workers’ comp laws could rack up significant debts in penalties and legal fees, which may result in a shutdown of your business.
