Not long ago, multiple workers’ compensation insurance carriers served firearms manufacturers and retailers. However, changes in agreements between insurance and reinsurance carriers drastically reduced the market. Today, most firearms businesses have relied on state insurance pools for their workers’ compensation coverage.
At ASI Insurance, we’ve worked tirelessly to identify carriers that not only want to insure the firearms industry but also have the capacity to do so. We now offer new workers’ compensation markets across the country. Our goal is to represent all carriers with an appetite for this industry while ensuring they remain accountable to our clients. We can also provide coverage for importers, exporters, and distributors in all 50 states.
What Is Workers Compensation Insurance?
Employers are legally required to maintain safe workplaces, yet accidents can still happen. Workers’ compensation insurance provides protection when they do.
Workers’ compensation serves two main purposes:
- Employee Protection – It ensures injured workers receive medical care and compensation for a portion of their lost income while they recover.
- Employer Protection – It generally shields employers from lawsuits filed by employees injured on the job.
Benefits are provided regardless of fault. If a worker dies while on the job, workers’ compensation provides death benefits for their dependents.
Each State Is Different
Workers’ compensation programs are governed by state laws and court decisions. No two states have the same rules, so coverage requirements, benefit amounts, and medical protocols vary.
States determine:
- How benefits are calculated and delivered
- Whether coverage is offered by private insurers, state-run agencies, or both
- Which injuries and impairments are covered
- How claims and disputes are handled
- Strategies to control costs, such as limits on certain medical treatments
If your business expands into another state, you may face completely different requirements. The information here outlines the general features of workers’ compensation programs.
What Injuries Are Covered?
Workers’ compensation generally covers injuries sustained on the job or while performing work-related tasks, regardless of location. Common examples include:
- Traffic accidents – The leading cause of workers’ compensation death claims, occurring when employees drive for work purposes (in company or personal vehicles). Commuting to and from work is not covered.
- Workplace violence – Injuries from assaults or security incidents.
- Natural disasters and other events – Injuries caused by fire, storms, or other workplace hazards.
- Occupational illnesses – Conditions caused by toxic chemicals, repetitive stress, or long-term exposure to workplace hazards.
Do I Have to Buy Workers Compensation Insurance?
Requirements vary by state, but here are the general rules:
- Sole proprietors and partners – Often not required to carry coverage unless they employ others. Many states allow optional coverage for owners.
- Employee definition – Includes anyone performing work at the direction of the employer, including minors and non-citizens.
- Small business exemptions – Some states exempt businesses with only a few employees. The threshold is usually three, four, or five employees. Texas is the only state where coverage is fully optional.
- Family members – Immediate family (spouse, children, parents) may sometimes be excluded, but other relatives are usually counted as employees.
- Independent contractors – Many states consider uninsured contractors or their employees as your employees for liability purposes. Larger companies often require proof of workers’ compensation from all contractors and subcontractors.
Even if coverage is optional, a single serious injury or fatality could bankrupt a small business. Workers’ compensation provides predictable protection against this risk, allowing employers to budget for safety while protecting employees.