What workers compensation do law firms need?

Workers compensation is a mandatory coverage in nearly every state for businesses with employees, and law firms are no exception. Even though legal work is not physically hazardous, workplace injuries occur in office environments more frequently than many attorneys realize. Slip-and-fall accidents, repetitive stress injuries from extended computer use, injuries from lifting file boxes or office equipment, and automobile accidents during business travel are all compensable under workers compensation.

Workers compensation provides two primary benefits: coverage of medical expenses for work-related injuries and illnesses, and replacement of a portion of lost wages during the recovery period. The coverage is no-fault, meaning employees receive benefits regardless of who caused the injury, and in exchange, employees generally cannot sue the employer for workplace injuries. This exclusive remedy provision protects the firm from potentially larger personal injury lawsuits by injured employees.

Premiums are calculated based on the firm's payroll, the classification codes assigned to different employee roles, and the firm's experience modification rate. Office-based classifications like clerical staff and attorneys carry relatively low rates compared to manual labor classifications. A small law firm with $500,000 in annual payroll might pay $1,500 to $4,000 annually for workers compensation, depending on the state and experience modifier.

Partners and firm owners may or may not be required to be included in the workers compensation policy depending on state law and the firm's legal structure. In some states, partners in a partnership can opt out of coverage, while officers of a professional corporation may be required to be included. Review your state's requirements with your insurance broker and consider whether opting out is wise given the loss of medical and wage replacement benefits that coverage provides.