Uninsured employer

Uninsured employer in the United States is a term to identify an employer of workers under circumstances where there is no form of insurance in place to provide certain benefits to those workers. More specifically, it is a term used in workers’ compensation law to identify an employer who does not have some form of worker’s compensation insurance or self-insurance coverage in effect at the time of, or during the time of, a claimed injury.

All States require that employers provide injury benefits coverage to their employees. These benefits are called workers’ compensation insurance coverage. This kind of coverage is to be distinguished from liability coverage, which covers the premises and the owner/occupier of the space from claims made by non-employees for injuries on the premises. It is also to be distinguished from health insurance, which covers only medical bills for non-work incurred conditions.

Protection can be accomplished through a traditional insurance policy for workers’ compensation coverage. Coverage can also be accomplished by way of compliance with various State self-insurance laws (usually reserved for larger employers) requiring substantial bonding and self-funding. For example, public agencies are usually permissibly self-insured.

When the employer has no specific insurance, or arrangement for the provision of workers’ compensation benefits to injured employees, the employer is then referred to as an uninsured employer.