All Utah employers are required to provide workers compensation coverage for their employees. There is however an exception to this law and it’s for individuals or certain companies with no employees. These individuals or companies can “waive” their right to workers compensation by obtaining a Utah Work Comp Wavier or WCCW. Basically, you are assuming all responsibility if you get hurt on the job.
To be eligible for the Utah Work Comp Wavier, you must fit into one of these categories:
- Sole Proprietors i.e., the owner is the only worker and not a corporation.
- Partnerships with only the partners as workers.
- Limited Liability Companies: The members of some LLC’s can qualify for the Work Comp wavier. However – In the Utah Construction Trades Licensing Act Utah Code Chapter 58-55 – LLC’s are required to carry workers compensation for their members. So a construction company that is an LLC is not going to be eligible for the Utah Work Comp Wavier.
- Directors and officers of a corporation with no employees: Employers – Utah Labor Commission
- Independent Contractors are a different classification of worker. Research and make sure you qualify as an independent contractor that will be eligible.
In order to qualify you will need to complete an online application WCCW | Utah Labor Commission and pay a $50.00 nonrefundable fee. You will also need to submit a combination documents such as:
- A valid business license.
- An occupational or professional license.
- An active general liability insurance policy.
- The income tax return for the business.
- Bank account information from the business.
- Address and phone number verification for the business.
- An advertisement for the business.
The online application is fast and simple. Once submitted it will be reviewed to make sure you meet all the qualifications. Once you have qualified you will need to renew the wavier each year.
Not all Utah Companies will accept the Utah Work Comp Wavier. The bigger the company, the more likely they will be to require workers compensation coverage. Before performing work for a company make sure you have a clear understanding of their workers compensation requirements.
Your Anderson Insurance Group commercial agents are here to help you navigate the world of workers compensation and waivers so don’t hesitate to give us a call to discuss your options.