Short answer: Missouri requires workers' compensation for employers with five or more employees, according to the Missouri Division of Workers' Compensation. Construction industry employers must carry coverage with one or more employees. Corporate officers count toward the total. Employers below the threshold can buy coverage voluntarily, and many do because clients and contractors require it.
The thresholds
The Missouri Division of Workers' Compensation, part of the Department of Labor and Industrial Relations, explains who must carry coverage:
| Type of employer | When coverage is required |
|---|---|
| Most employers | Five or more employees |
| Construction industry employers | One or more employees |
The Division's "Are You Covered?" guide also addresses common questions about who counts.
Who counts
- Full-time and part-time employees generally count toward five.
- Corporate officers are generally employees under the law and count toward the total, though officers in some situations may be able to reject coverage.
- Family members on payroll count.
- Independent contractors don't count, but Missouri looks at the real working relationship, not the label.
Construction: one employee triggers coverage
Construction employers face the stricter one-employee rule because injuries are more common and more severe. Missouri law also makes general contractors potentially responsible for the injured employees of uninsured subcontractors, so contractors routinely require certificates of insurance.
Exempt or excluded workers
Missouri excludes some workers, including certain farm laborers, domestic servants in private homes, qualified real estate agents and direct sellers, and some volunteers. Owners of sole proprietorships and partners aren't automatically covered for themselves but can elect coverage.
Penalties for going without
Failing to insure when required is a crime in Missouri. The Division's fraud and noncompliance unit investigates, and penalties can include fines and, for knowing violations, criminal charges. An injured employee of an uninsured employer may also sue the employer directly, and the employer loses the protection of the exclusive remedy rule.
Buying coverage in Missouri
Missouri has a private market. Employers that can't get coverage voluntarily can use the Missouri assigned risk plan. Larger employers can self-insure with approval, and groups of similar employers can form group self-insurance trusts.
What workers' comp covers
Benefits include medical care, temporary total disability, permanent partial and total disability, and death benefits for job-related injuries and illnesses. Employer's liability coverage (Part Two) responds to certain lawsuits. See our workers' compensation insurance page.
Below the threshold
With fewer than five employees outside construction, coverage is optional. Reasons to buy it anyway:
- an injured employee can otherwise sue you directly;
- clients, landlords and general contractors often require it; and
- coverage generally isn't retroactive, so having it in place before you hit five avoids a gap.
Reporting injuries
Missouri employers must report qualifying work injuries to their insurer promptly, and insurers file the required reports with the Division. Post the Division's notice so employees know how to report an injury and where to get help.
Common scenarios
You run an accounting office with four employees and hire a fifth. Coverage is now required.
You're a drywall contractor with one employee. Construction rules apply. You need coverage.
You hire a subcontractor without a certificate of insurance. If the subcontractor's worker is injured, you could be responsible.
Your corporation has two officers and three employees. Officers generally count, so you're likely at five.
Key terms
- Construction industry employer: a business in construction, required to cover employees from the first hire.
- Exclusive remedy: workers' comp generally replaces lawsuits against an insured employer.
- Group self-insurance trust: employers pooling risk with state approval.
- Assigned risk plan: coverage of last resort.
Questions to ask your broker
- Do my officers count toward five?
- Am I a construction industry employer?
- How should I verify subcontractor certificates?
- Should I buy coverage before I'm required to?
Bottom line
In Missouri, five employees triggers the requirement for most businesses, and one employee for construction. Count officers and part-time workers, and collect certificates from subcontractors.
Contact Alishahi Insurance or call (877) 711-4545. See insurance in Missouri and our business owners policy (BOP) guide.
Frequently asked questions
Is workers' comp required in Missouri?
Yes, for employers with five or more employees, and for construction employers with one or more.
Do corporate officers count in Missouri?
Generally yes. Officers are generally treated as employees and count toward the total.
Is it a crime to not carry workers' comp in Missouri?
Yes. Failing to insure when required can lead to fines and criminal charges for knowing violations.
Can I buy workers' comp with fewer than five employees?
Yes. Coverage is available voluntarily.
Are general contractors responsible for subcontractors?
They can be responsible for injured employees of uninsured subcontractors.
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.