Who needs coverage? This question comes up time and time again with policyholders. The full answer to the question "Who must have workers' compensation insurance?" is set forth in W. Va. Code §23-2-1.

The short answer is that with several exceptions, every employer that performs business in West Virginia must maintain workers' compensation insurance.

An employer is a company or person who employs at least one other person. It is generally accepted that an individual is considered to be employed if he or she receives wages, or some comparable compensation, in exchange for the performance of work.

In the absence of wages, workers are considered to be volunteers. The only volunteer organizations that are specifically required to have workers' compensation insurance are volunteer fire departments and emergency service organizations that fall under jurisdiction of the State Office of Emergency Services. Otherwise, volunteers cannot be covered under workers' compensation insurance unless they fit within exception No. 7 set forth below.

There are eight groups of employers that are considered to be exceptions to the rule. Employers who fit into one of these exceptions may elect to purchase workers' compensation insurance, but are not required to do so.

The eight exceptions are as follows:

1. Employers of persons in domestic services;
2. Employers of five or fewer employees in agricultural service;
3. Employers of employees who perform their work outside of West Virginia on more than a temporary basis;
4. Casual employers (i.e., employers of three or fewer employees whose work is temporary, intermittent and sporadic in nature and does not exceed 10 calendar days in any calendar quarter;
5. Churches;
6. Employers engaged in organized professional sports activities;
7. Volunteer rescue squads, volunteer police auxiliary units, other volunteer organizations sponsored by government entities, and area or regional emergency medical services, provided that any paid employees of these organizations must be covered by workers' compensation insurance; and
8. An employer of employees who work on or around boats or docks on navigable waterways and who are eligible for federal Longshore and Harbor Workers' Compensation. Rule 8 of the Insurance Commission's Workers' Compensation Rules provides more details on each of these exceptions.

There are always situations where the facts do not fit cleanly into one of the categories. If you have a question concerning coverage, please contact your local agent.