Utah workers' compensation insurance: Your guide to requirements and getting a policy
If you’re an Utah employer looking to protect both your business and your team, you’re in the right place. At Beyond, we provide the essential information you need to understand how workers’ compensation works and how to stay compliant.
For employees, workers’ compensation offers peace of mind in the event of a job-related injury or illness. This type of insurance typically provides benefits such as partial wage replacement and medical coverage. For employers, having a policy in place also offers legal protection from potential lawsuits stemming from workplace incidents.
Now let’s take a closer look at which Utah employers are required to carry this type of coverage.
Utah law mandates that nearly every employer with one or more workers must have workers’ compensation coverage, including those hired under any contract of hire, regardless of legal status or age, including minors and undocumented workers.
All Utah employers are also required to post a notice in a visible area confirming compliance with workers’ compensation laws.
Under Utah Labor Code, some employers are exempt from the requirement to carry coverage. These include:
Sole proprietors without employees
Corporate officers or directors
Partners in a partnership
Real estate sales agents and associate brokers
Insurance salespeople
Unpaid interns and volunteers
Casual and domestic workers
Certain agricultural employees
Optional coverage is usually available for those in these categories. However, individuals without employees who are contracted by employers may be classified as statutory employees and must file a waiver to decline coverage.
Employers can purchase workers’ compensation insurance from any licensed insurance carrier in Utah. If a business is unable to obtain coverage due to a poor safety record or being high-risk, they can turn to the Workers Compensation Fund (WCF)—Utah’s insurer of last resort.
Some employers may also apply to self-insure, but this requires:
Advance authorization
A minimum of five years in business
A net worth of at least $10 million
Demonstrated ability to cover claims
For more information, employers can refer to the Utah Labor Commission’s self-insurance information page.
Failing to carry workers’ compensation insurance can result in serious consequences, including:
Fines starting at $1,000
A court-issued injunction that stops business operations
Loss of “exclusive remedy” protection, exposing the employer to employee lawsuits
Workers’ compensation in Utah includes a range of benefits, depending on the injury and the employee’s situation. Common benefits include:
Covers all reasonable medical expenses related to treatment, such as hospital visits, medication, prosthetics, and travel reimbursement.
Compensates employees who earn reduced wages while recovering from a work-related injury.
Employees can receive wage benefits starting on day four after the injury. If the disability continues for more than 14 days, the first three days are also covered. Benefits are capped at 312 weeks within a 12-year period.
Once an employee reaches maximum medical improvement, they may qualify for compensation based on the level of impairment.
Employees who are permanently and totally disabled may receive ongoing or lump-sum payments.
If an employee dies due to a job-related incident, their family may receive up to $9,000 in funeral expenses, plus monthly benefits for a spouse, children, or dependents.
Employees must report the injury immediately and seek emergency care if necessary. Employers have 7 days to:
Submit Form 122E – Employer’s First Report of Injury or Illness to their insurance carrier
The carrier must then file Form 122C – Carrier/Self-Insured Employer First Report with the Industrial Accidents Division within 14 days
The employee must receive a copy of the completed form.
Additionally, the treating physician must file Form 123 – Physician’s Initial Report within 7 days of the first appointment.
The first visit must be with an employer-designated doctor, unless it’s an emergency. After that, employees can request a one-time change to see their own provider. If the employer doesn’t use a preferred provider organization (PPO), the employee can choose any doctor from the beginning.
Employees are one of a company’s most valuable assets. That’s why so many businesses invest in workers’ comp, to shield themselves and their team from the financial strain of a workplace injury. Beyond the benefits to employees, the policy also protects your company from expensive lawsuits and state penalties.
If you have questions about securing workers’ comp for your Utah business, the team at Beyond is here to help.
