Employees not only deserve a safe workplace, but they are entitled to a safe workplace. Under state and federal law, employers must provide employees a workplace free of known health and safety hazards. If an accident does occur, a Workers’ Compensation Insurance Policy from Liveoak Agency, Inc. will be key in providing guidance to the employer and protection to the injured employee.

Who Needs Workers’ Compensation Insurance?

Per the Alabama Department of Labor, any business that has five or more employees, other than contractors, is required by law to have workers’ compensation coverage. The term “employee” includes:

  • All full or part-time employees;
  • All officers of the corporation – with the option to exclude yourself;
  • All members of an LLC – with the option to exclude yourself.


Employers are free to choose the best way for their business to cover workers’ compensation liability requirements. A Liveoak agent can explain the pros and cons of Alabama’s coverage options and answer any questions you might have.

What Does Workers’ Compensation Cover

  • Workers’ compensation insurance protects the business by limiting civil liability and specified damages while providing employees with a remedy for occupational disease and injuries sustained on the job. Examples of employee benefits include medical coverage and wage compensation.
  • In exchange for these benefits, employees cannot pursue any legal claims against their employer regarding an incident. While the law allows quite a bit of leeway as to the method of insurance a business selects, the available options are quite strict with their criteria in granting a policy. An expert Liveoak agent can discuss all of these options with you, so can better select the best allowable policy for your business.


What are the Penalties for Non-Compliance?

An employer who fails to secure the appropriate workers’ compensation coverage is:

  • Guilty of a misdemeanor;
  • Subject to a fine of not less than $100 and no more than $1,000;
  • Liable for two times the amount of employee compensation;
  • Subject to additional civil penalties of up to $100 for each day the employer remains in noncompliance.


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