If you run a business in Providence, Warwick, or Newport, Rhode Island workers’ comp insurance isn’t optional—it’s required by law. Whether you manage a construction crew or operate a small healthcare clinic, having coverage protects your business and your employees.
This 2025 guide explains who must carry insurance, what’s included, how claims work, average costs, and what happens if you don’t comply.
WHO NEEDS COVERAGE UNDER RI LAW
Under the RI workers’ comp requirements (R.I. Gen. Laws § 28-29), employers with one or more employees must carry workers’ compensation insurance. Coverage must be in place from the employee’s first day on the job.
Employers who must carry coverage:
- Retail shops with staff
- Construction firms with field workers
- Medical clinics with nurses or aides
- Warehouses with laborers
Exemptions include:
- Sole proprietors and partners with no employees
- Agricultural workers and domestic help
- Real estate agents classified as independent contractors
High-risk industries like construction and manufacturing face added scrutiny. OSHA compliance and valid coverage are mandatory for legal operation.
Noncompliance penalties:
- $1,000 fine per day without coverage
- Up to two years in prison and/or $10,000 fine (felony)
- Full liability for all medical and wage loss expenses
WHAT'S INCLUDED IN RHODE ISLAND WORKERS' COMP COVERAGE
The goal of workers’ compensation benefits Rhode Island is to give injured workers fast access to care—and shield employers from costly lawsuits.
Key benefits include:
- Medical Costs: Pays for doctor visits, surgeries, prescriptions, and rehab
- Total Disability Payments: 62% of the employee’s average weekly wage (for injuries on or after January 1, 2022) –
- Partial Disability Benefits: Covers wage gaps during part-time or light-duty return
- Vocational Rehab: Helps injured workers retrain and return to work safely
- Death Benefits: Death benefits include funeral costs up to a maximum of $20,000 and ongoing payments to dependents. The weekly benefit is equal to what the employee would have received for total incapacity (62% of the worker’s average weekly wage, up to the annual maximum), while children can receive $40 each week.
Death benefits cannot exceed the maximum weekly total disability benefit rate as established annually by the Rhode Island Department of Labor and Training
Want a simple breakdown of how workers’ comp works? Read our guide: Workers’ Comp Insurance Basics – What You Should Know.
COMMON INJURIES & STATE-SPECIFIC HAZARDS
The most frequent claims under the Rhode Island workers’ comp claim process come from daily job tasks—not major accidents. However, risks vary by industry and location.
Typical claims include:
- Slips and Falls: Icy sidewalks and wet loading areas lead to fractures and sprains
- Lifting & Strain Injuries: Found in warehouses, retail, and hospitals
- Caught-in Machinery: Occurs in factories using industrial tools
- Chemical Exposure: Risks include burns or breathing issues from cleaning products
Rhode Island-specific risks:
- Flooding & Storms: Affect marine workers and outdoor jobs during hurricane season
- Old Infrastructure: Increases fall risks in aging buildings
- Fishing Industry: High accident rates from deck slips or net entanglement near Bristol
Average claim cost by industry:
- Construction: $25,000–$75,000 per severe injury
- Healthcare: $10,000–$40,000 from lifting-related strains
- Retail: $3,000–$12,000 for minor slip-and-fall cases
WHAT DOES WORKERS' COMPENSATION INSURANCE COST RI EMPLOYERS?
Your workers’ compensation insurance cost RI depends on three major factors:
- Industry Risk Code
- Construction and logging: High-risk = higher base rates
- Retail and clerical: Lower risk = lower rates
- Payroll Size
- Premiums are based on payroll, billed per $100 in wages
- A $500,000/year payroll will cost more than $100,000/year—but may qualify for group savings
- Experience Modification Rate (EMR)
- Clean safety records = discounts
- Frequent claims = premium increases
Claim costs vary significantly by industry and injury severity, with construction and healthcare typically experiencing higher average costs due to injury complexity.
RHODE ISLAND WORKERS' COMP CLAIM PROCESS
When an injury happens, the Rhode Island workers’ comp claim process requires fast, clear action.
Steps for a valid claim:
- Employee reports injury to supervisor immediately, Rhode Island law gives the employee 30 days to notify their employer.
- Employer must file First Report of Injury within 10 days of the injury or knowledge of it in Rhode Island (48 hours if fatal)
- Employee has up to 2 years to file with the Workers’ Compensation Court
- Mediation or hearing is scheduled if disputes arise
Rhode Island Workers’ Compensation Court, part of the Rhode Island Unified Court System, handles claims through pretrial mediation and formal hearings.
2025 UPDATES RI EMPLOYERS SHOULD KNOW
- Rate Adjustments: NCCI continues to evaluate workers’ compensation rates annually based on loss experience and claims data
- Increased DLT Audits: Focus on small businesses using cash-only payrolls or failing to insure new hires
COMPLIANCE REQUIREMENTS
Rhode Island employers must maintain workers’ compensation coverage to meet state requirements under R.I. Gen. Laws § 28-29. Understanding coverage obligations, claim procedures, and penalty risks helps ensure legal compliance and employee protection.
For coverage guidance, contact licensed advisors at 855-718-7552 for Rhode Island workers’ compensation requirements.
