Workers comp coverage required in Connecticut
Mandatory for all employers with one or more employees. Verified 2026-05-09.
Who must carry workers comp in Connecticut?
Connecticut workers compensation coverage is required Mandatory for all employers with one or more employees.
The threshold language matters: states write the rule slightly differently. Some count any worker, some count only W-2 employees, some count owners separately, some have industry-specific exemptions (agriculture, domestic service, casual labor). For a Connecticut employer with a non-trivial workforce, the safest default is: assume coverage is required and confirm with the state department of insurance or a local agent.
How the threshold interacts with 1099s and subs
Independent contractor status is determined by a multi-factor test, focusing on control and independence. General contractors are liable for injuries to employees of uninsured subcontractors.
Penalty for going without
Failure to carry workers' compensation insurance can result in fines, imprisonment, and personal liability for employee injuries. The financial penalty is usually a fraction of the human cost: an injured employee at an uncovered employer can sue directly under tort law instead of being limited to the workers comp benefit, exposing the owner to lost-wage damages, pain and suffering, and punitive damages without the corporate veil.
Related reading
FAQs
Who has to carry workers comp in Connecticut?
Mandatory for all employers with one or more employees.
When does the requirement kick in for a new Connecticut employer?
The clock starts on the first day the first qualifying employee is on the books. Connecticut does not have a grace period for new employers, so a policy needs to be bound on or before the first hire date. Some agents can issue same-day binders for low-risk class codes.
What is the penalty for not having workers comp in Connecticut?
Failure to carry workers' compensation insurance can result in fines, imprisonment, and personal liability for employee injuries.
Do 1099 contractors trigger the coverage requirement in Connecticut?
Independent contractor status is determined by a multi-factor test, focusing on control and independence.
Are subcontractors counted toward the threshold in Connecticut?
General contractors are liable for injuries to employees of uninsured subcontractors.
What happens if I am audited and found non-compliant in Connecticut?
Connecticut typically issues a stop-work order, assesses back premium for the period of non-coverage, and adds penalties on top. Specifically: Failure to carry workers' compensation insurance can result in fines, imprisonment, and personal liability for employee injuries. Severe or repeat violations can lead to criminal charges and personal liability for the business owner, separate from the corporate veil.