Short answer: Yes. Connecticut requires any employer that uses the services of one or more employees for pay to secure workers' compensation, through insurance or approved self-insurance, according to the Workers' Compensation Commission. Sole proprietors and partners must elect in to cover themselves, and some owners can elect out, but employees must always be covered.
Who must insure
Connecticut's Workers' Compensation Act (Chapter 568) applies to employers that use the services of one or more employees for pay. The Workers' Compensation Commission's insurance overview says employers can comply by buying insurance, qualifying as a self-insurer, or joining an approved group or mutual self-insurance arrangement.
Owners
- Sole proprietors and partners aren't automatically covered and must elect in to cover themselves.
- Corporate officers and LLC members generally are covered, but qualifying owners can elect out for themselves.
None of these choices removes the duty to cover employees.
Enforcement and stop-work orders
Under §31-288, the Labor Commissioner can issue a stop-work order at a job site when an employer fails to carry the required coverage. The same applies when an employer knowingly misclassifies employees as independent contractors or misstates its employee count to cut premiums. Continuing to work under a stop-work order adds penalties, and the statute also sets civil penalties for failing to insure that rise with the number of employees.
Misclassification is a separate risk
Connecticut targets premium fraud directly. Calling a worker a 1099 contractor to lower a workers' comp bill can bring a stop-work order and daily penalties even if no one gets hurt. If you aren't sure how to classify someone, ask before you sign the contract.
Bottom line
In Connecticut, one paid employee means you need coverage, and misclassifying workers carries its own penalties. See our workers' compensation insurance overview.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in Connecticut.
Frequently asked questions
Is workers' comp required in Connecticut for one employee?
Yes. Employers using one or more employees for pay must secure coverage.
Are sole proprietors covered in Connecticut?
Not automatically. Sole proprietors and partners must elect in to cover themselves.
Can Connecticut officers opt out?
Qualifying corporate officers and LLC members can elect out for themselves, but not for employees.
Can Connecticut issue a stop-work order?
Yes. The Labor Commissioner can stop work for missing coverage or knowing misclassification of employees.
How can Connecticut employers comply?
By buying insurance, qualifying to self-insure, or joining an approved group self-insurance arrangement.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.