Owning a small business in Missouri means you wear a lot of hats—manager, marketer, customer service rep, and often, problem solver-in-chief. But one of the smartest moves you can make to protect your business and your team is having workers’ compensation insurance in place.
If you have employees—even just one—you likely need it. In Missouri, workers’ comp isn’t just a good idea, it’s often the law.
What Is Workers’ Compensation Insurance?
Workers’ compensation insurance helps cover medical expenses, lost wages, rehabilitation, and even death benefits if an employee gets hurt or sick on the job. It’s protection for both your workers and your business.
A Quick Example:
If an employee falls from a ladder while doing electrical work, workers’ comp can help pay their hospital bills and replace lost income while they recover. Without it, your business could be responsible for those costs out of pocket.
Missouri Workers’ Comp: What the Law Says
In Missouri, most businesses with five or more employees are required to carry workers’ compensation insurance. But there’s an exception for construction businesses: If you’re in construction, you must carry coverage with just one employee, including part-timers and subcontractors.
You can learn more at the Missouri Division of Workers’ Compensation website.
Why Is Workers’ Comp So Important?
- It Keeps You Legal
Failing to carry workers’ comp insurance in Missouri can lead to fines, penalties, and even criminal charges. Not worth the risk! - It Protects Your Business
Medical costs and lawsuits from a workplace injury can easily bankrupt a small business. Workers’ comp protects you from most legal claims related to job-related injuries. - It Supports Your Team
Knowing they’re protected gives your employees peace of mind—and builds loyalty. That kind of workplace culture is priceless.
Missouri Stats to Know
- According to the U.S. Bureau of Labor Statistics, there were over 47,000 nonfatal workplace injuries and illnesses in Missouri in a recent year.
- The average workers’ comp claim in the U.S. costs $41,000, according to the National Safety Council.
- Most Missouri small businesses pay between $0.75 to $2.74 per $100 in payroll, depending on their industry and claims history.
What Happens If You Don’t Have Workers’ Comp?
In Missouri, failing to carry required coverage can lead to:
- A $50,000 fine, plus a penalty of three times the amount of the premium you would have paid
- Lawsuits from injured employees
- Potential business closure
How Much Does Workers’ Comp Cost in Missouri?
Your cost depends on:
- Your business type and risk level
- Total payroll
- Past claim history
- Classification codes assigned to your employees
For example, a Missouri marketing agency with four employees will pay less than a roofing company with ten workers. But no matter your industry, having the right policy in place is always more affordable than the alternative.
Let’s Make Sure You’re Covered
At Smart Insurance Agency, we love to help small business owners understand their coverage needs—and stay compliant with state laws. We’ll shop multiple carriers to find a policy that fits your business and your budget.
✅ Local expertise
✅ Friendly, honest guidance
✅ Flexible coverage for growing teams
Ready to get started or just have a question?
Give us a call or request a quote online. We’re here to help protect what you’ve worked so hard to build.