The A-Z guide to Utah Workers' Comp

Understanding Utah Workers’ Compensation Rules

Name: Workers' Compensation Insurance for Utah
Brand: Kickstand Insurance
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Utah workers’ compensation rules mandate that any business with employees must carry coverage. Workers’ compensation plays a crucial role in helping employers safeguard their workforce while assisting employees if they are injured or harmed while on the job.

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1 employee

Self-employed workers are exempt from Utah workers’ compensation rules.

The following are exempt:

Real Estate Sales
Insurance Salespeople
Unpaid Interns and Volunteers
Agricultural Employees
Casual and Domestic Employees

Is workers’ comp insurance required in Utah?

According to Utah workers’ compensation rules, every employer in the state must provide workers’ compensation coverage for all of their employees, regardless of how many they have. Employers must also post a notice for everyone to see that documents their compliance with workers’ comp laws.

Do you need workers’ compensation coverage if you’re self-employed?

Self-employed workers are exempt from Utah workers’ compensation rules. This includes sole proprietors, independent contractors, partnerships, and LLCs (limited liability companies).

However, self-employed workers can obtain coverage out of choice, typically for peace of mind, especially if they are doing strenuous or dangerous contract work for others.

If self-employed workers are hired for services for Utah businesses, they are covered as “statutory employees” under a workers’ compensation contract until the services end.

However, if the self-employed worker doesn’t want workers’ comp coverage, they can obtain a Workers’ Compensation Coverage Waiver to waive their rights.

Who is exempt from Utah worker’s comp requirements?

The following categories may be eligible for exemption from Utah workers’ compensation laws:

Corporation Officers or Directors
Real Estate Sales Agents and Associate Brokers
Insurance Salespeople
Unpaid Interns and Volunteers
Agricultural Employees (some exclusions apply depending on the nature of work and employment relationship)
Casual and Domestic Employees (exclusion applies if a domestic employee works 40 hours or more per week)

Exempt workers can purchase workers’ comp voluntarily if they wish to have coverage

How much is workers’ comp coverage in Utah?

Your Utah workers’ comp rate will depend on the following factors:

The type of business you have
The size of your payroll
Your safety record
Claim history

How can Utah small business owners save money on workers' comp?

Utah workers’ compensation rules are stringent, but there are ways for small business owners to avoid overpaying for insurance policies.

Some of the best methods to reduce workers’ comp expenses include:

Establish a return-to-work program to help injured employees return to work quickly with modified duties
Ensure all employees are appropriately classified according to their job responsibilities
Shop around for insurance providers and compare rates for competitive pricing
Maintain a safe workplace to reduce the risk of injuries and accidents
Review and update coverage to ensure you aren’t overpaying for workers’ comp insurance
Ask insurance providers for discounts or credits available to small business owners

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How does workers’ comp work in UT?

Utah workers’ comp rules operate under no-fault insurance policies, where insured parties are compensated for losses by insurance providers, regardless of what led to the accident, injury, or loss.

Also known as PIP or Personal Injury Protection, workers’ comp insurance in Utah covers medical expenses, loss of income, and funerary expenses for policyholders and beneficiaries.

After an accident at work, employees have 180 days to report it to an employer. From there, the employer has seven days to report to workers’ comp insurance carriers under Employer's First Report of Injury or Illness.

The insurance provider will open a claim for benefits within two weeks of a report. Employees will then receive an acceptance or denial within 21 days.

What does workers’ comp cover in Utah?

Workers who file a workers' comp claim in Utah can receive benefits for the following:

Medical bills

Lost Wages

Death Benefits

Workers' comp coverage also protects employers from legal action. This means that if an employee sues your business because of a workplace injury, the insurance will cover the legal costs of the case.

How to get workers’ comp insurance in Utah

Businesses in Utah can get workers’ comp benefits through insurance carriers authorized by the Utah Insurance Department. There are many insurance carriers that sell insurance in Utah and you can get a few quotes to compare your options.

Businesses that can’t get insurance through an insurance company, either because they are in a high risk industry or have a bad claims history, can get insurance through the state fund. These policies are more expensive but with a good track record, you’ll usually be able to get insured by a typical company in a few years.

Very large, profitable companies can also purchase coverage from the Workers’ Compensation Fund of Utah, a state-owned insurer unique to coverage for Utah businesses.

If your business qualifies, you can apply to the Industrial Accidents Division to self-insure. This means your business would directly pay for workers’ compensation claims out of your pocket.

What can happen if I don’t have workers’ comp insurance in Utah?

Utah workers’ compensation rules are strict, so employers charged with non-compliance face financial penalties starting at $1,000 per claim and rising from there.

Several claims of non-compliance could result in legal consequences, such as a legal injunction that would prevent the business from operating in Utah.

In severe cases, criminal charges could be filed for financial misdemeanors, and the company would lose legal protection. Loss of protection leaves businesses open to being sued by employees who have experienced injuries or illnesses while on the job.

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FAQS

What are workers’ comp death benefits in UT?

Coverage for funeral or burial expenses up to $9,000
Weekly compensation benefits for dependents are calculated as a percentage of the worker’s weekly wage. This may not exceed 12 years after the date of death.
Lump sum payments equivalent to two years of the worker’s weekly wage

How do workers’ comp settlements work in Utah?

Utah workers’ comp rules follow two types of comp settlements.

Compromise settlements are used when there’s a dispute over benefits owed. Employers and employees reach a compromise of benefits to avoid risk, expense, and delays.

Commutation settlements are used when rights to benefits have been established, and both parties agree on benefits to be paid under the Utah Workers’ Compensation Act.

Both types of settlements require the Utah Labor Commission’s approval to ensure fairness and law compliance.

What are the statute limitations regarding workers’ comp in UT?

An employee has 180 days to report an injury to an employer
An employee can claim workers’ compensation within 12 years of a workforce injury but must have a solid case to prove that they are due compensation.

How do I get a workers’ comp insurance policy with Kickstand Insurance?

Start by filling out a short online form about your business. We’ll use that info to get you an estimated quote. Then, one of our experienced agents will contact you to review the quote and make sure you are getting the absolutely lowest rate possible for your business. Once the quote is finalized, you’re ready to buy the policy - often with coverage starting that day!

Ready: Fill out an online form. It only takes 5 minutes!
Set: One of our agents will contact you to review the quote.
Go: You can get covered starting today!