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What Happens If I Don’t Carry Workers Comp?
Operating without required workers comp exposes you to stop-work orders, personal liability for injury costs, criminal charges in some states, and loss of your contractor license.
- ✓Stop-work orders can shut down every active job site immediately
- ✓Fines can equal up to 2x the premium you should have paid
- ✓You’re personally liable for all injured worker medical bills and lost wages
- ✓Some states treat violations as criminal misdemeanors or felonies
✓ 20+ Years Experience
✓ Same-Day COI
✓ Licensed All 50 States
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The Immediate Consequences of Non-Compliance
Every state has a workers comp enforcement mechanism, and enforcement actions for non-compliant contractors are active and real. The most immediate consequence is a stop-work order — an order from the state requiring you to cease all construction operations until you obtain coverage. This applies to every active job site, not just the one where a violation was discovered.
Financial penalties vary by state but are uniformly severe. Florida charges two times the amount of premium that should have been paid — calculated retroactively from the first day coverage should have been in effect. California imposes penalties of up to $100,000 for willful uninsured employers. New York can impose penalties of $2,000 for the first ten days of non-compliance plus $1,500 per day thereafter.
After an injury, you become personally liable for every medical bill, all wage replacement payments, and any disability benefits owed to the injured worker. These costs can easily exceed $100,000 for a serious injury — without any cap, because there’s no policy to limit your exposure.
Long-Term Consequences
Beyond the immediate fine and stop-work order, a workers comp violation can result in suspension or revocation of your contractor license. In most states, a valid workers comp policy (or a valid exemption) is a condition of contractor license maintenance. An enforcement action triggers a license review.
Criminal consequences exist in some states. Florida, California, and several others treat workers comp fraud — which includes operating as an employer without coverage — as a criminal offense. Penalties can include felony charges, restitution, and incarceration in the most severe cases.
The injured worker can also pursue a civil lawsuit against you personally, claiming damages beyond what workers comp would have provided. Without the exclusive remedy protection that a workers comp policy provides, your personal assets — including your home, vehicles, and savings — are exposed to judgment.
Don’t Risk a Stop-Work Order — Get Covered Today
We bind workers comp coverage same day. The cost of coverage is always less than the cost of a single enforcement action — or a single uninsured claim.