Small Business Coverage and Peace of Mind
Small businesses play a crucial role in Utah’s economy. In 2018, small businesses employed nearly half of all private-sector workers and represented 99.3% of all employers within the state. Additionally, some of the top industries driving small business employment in the state included Accommodation and Food Services as well as Health Care and Social Assistance.1
How Does Workers’ Compensation Work in Utah?
Utah workers’ compensation is a no-fault insurance system. Employees who suffer an injury or occupational disease in the workplace are compensated for medical bills, lost wages and permanent impairments resulting from their injuries.
Employers in Utah can purchase workers’ compensation insurance from a carrier authorized by the Utah Insurance Department, purchase coverage from the Workers’ Compensation Fund (WCF) or obtain permission from the Industrial Accident Division to “self-insure.”2 To learn more, see the Employers’ Guide to Workers’ Compensation from the Utah Labor Commission.3
What are the Utah Workers’ Compensation Benefits?
Utah workers’ compensation benefits are the exclusive remedy for work-related injuries or occupational disease. Under Utah workers’ compensation law, injured employees receive the defined medical and disability benefit provided by the workers’ compensation system. In return for providing these benefits, employers receive exclusive remedy protections, meaning, in most situations, employees cannot sue employers for damages for workplace injuries.4
What are the Utah Workers’ Compensation Insurance Requirements?
Every employer in Utah, with a few exceptions, is required by law to provide workers’ compensation coverage for its employees.
Failure to obtain workers’ compensation insurance may result in penalties of at least $1,000, injunctions that prohibit continued business operations and loss of the protection of the “exclusive remedy.”5
Once a workers’ compensation insurance policy has been purchased, employers must post notice that they are in compliance with Utah workers’ compensation law. These notices must be placed in conspicuous locations in the workplace, such as an employee break room or common-area bulletin board. Employers can find a copy of this notice on the state Labor Commission website.
What is Utah Workers’ Compensation Law?
Under Utah workers’ compensation law, almost all employers in the state are required to have workers’ compensation insurance. Businesses with no employees may be exempt, as noted in the same Employers’ Guide to Workers’ Compensation. The law also prohibits the cost of workers’ compensation coverage from being passed on to employees, according to the Utah Labor Commission’s Employees’ Guide to Workers’ Compensation.6
The Utah workers’ compensation statute pertains to independent contractors. Under the statute, employers who hire a contractor must verify that the contractor has complied with workers’ compensation coverage requirements. If the employer hiring the contractor fails to verify coverage and the contractor does not have insurance, the hiring employer is liable for the employees’ workers’ compensation claims costs.7
How do I File a Workers’ Compensation Claim in Utah?
Knowing what to expect when an injury occurs and how to file a workers’ comp claim in Utah is important.
After an injury occurs, the employer must report the injury within seven days to their workers’ compensation insurance carrier, who in turn electronically reports the injury to the Labor Commission. Employers should share a copy of the report with the injured employee. Starting this process immediately after an incident helps allow the injured worker to receive the medical care needed to return to work as soon as possible.8
The insurance carrier will open a claim for benefits once it has received a report from the employer or the “physician’s initial report of injury” from the doctor who treated the employee.
EMPLOYERS offers a claims kit including links to the necessary forms for Utah businesses here.
EMPLOYERS Insurance in Utah
EMPLOYERS is America’s Small Business Insurance Specialist®, providing Utah-based businesses with affordable workers’ compensation insurance. The value-added services that EMPLOYERS offers its policyholders include Loss Control Services, Anti-Fraud Programs, and Managed Care Services.
Utah Workmans’ Comp Coverage You Need
Interested in learning more about how EMPLOYERS can help your Utah business? Request a quote today for workers’ compensation insurance from EMPLOYERS.
Thousands of small businesses trust EMPLOYERS for providing cost-effective workers’ compensation insurance for over a century. With our competitive pricing, financial stability and dependability, claims service, safety training and risk advisory programs, EMPLOYERS remains focused on keeping America’s small businesses not only working, but working safely.
1. “2018 Small Business profile, Utah.” SBA Office of Advocacy 2018. https://www.sba.gov/sites/default/files/advocacy/2018-Small-Business-Profiles-UT.pdf
2. “Workers’ Compensation.” Utah Insurance Department. https://insurance.utah.gov/consumer/other/workers-comp
3. “Employee’s Guide to Workers’ Compensation,” Utah Labor Commission, 2013. https://laborcommission.utah.gov/divisions/industrial-accidents/employers/employers-guide-to-workers-compensation/
4. “Employee’s Guide to Workers’ Compensation,” Utah Labor Commission, 2013. https://laborcommission.utah.gov/divisions/industrial-accidents/employers/employers-guide-to-workers-compensation/
5. “Workers’ Compensation.” Utah Insurance Department. https://insurance.utah.gov/consumer/other/workers-comp
6. “Employee’s Guide to Workers’ Compensation,” Utah Labor Commission, 2013. https://laborcommission.utah.gov/divisions/industrial-accidents/employers/employers-guide-to-workers-compensation/
7. “Employee’s Guide to Workers’ Compensation,” Utah Labor Commission, 2013. https://laborcommission.utah.gov/divisions/industrial-accidents/employers/employers-guide-to-workers-compensation/
8. “Employee’s Guide to Workers’ Compensation,” Utah Labor Commission, 2013. https://laborcommission.utah.gov/divisions/industrial-accidents/employers/employers-guide-to-workers-compensation/