You and your assistant try to scoot a solid oak armoire to the other wall. Snap. Your assistant drops to the floor with a herniated disc. She needs surgery ($40,000) and 6 months off. You don’t have Workers Comp because she’s “part-time.”
Key Takeaways
- The “Part-Time” Myth: Workers Comp is required for part-time employees in almost every state. There is no “hour threshold” for injury coverage.
- The “Heavy Lifting” Exclusion: Your General Liability policy strictly excludes employee injuries. It pays $0 for her back.
- State Fines: Operating without WC is a crime. You face fines ($1,000/day in some states) plus the full cost of her surgery and wages.
- Scope of Work: Moving heavy furniture pushes you from “Organizer” code (clerical/light duty) to “Mover” code (high risk). You might be misclassified.
The “Why” (The Trap): The Exclusive Remedy
Workers Compensation is the “Exclusive Remedy.” This means if you have it, an employee generally cannot sue you for negligence.
The Trap: If you don’t have it, you lose that protection. The employee can sue you in civil court for unlimited damages (pain and suffering), plus the state will penalize you. Relying on her health insurance is a gamble—her insurer will ask “Did this happen at work?” When she says yes, they deny the claim and subrogate against you.
The Investigation: The Cost of Lifting
I compared WC costs for Organizers vs. Movers.
1. State Fund (Organizer Code 8742 – Sales/Clerical)
- Cost: Low (~$0.50 per $100 payroll).
- The Risk: If an auditor sees you moving furniture, they will reclassify you to “Movers.”
2. Private Carrier (BiBERK – Movers Code)
- Cost: High (~$8.00 per $100 payroll).
- The Reality: If you move furniture, this is the correct code.
3. Hiring Movers
- My Analysis: Cheaper to hire insured movers for the heavy stuff than to pay “Mover” WC rates year-round.
Comparison Table: Injury Costs
| Scenario | With Workers Comp | Without Workers Comp |
| Medical Bills ($40k) | Covered | You Pay |
| Lost Wages ($20k) | Covered | You Pay |
| Lawsuit Defense | Covered | You Pay |
| State Fines | None | $10k – $50k |
Step-by-Step Action Plan
- Stop Moving Furniture: Update your contract: “Organizer does not move items over 25 lbs.” Buy sliders, but realistically, hire muscle.
- Buy a “Ghost Policy” or Min Premium WC: Even if you have no employees (just yourself), sometimes you need this for contracts. If you have any helpers, get a real policy.
- Safety Training: Teach proper lifting. Document it.
- Classify Correctly: Ask your broker if you are 8742 (Sales) or 9014 (Janitorial). Don’t lie about duties.
FAQ Section
I’m a solo LLC. Do I need WC for myself?
Usually optional for owners. But if you get hurt, your health insurance works. The risk is when you hire a “helper” for a day.
Can I use a 1099 contractor to avoid this?
If you direct their work (“Lift this end”), they are an employee in the eyes of the WC board.
What about ‘Accident Insurance’?
Aflac/Accident policies help, but they do not satisfy the legal requirement for Workers Comp.