Insurance Myths

Myth #17: If I’m not at fault in an accident, the other person will pay.
This assumes he has coverage. Some people have no insurance or only minimal insurance that won’t cover damage they cause to others. Even if you sue them, you may not be able to recover damages. The best way to protect yourself is having good limits on your own policy for the specific parts that cover being hit by an “uninsured" or “underinsured” driver.

Workman's Comensation Insurance

Who needs Workmans' Compensation Insurance coverage?

Any business that has five (5) or more employees is required by law to have workers' compensation coverage. In Alabama the term employee includes all full or part-time employees, officers of a corporation or members of an LLC. You may purchase workers' compensation coverage from an independent insurance agency. The State of Alabama does not sell workers' compensation insurance.

In Alabama who can exempt themselves from Workers Compensation Insurance?

Employers who have less than five (5) employees. Also, 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 workers' compensation insurance coverage.

Does Alabama workers compensation law have specific requirements for subcontractors/contractors and sole proprietors?

Sub-contractors/contractors with less than five (5) employees who work directly for a Residential Builder in the construction of single-family dwellings are exempt for one year. The general contractor can charge the sub-contractor for their workers' compensation insurance premium. However, an employer may never charge an employee for workers' compensation coverage.

Sole Proprietors and Partners are excluded from having to carry workers' compensation insurance, unless they file an election to accept workers' compensation coverage.