UtahWorkers' Compensation Insurance

Utah is among the least expensive states for workers’ compensation insurance. Costs are based on the number of employees you have, how much they are paid, the types of jobs they perform, and your company's history of accidents and workers’ compensation claims. 

The Utah Department of Insurance assigns every occupation a base rate for coverage according to the likelihood that an employee will be severely injured. Insurance companies must use these assigned rates, but costs can vary from one provider to the next because they are permitted to make adjustments up to 25% using policy credits and debits.

The following are examples of workers' compensation cost ranges per $100 of employer payroll for a few different occupations in Utah:

• Landscapers:  $2.16 to $4.64
• Tree Trimmers/Removers/Pruners:  $4.75 to $10.21
• Plumbing Contractors:  $1.46 to $3.14
• Retail Store Workers:  $0.68 to $1.46
• Clerical/Office Employees:  $0.07 to $0.15
• Restaurant Workers:  $0.68 to $1.46

Employers with a solid employee safety record will pay rates at the lower end. Those whose history of worker injuries exceeds industry expectations will pay rates at the higher end.

Utah state law requires all employers to carry workers’ compensation insurance. There are a few exceptions. Sole proprietors and partners with no employees do not need coverage. You are also not required to purchase coverage for:

• LLC members, except in the construction industry
• Up to five directors and officers of a corporation
• Independent contractors
• Casual employees
• Household/domestic workers
• Some agricultural or horticultural laborers
• Some real estate and insurance brokers

Workers' compensation insurance can be purchased from a commercial provider or through the state-administered fund in Utah. With approval, companies with a solid financial standing may opt to self-insure.

In Utah, workers' compensation insurance provides injured employees with three essential types of coverage: medical benefits, indemnity benefits, and death benefits.

Medical Benefits

If an employee is injured on the job or is diagnosed with an occupational illness, workers’ compensation insurance can cover the cost of all reasonable and necessary medical care so that the employee pays nothing out of pocket. This includes coverage for:

• Visits to the treating physician
• Hospital stays
• Follow up care
• Physical therapy
• Medications
• Prosthetic devices and medical supplies

Workers’ compensation can even reimburse employees for mileage to and from their medical appointments. These benefits will continue for as long as treatment is needed.

Indemnity Benefits

Indemnity benefits replace a large portion of an injured employee’s lost income. They do not suffer a significant financial setback if they must take more than three days off work to recuperate. These benefits include:

• Temporary partial disability (TPD)
• Temporary total disability (TTD)
• Permanent partial disability (PPD)
• Permanent total disability (PTD)

The payment amounts the employees will receive depends on their income before the incident and the nature and severity of their injury. Coverage for temporary disability is capped at 312 weeks. Permanent disability coverage can continue for as long as the employee is disabled.

Death Benefits

Unfortunately, workplace injuries and illnesses are sometimes fatal. Approximately 50 deaths are reported in Utah every year.

In the event of a fatality, workers’ compensation insurance can help cover the cost of the employee’s funeral and burial costs and provide ongoing benefits in the form of compensation to their spouse and dependents.

Workers’ compensation covers a lot of worker injuries, but it does have some exclusions.

Workers' compensation typically excludes coverage for:

• Employee injuries sustained outside of work
• Accidents that occurred while the injured employee was under the influence of alcohol or illegal drugs
• Intentional or self-inflicted injuries
• Injuries that occur while an employee was engaged in horseplay or was committing a serious crime

If an employee believes that their claim was unjustly denied, they can contact the Intake Claims Department of the Utah Industrial Accident Division to try to work out a resolution. If they cannot come to an agreement, the employee can file an Application for Hearing with the Labor Commission’s Adjudication Division.

Contractors are frequently asked to provide proof of workers’ compensation coverage, particularly if doing work for a governmental entity. This is because their clients want to be certain that they will not be named in a liability lawsuit if a worker is injured while doing a job on their property.

If a prospective client asks you for proof of coverage, you can show them a workers’ compensation insurance certificate. This certificate, which is issued by your insurer when you purchase or renew your policy, is a single-page document that provides information about your coverage, including details like:

• Name and address of the insured
• Name of the insurance company and all policy numbers
• Effective date and expiration date for each policy listed

Alternatively, your clients can look up your workers’ compensation coverage status using an online search since the state of Utah keeps a database of all current workers' compensation policies.

Utah also has what is referred to as an extra-territorial certificate. Extra-territorial coverage is when insurers extend coverage to workers who are doing jobs outside of Utah. An extra-territorial certificate notifies the other state that the employee is covered and provides details about the coverage.

Independent insurance agents make it easy to find the right workers’ compensation coverage because they do the comparison shopping for you. These agents can take the time to answer your coverage-related questions and explain the fine details of your policy choices.

No business is too small to benefit from the help of an independent agent. Arrange an obligation-free consultation with an independent insurance agent near you to compare a selection of customized quotes from some of the best workers’ compensation insurance companies in Utah.

No. Workers' compensation benefits are not considered taxable income.