If you run a business in Georgia, workers' compensation insurance probably isn't the most exciting part of your day. But here's the thing: it's one of those non-negotiables that protects both you and your employees when accidents happen. And in a state known for its thriving small business community, understanding Georgia's workers' comp requirements isn't just about staying compliant—it's about building a safety net for your team.
Whether you're opening your first restaurant in Atlanta, running a construction crew in Savannah, or managing a growing tech startup, this guide breaks down everything you need to know about Georgia workers' comp—from who needs coverage to how much it costs and what to do if an employee gets hurt.
Who Needs Workers' Comp in Georgia?
Georgia's threshold is pretty straightforward: if you regularly employ three or more people—even part-time or seasonal workers—you need workers' compensation insurance. Notice the word "regularly." This means if you have two full-time employees and one part-timer who shows up every week, you've hit the threshold. All three count toward that magic number.
The good news for solo entrepreneurs and tiny operations? If you maintain two employees or fewer, you're not required to carry coverage. That said, accidents don't check your headcount before they happen, so many small business owners choose to get coverage anyway for peace of mind.
Exemptions: Who Can Opt Out?
Georgia law automatically exempts certain categories of workers from workers' comp requirements. Sole proprietors and business partners are automatically excluded—they don't need to cover themselves under the state's workers' compensation system. Independent contractors are also exempt since they work independently rather than as employees.
Domestic workers—like nannies, housekeepers, and in-home caregivers working in private residences—are typically exempt from Georgia's workers' comp requirements as well.
Here's where it gets interesting: if you're a corporate officer or LLC member, you're automatically included in your company's workers' comp policy. But you can elect to opt out. Up to five corporate officers can choose to file for a workers' comp exemption, and LLC members can reject coverage by completing Form WC-10 and submitting it to your insurance carrier or the State Board of Workers' Compensation.
One important caveat: regular employees cannot opt out of coverage. If you're on the payroll and not an owner or officer, you're covered—period. This protection is non-negotiable under Georgia law.
How Much Does Workers' Comp Cost in Georgia?
Let's talk money. The good news is that Georgia's workers' comp rates are about 10% below the national median. Over the past couple of years, Georgia has improved its ranking from 15th to 31st among states for median workers' comp costs—meaning it's become more affordable relative to other states.
Your actual premium depends on your industry classification code, which reflects the level of risk associated with your type of work. Rates are set by the National Council on Compensation Insurance (NCCI) and are typically expressed as a cost per $100 of payroll. For example, in 2025, clerical staff might cost around $0.81 per $100 of payroll, while restaurant staff runs about $1.19 per $100 of payroll. Higher-risk industries like construction or roofing will pay significantly more.
Your claims history matters too. If you've had frequent or expensive claims, your experience modification factor (also called an "ex-mod") will drive your rates up. On the flip side, a clean safety record can earn you discounts. The 2013 workers' compensation reform in Georgia has helped drive down average claim costs, which has had a positive ripple effect on premiums statewide.
Filing a Workers' Comp Claim: The Step-by-Step Process
Accidents happen, even in the safest workplaces. When an employee gets hurt on the job, knowing the claims process can make a stressful situation a lot smoother. Here's what needs to happen:
First, the injured worker must report the injury to you (the employer) within 30 days of the incident. Encourage employees to do this immediately and in writing—it creates a paper trail and protects everyone involved. Even if the injury seems minor at first, document it.
Next, the employee needs to get medical treatment from an authorized physician. This is crucial—if they see a doctor who isn't on the approved list, their medical bills and prescriptions might not be covered. You should provide your employee with a list of approved physicians, or they can search the State Board of Workers' Compensation physician database online.
As the employer, you're required to complete Form WC-1 and submit it to your workers' comp insurance company. Your insurer then has 21 days to investigate the injury and file a report with the State Board of Workers' Compensation (SBWC). If for some reason your employer doesn't file the claim, the injured worker can file a WC-14 form directly with SBWC. They have up to one year from the date of the reported injury to do this.
In 2024, Georgia workers' comp pays up to two-thirds of an employee's pre-injury wages, with a weekly maximum of $800 and a minimum of $50. If a claim is denied or the injured worker disagrees with the approved benefits, they have the right to request a hearing from SBWC to resolve the dispute.
Getting Started: What You Need to Do Next
If you're starting a business in Georgia or you've recently crossed that three-employee threshold, your first step is to shop for a workers' comp policy. Contact a licensed insurance agent who specializes in commercial insurance—they can help you find the right coverage at a competitive rate.
Make sure you understand your industry classification code and keep accurate payroll records, since your premium is calculated based on these factors. If you want to opt out as an owner or officer, download Form WC-10 from the State Board of Workers' Compensation website and submit it to your insurer.
Finally, don't wait until an accident happens to familiarize yourself with the claims process. Create a simple protocol for reporting injuries, keep a list of authorized physicians handy, and make sure your employees know what to do if they get hurt. A little preparation now can save a lot of headaches later.
Workers' compensation insurance might not be glamorous, but it's an essential part of running a responsible business in Georgia. It protects your employees when they need it most, and it protects you from devastating financial liability. Whether you're just starting out or you're a seasoned business owner, staying informed about Georgia's workers' comp requirements helps you build a safer, more secure workplace for everyone.
