Workers' Compensation in Georgia

Business owners frequently ask me questions regarding Workers' Compensation in Georgia. Common questions I hear are, "When do I have to carry work. comp.?" and "A client of mine is requiring I carry workers compensation, how can I get around that''? I have decided to write a short blog informing business owners of what is crucial to know regarding workers' compensation in Georgia.

First of all, workers' compensation was created just over 100 years ago to protect the business owner's assets in the event and employee was injured on the job. Workers Compensation is a tool that protects the business owner and the business' employees in the event of an accident on the job.

If a business has an employee, it is my recommendation that ALL businesses carry workers' compensation on that employee. The risks associated with not having coverage are simply too great. One word comes to mind, Bankruptcy, not to mention the the minimum $500 fine that are associated with busineeses that are in violation.

Now to what the state of Georgia requires for Georgia businesses. If you regularly employ three or more employees, part or full time, in Georgia, you are required to carry coverage.


If your business is incorporated, Georgia law considers members of corporations as ALL employees, including officers, all are included in the "three or more rule". It is also irrelevant that the officers of the corporation are exempt from coverage, they are also counted. Simply put, if you regularly have three people working in your corporation, you must have coverage in Georgia.

Sole Proprietorships/Partnerships

Interestingly enough, the opposite is true for sole proprietorships and partnerships regarding the "three or more rule". Owners of sole proprietorships and partnerships are employers according the Georgia law and are not counted in the "three or more rule".

In conclusion, to protect what business owners have worked so hard to build, it is my recommendation that any business that employees one or more employee MUST have workers' compensation coverage. The alternative can prove disastrous!

Feel free to contact me with any questions regarding workers' compensation or any other type of insurance product in Georgia, Tennessee and Alabama @ (706)226-1234, ext. 2.

D. Heath Patterson
(706)226-1234, ext. 2

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