Is Workers' Comp Required in Rhode Island?

Short answer: Yes. Rhode Island employers with one or more employees must carry workers' compensation, with limited exceptions for individual owners and partners covering themselves. Most corporate officers are included. Going without coverage can mean $1,000 per day in fines, felony charges, a $10,000 criminal fine, two years in prison and a Director order closing the business.

The one-or-more rule

The RI Department of Labor & Training employers page and the July 2025 Workers' Compensation employer brochure both state that employers with one or more employees are required to have coverage. Individual owners and partners are exempt. Most corporate officers are included under the Workers' Compensation Act.

Poster, injury reports and independent contractors

The state-required poster naming the employer's insurance company or adjusting company must be displayed in the workplace; insurers provide it. Failing to display the poster brings a $250 fine.

Employers must report a work injury to their workers' compensation insurer. The insurer then reports to DLT within 10 days if the injury needs medical care or causes the employee to miss three or more days of full wages. Fatal injuries must be reported within 48 hours. Even if the employer doubts the claim, the injury must still be reported to the insurer. A $250 penalty applies for failing to notify the insurer.

Independent contractors must file a Notice of Designation as Independent Contractor (DWC 11-IC) for each hiring entity. Without that filing, DLT will not treat the person as an independent contractor for workers' compensation purposes. The form is valid for one year or until withdrawn. Hiring entities should request proof of coverage when the contractor has employees, or a filed DWC 11-IC when the contractor has none. Forcing an employee to sign DWC 11-IC, or misrepresenting an employee as an independent contractor, can bring criminal prosecution.

Penalties for no coverage

According to DLT:

• $1,000 per day for each day without required workers' compensation insurance
• Possible felony charge; upon conviction, a $10,000 fine and two years in prison
• The DLT Director may close a business operating without required coverage

An employee of an uninsured employer who has filed the DWC-11 can sue the employer in civil court for damages from work-related injuries.

Finding and verifying coverage

Rhode Island has no state fund in the sense of a monopolistic insurer; employers purchase coverage in the commercial market. DLT's Workers' Compensation Insurance Coverage Verification tool, fed by NCCI data, lets the public check whether an employer has a policy or is a certified self-insurer. Fraud and compliance questions go to (401) 462-8100.

Fraud and compliance contacts

DLT's Fraud and Compliance Unit takes coverage and misclassification questions at (401) 462-8100 and [email protected]. The public coverage-verification tool, fed by NCCI, is the first place a hiring entity should look before a contractor starts work. Print or save the verification result with the project file.

Waivers versus independent-contractor filings

DLT also publishes waiver forms (DWC-11) separate from the independent-contractor designation. Use the form that matches the relationship. A waiver does not turn an employee into a contractor, and a DWC 11-IC filing is only for workers' compensation purposes—it does not decide tax status for the IRS or the RI Division of Taxation.

What employees can do if the employer is bare

DLT materials note that an employee of an uninsured employer who has filed the appropriate notice can sue the employer in civil court for damages from work-related injuries. That civil exposure sits beside the $1,000-per-day fine and potential felony charge. For owners, the cheapest path is almost always a timely policy—not litigating both a DLT enforcement action and an employee's lawsuit.

First report timelines in plain terms

Tell the insurer about the injury even when you dispute it. The insurer reports to DLT within 10 days when medical care is needed or the worker misses three or more days of full wages. Fatalities have a 48-hour clock. Missing the insurer notice can draw a $250 penalty separate from the much larger fines for having no policy at all.

Bottom line

One employee is enough in Rhode Island. Post the notice, report injuries promptly and treat independent-contractor paperwork as a compliance document, not a formality. See our workers' compensation insurance overview.

Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in Rhode Island.

Frequently asked questions

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.