If you operate a business in Missouri—with just one construction worker or a full office team—you need to understand Missouri workers comp insurance. The rules are strict, the costs are rising, and penalties can be severe. Whether you’re running a retail shop in Springfield or a roofing crew in St. Louis, workers’ compensation is not optional.
This 2025 guide explains who needs coverage, what it includes, how much it costs, and how to stay compliant with Missouri workers comp laws.
Who Needs Workers Comp Insurance in Missouri?
Under Missouri law (RSMo Chapter 287), most employers must carry coverage if they employ five or more people. This includes part-time, full-time, family members, and seasonal workers. Corporate officers count, too, but they can elect to opt out of coverage under specific conditions.
Construction businesses face tougher rules: If you run a construction firm, you’re required to carry workers comp if you have just one employee. These rules apply to contractors in building, roofing, demolition, installation, or excavation.
There are some Missouri workers comp exemptions:
- Sole proprietors without employees
- Partners and some corporate officers (must opt out)
- Farm laborers and domestic workers in private homes
- Real estate agents and direct sellers
However, exemptions don’t mean risk-free. A single injury could result in lawsuits or personal liability if you’re not covered.
The Missouri Department of Labor and Industrial Relations oversees compliance. Penalties for operating without insurance can include:
- Fines up to three times the annual premium, capped at $50,000
- Misdemeanor charges for first offenses
- Felony charges for repeat violations
Key Benefits of MO Workers Comp Insurance
If an employee gets hurt on the job, Missouri workers comp insurance protects both them and your business. These are the main benefits:
Medical Coverage: Hospital visits, surgeries, medications, and physical therapy are paid.
Temporary Total Disability (TTD): Two-thirds of lost wages while the worker recovers.
Permanent Partial Disability (PPD): Compensation based on injury type using a scheduled chart.
Permanent Total Disability (PTD): Lifetime wage replacement if the injury prevents all work.
Death Benefits: Includes burial expenses and wage support for surviving dependents.
It’s important to note that Missouri law gives the employer the right to choose the healthcare provider for the injured worker. The employer or their insurer will direct the injured employee to an authorized medical provider. An employee may seek medical treatment from a physician of their own choosing, but it will be at the employee’s own expense unless authorized by the employer/insurer or later ordered by the Division.
Missouri has a 3-day waiting period for wage benefits. Employees must be out 14 days before recovering benefits for the first 3 days, but they get paid for those initial days if they’re out more than 14 days total.
Want a simple breakdown of how workers’ comp works? Read our guide: Workers’ Comp Insurance Basics – What You Should Know.
Missouri Workplace Injury Benefits: Common Claims
Injuries vary by job type, but these are the top claims seen statewide:
Construction workers compensation Missouri: Falls from ladders, power tool injuries, and heavy equipment accidents on job sites.
Retail & Office Settings: Slips and falls, lifting injuries, and repetitive strain like carpal tunnel.
Manufacturing & Warehouses: Crush injuries, exposure to chemicals, and repetitive motion stress.
Transportation/Delivery: Roadway accidents on Missouri interstates like I-70 and I-44.
Extreme weather in Missouri also plays a role. Icy sidewalks in winter and tornados in spring increase workplace injury risks—especially in outdoor or mobile job settings.
Missouri Workers Comp Costs: What You'll Pay
Rates vary based on your:
- Industry classification code
- Payroll size
- Experience Modification Rate (EMR)
- Claims history
- Safety protocols
- Location
Workers’ compensation costs in Missouri vary significantly based on industry classification, payroll size, claims history, local medical costs, and safety record. Contact licensed agents for accurate quotes specific to your business.
Pay-as-you-go workers comp is a popular option in Missouri. It lets employers pay based on actual payroll rather than estimates, helping avoid large audit bills.
Missouri’s five-employee threshold is more lenient than neighboring states like Illinois, which require coverage for nearly all workers. However, for construction businesses, Missouri’s one-employee threshold is just as strict as Illinois’.
Claims Process: What Missouri Law Requires
When a workplace injury occurs, you must follow legal steps to avoid penalties.
- Employee Notice: The worker must report the injury to you as soon as possible—ideally within 30 days.
- Employer Reporting: Employers will report the injury to their workers’ compensation carrier or third party administrator within 5 days of the date of injury or injury notification.
- Insurer Reporting: The insurer must file the First Report of Injury (FROI) with the Missouri Division of Workers’ Compensation within 30 days of notification.
- Medical Evaluation: The injured worker is examined by your chosen physician.
- Benefit Payment: Disability status is determined by medical records and wage data.
- Dispute Resolution: The state provides mediation and hearings through the Division of Workers’ Compensation.
Claims must be filed within two years of the incident. All injury reports must be properly documented and filed within the required timeframes to ensure compliance. However if your employer fails to file the First Report of Injury on time with the Missouri Division of Workers’ Compensation, the filing deadline is extended to three years.
Stay Compliant—Protect Your Business
Missouri workers comp laws 2025 are clear: if you employ five or more workers—or even one in construction—you must carry coverage. Avoid penalties and lawsuits by acting today.
Here’s what to do now:
- Check employee count and industry-specific rules
- Ask your insurer about experience rating and discounts
- Use a pay-as-you-go model if cash flow is tight
- Add safety training and document it for lower premiums
Get your free premium estimate now using our instant calculator:
Call us at 855-718-7552 for expert guidance.
