Workers compensation policy information for the State of Alabama
for its Work Comp
Rules and Information
- District of Columbia
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Related Pages: More About Alabama Rules
Authority/State Rating Bureau: NCCI
National Council on Compensation Insurance (NCCI)
901 Peninsula Corporate Circle
Boca Raton, FL 33487-1362
Private Insurance: Allowed
State Fund: There is no state fund
Assigned Risk: Assigned risk placement is available if turned down by 2 standard market carriers. Coverage may be placed in the assigned risk plan by contacting a local agent.
Assigned Risk Contact Information: NCCI Holdings Inc. ; Alabama Assigned Risk Plan, Pool or Residual Market is administered by NCCI Holdings, Inc.
Numerical Exceptions: Employers with fewer than 5 employers, part or full time, are exempt.
Individual Waivers Allowed: No waivers allowed.
Small Deductible Program Details:
Allowed: Yes – Mandatory that insurance carriers make available
Deductible Range: $100 – $2,500
Type: Medical and Indemnity
Effect on Experience Rating: Net
Available In: Voluntary and Residual Markets
For More Information About How Deductible Programs Work
Sole Proprietor: Not required to cover themselves/can elect to be covered – If included a sole proprietors workers compensation payroll is set at $39,300 for rating purposes as of 3-1-2012, $40,100 as of 3-1-2013 and $41,000 as of 3-1-2014. $41,300 as of 3-1-2015. $43,300 as of 3-1-2017. $43,800 as of 3-1-2018. Notice of election form must be filed with state.
Partners: Not required to cover themselves/can elect to be covered – If included a partners workers compensation payroll is set at $39,300 for rating purposes as of 3-1-2012, $40,100 as of 3-1-2013, and $41,000 as of 3-1-2014. $41,300 as of 3-1-2015. $43,300 as of 3-1-2017. $43,800 as of 3-1-2018. Notice of election form must be filed with state.
Corporate Officers: Corporate officers are included/can elect to be exempted – If included, a corporate officers workers compensation payroll is banded between a min/max of $39,000/156,000 as of 3-1-2012, $39,000/161,200 as of 3-1-2013, $41,600/166,400 as of 3-1-2014, $800 per week/$3,200 per week as of 3-1-2015, $850 per week/$3,300 per week as of 3-1-2017 for rating purposes. $850 per week/$3,400 per week as of 3-1-2018 for rating purposes.
LLC Members: LLC Members are treated as corporate officers/They are included in coverage however may elect to be exempted. Rating payroll is same as corporate officers
Sole Proprietor and Partner Inclusion Form: Form WC14/15 ; Be sure to check with your insurance company for carrier specific forms they may use.
Corporate Officer / LLC Member Exclusion Form: As of August 1, 2017 members of a limited liability company can exempt themselves from coverage. Corporate officers already had that option. Alabama Act Number 2017-390 removes the requirement that a written notification for exemption be filed with the Department of Labor. Notification must still be provided to your insurance carrier; Also be sure to check with your insurance carrier for any company specific forms they may use.
Notes About Forms: Be sure to check with your insurance company for additional forms they may use.
Contractors: Those in single family dwelling construction with 5 or fewer employees can file for an exemption from coverage/this holds harmless anyone contracting with this type of contractor
Special Notes: If you have more than four (4) employees, full-time or part-time and including officers of a corporation or members of a LLC, the Alabama Workers’ Compensation Law requires you to have workers’ compensation insurance coverage. Officers and LLC Members may elect to exclude themselves by using form WC15 if their company is required to carry coverage. Sole proprietors and partners are excluded from coverage but may elect to include themselves by using form WC14.Employers of domestic employees, farm laborers, or casual employees and municipalities having a population of less than 2,000 (according to the most recent federal census) are not required to provide coverage but can elect to be covered by the provisions of the Alabama Workers’ Compensation Law.
Experience Rating Eligibility: Employers in Alabama become eligible for an experience modification rate or EMR when they meet one of these parameters:
- $10,000 in policy premium is generated during the last year or last two years.
- $5,000 is the average policy premium generated for more than two years.
Workers Compensation Subrogation: The Alabama statute regarding workers compensation subrogation issues is 25-5-11. Here’s a link to that statute:
Alabama Workers In Other States; Other States Workers In Alabama; Extraterritorial; Reciprocity; Non-Compliance: When an Alabama worker is working temporarily in another state, workers compensation coverage for that worker is governed by the extraterritorial provisions found in Alabama statutes. When allowed, extraterritorial provisions allow benefits for an injured worker to apply as if the worker was in their primary state. Not all states provide Extraterritorial Provisions. Reciprocity governs coverage for a worker from another state who is working in Alabama. Compliance of workers compensation laws varies from state to state and it is important for an employer with workers performing duties in other states to be aware of the specific state rules that govern their coverage. We’ve provided the below general information about extraterritorial and reciprocity as a basic guide. Please contact your state authority with your specific questions concerning this topic!
- Provisions: Yes
- Duration: Is not specific
- Allowed: Yes with a 90 day limit
- Specific Statute or Reference: 25-5-35
- For More Information Contact: Alabama Workers Compensation Compliance Section: 800-528-5166 or 334-242-2868
Regulated By: Alabama Department of Insurance
Department of Insurance
201 Monroe Street, Ste. 1700
Montgomery, AL 36130
Workers compensation statute can be found here:
Information on this page is provided only as a reference. While we strive to mantain accurate information on this site please realize workers compensation laws are complicated and subject to change at any time. No warranty as to the accuracy or completeness of this information is provided or to be implied. You must verify this data before use with the individual governing authority for this state. If you need help with a workers compensation problem or have a specific situation or question please contact our office. Otherwise please consult your states governing authority or an attorney in your state of residency for assistance.
WORKERS COMPENSATION CONSULTANT
Voice: (573) 489-8323
Fax: (573) 447-4998