Short answer: Georgia requires workers' compensation once a business regularly has three or more employees, full- or part-time, according to the State Board of Workers' Compensation. Corporate officers and LLC members count toward that total, even if they exclude themselves from coverage. Businesses with fewer than three employees aren't required to carry it, but they can buy it voluntarily.
The three-employee rule
The Georgia State Board of Workers' Compensation says any business with three or more employees, full- or part-time, who regularly work in the business must carry workers' compensation insurance.
Two details trip up small businesses:
- Part-time workers count. Three part-time employees trigger the requirement just like three full-time employees.
- Owners can count. Corporate officers and LLC members count toward the three, even when they've elected not to be covered themselves.
So a two-member LLC with one part-time employee has reached three and needs coverage.
Who isn't covered
Georgia's law excludes or allows exclusion of certain workers, including:
- Corporate officers and LLC members who properly elect to exclude themselves. They still count toward the threshold.
- Independent contractors who meet the legal test for independence.
- Farm laborers and domestic servants in many situations.
- Certain railroad and federal workers covered by other systems.
The panel of physicians
Georgia employers must post a panel of physicians, a list of doctors injured workers can choose from, in a prominent place. If the panel isn't properly posted, the employer can lose some control over medical treatment and the employee may be able to choose their own doctor. Your insurer can help you set up the panel and the required notice.
Penalties for going without
The Board's enforcement division investigates businesses that should have coverage but don't. Employers can be fined, and injured employees of uninsured employers may pursue the business, and in some cases its owners, for benefits and damages. A single serious injury can cost far more than years of premium.
Getting coverage
Georgia has a private market. Businesses that can't find a voluntary policy can apply to the Georgia assigned risk market. Large employers can self-insure with Board approval, and groups of employers in the same industry can form self-insurance funds.
Benefits in brief
Workers' comp pays authorized medical treatment, weekly income benefits when an injury keeps someone out of work, permanent impairment benefits and death benefits. Employer's liability coverage in the same policy responds to certain lawsuits tied to workplace injuries. See our workers' compensation insurance page.
Watch the headcount
Businesses near the threshold should track headcount carefully. Hiring one more part-time worker, adding an LLC member or bringing on seasonal help can push you to three. Having a policy in place before that happens avoids a gap. Many small businesses buy coverage voluntarily even below three employees, to protect against lawsuits and because clients and general contractors often require proof of coverage.
Common scenarios
You and your spouse own an LLC and hire one part-time cashier. That's three. You need coverage.
You have two employees and hire a third for the holidays. If the seasonal worker regularly works in the business, coverage is required.
A general contractor asks for your certificate of insurance. Even if you're below three employees, many contractors require coverage before you can work their jobs.
Key terms
- Regularly employed: workers who are part of the normal operation of the business.
- Panel of physicians: the posted list of doctors an injured worker can choose from.
- Assigned risk market: coverage for employers that can't get a voluntary policy.
- Self-insurance fund: a group of employers that pool risk with Board approval.
Questions to ask your broker
- Do my officers or LLC members count, and should they be covered?
- Is my panel of physicians posted correctly?
- Do clients or contractors require me to carry coverage even below three employees?
- How will seasonal hires affect my premium?
Bottom line
In Georgia, three regular employees, counting part-timers and owners, triggers the workers' comp requirement. Watch your headcount, post the panel of physicians, and consider coverage even before you're required to have it.
Contact Alishahi Insurance or call (877) 711-4545. See insurance in Georgia and our business owners policy (BOP) guide.
Frequently asked questions
Is workers' comp required in Georgia?
Yes, once a business regularly has three or more employees, full- or part-time.
Do LLC members count toward Georgia's three-employee rule?
Yes. Corporate officers and LLC members count, even if they exclude themselves from coverage.
What is a panel of physicians?
A posted list of doctors that injured workers can choose from. Georgia employers must post one.
Can I buy workers' comp with fewer than three employees?
Yes. Many small businesses buy it voluntarily.
What happens if a Georgia employer doesn't carry required coverage?
The Board can impose fines, and injured employees may pursue the business directly.
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.