Do I need workers' comp insurance?
Pick your kind of work and your state. We show what the law generally requires, quote the rule we read it from, and give you the state office that can confirm it.
Yes, from the first day laborer you hire.
Construction employers in Missouri are generally required to carry coverage from the first worker.
When the law says employee, that can include the day laborer you hire, even one paid by the day or on a 1099. The state's own test decides who is covered, not the paperwork.
The rule we read
"Construction industry employers who erect, demolish, alter or repair improvements shall be deemed an employer for the purposes of this chapter if they have one or more employees."
Mo. Rev. Stat. § 287.030 · Verified Aug 28, 2026
Confirm with the state
Missouri Division of Workers' Compensation
800-775-2667
General information, not legal advice and not insurance advice. Exceptions apply to nearly every rule here.
What can change this answer
- Sole proprietors and partners. Not covered themselves unless they elect coverage.
- LLC members. Presumed covered unless they opt out.
- Corporate officers. Treated as workers of the corporation. Confirm the current opt out procedure with the Division before you count on it.
- Family. A worker related to the employer within the third degree of affinity or consanguinity counts toward the five worker total.
- Contractors. An employer who has work done under contract on or about its premises, as part of the usual business it carries on there, can be deemed the employer of the contractor's workers. On a construction project the independent contractor is deemed the employer of its subcontractors' workers.
- Worker status. Whether a day laborer is covered is decided by the state's own test, not by the agreement between the parties or the 1099.
If an employer does not carry it
An employer who knowingly fails to insure its liability is guilty of a class A misdemeanor and is liable to the state for up to three times the annual premium it would have paid, or up to fifty thousand dollars, whichever is greater. A later violation after a conviction is a class E felony.
Coverage by choice
An exempt employer can come under the law by buying and accepting a valid workers' compensation policy or endorsement, or by written notice to a group self insurer. The election runs while the policy is in force and ends on cancellation, nonrenewal or written notice.
Common questions
Does a day laborer on a 1099 need workers' comp?
Often yes. Most states use their own test to decide who the law covers, not the paperwork, so paying a day laborer by the day or on a 1099 does not by itself put them outside workers' comp. Check your state above.
How many workers before workers' comp is required?
It depends on the state. Some states require it from the first worker, others start at three, four or five, some measure payroll instead of people, and construction often has a stricter rule. Pick your state above for its number.
What happens if I do not carry workers' comp?
Most states charge fines that grow by the day, some can stop your work or close the business, a few treat it as a crime, and an injured worker can often sue you directly. The exact penalty is listed with each state's answer above.
Is workers' comp required in every state?
No. Texas and South Dakota generally leave it up to the employer, and Wyoming decides by industry rather than head count. Every other state requires it once you cross that state's own line.
How we source this
Every answer names the state statute or the state agency page it was read from, with the date it was checked, and quotes that source rather than paraphrasing it. Law firm articles and broker pages are never used as a source. Where a rule could not be settled from a primary source, the card says so instead of guessing. Records are reviewed twice a year, in January and July, because most changes take effect with the new year.
This page is general information about state workers' compensation requirements. It is not legal advice, it is not insurance advice, and it does not create an attorney client relationship. Requirements change, and exceptions apply to nearly every rule described here. Confirm your situation with your state's workers' compensation agency or a licensed professional before you act on it.
