Workers Comp
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Workers' compensation in Oregon - Pie Insurance

Workers' compensation in Oregon - Pie Insurance

Oregon workers’ comp 101

Are small business owners mandated to obtain workers’ comp insurance in Oregon?

Owning a business for many people is a lifetime goal. Whether it’s a company that offers remodeling services or a restaurant that sells the best steaks in town, becoming an entrepreneur is at the top of the list for thousands of citizens in Oregon. The good news is that the state makes it reasonably easy to open a small business.

However, even though you can launch a business in a few simple steps, you’ll want to ensure you have everything in place to run your business efficiently. Along with accounting, marketing, sales and operations, you’ll also need the proper small business insurance. 

In Oregon, business owners need certain coverages like general liability insurance. Entrepreneurs also need to carry workers’ compensation insurance if they have any employees.

For small business owners who have operated a company without employees or are launching their first organizations, the following tips will help you get acquainted with the inner workings of workers’ compensation.

10 crucial workers’ comp facts for Oregon small business owners

  • Every company in the state of Oregon that doesn’t fall under the exemption list must carry workers’ comp if they have at least one employee
  • The following employees are exempt from workers’ comp and don’t need to be covered:
    • Employees who make less than $500 annually
    • Domestic household employees
    • Employees that work for a homeowner directly, such as maintenance workers or gardening staff
  • Workers’ comp may provide benefits to employees who are involved in an accident or who develop an illness, injury, or repetitive strain injury as a result of their job
  • Sole proprietors, corporate officers and limited liability company members are all excluded from the workers’ comp requirements
  • Oregon’s workers’ compensation insurance will provide qualifying injured employees with the following benefits:
    • Temporary or permanent total disability benefits
    • Temporary or permanent partial disability benefits
    • Death benefits
    • Funeral and burial expenses
    • Vocational assistance and ongoing physical therapy
  • All workers’ compensation claim disputes, disagreements, and settlements are handled by the Oregon Workers’ Compensation Board
  • Penalties for not obtaining workers’ compensation for your employees can result in a penalty equaling twice the amount of your standard premium or an ongoing daily fine of $250
  • If an employee passes away from a workplace injury, the following survivors are eligible to receive death benefits:
    • Financially dependent relatives
    • Spouse
    • Children up to the age of 18 or the age of 26 if they are taking higher education classes/GED courses
  • Small business owners have five days to report an employee’s injury to their insurance company if medical treatment is required
  • Once an injury occurs, an injured employee should report the accident to the company immediately. However, they have up to one year to report any injuries or illnesses that occur on the job site

Thanks for reading! Please note that this content is for educational purposes only. As laws change regularly, you should refer to your state legislation and/or an advisor for specific legal counsel. If you’re a small business owner, learn more about workers’ compensation insurance or check your current rate in 3 minutes.