Is workers comp required in Pennsylvania?
Pennsylvania generally requires employers with one or more employees to carry workers compensation. Owners, partners and corporate officers are treated under their own rules, and some workers such as certain agricultural or domestic employees may be handled differently.
Buying coverage in Pennsylvania
Coverage in Pennsylvania is sold by private insurers. Every state also has a market of last resort, so even higher-risk or brand-new businesses can generally find a policy. Pennsylvania also has a competitive state-chartered carrier, State Workers' Insurance Fund (SWIF), that sells coverage alongside private insurers.
Who sets the rules
The Pennsylvania Bureau of Workers' Compensation oversees workers comp in Pennsylvania. Classifications and loss costs in Pennsylvania come from the Pennsylvania Compensation Rating Bureau (PCRB), an independent rating organization, so codes and rules can differ from NCCI states.
What Pennsylvania employers should know
- Pennsylvania uses its own rating bureau and class codes, and offers premium credits for employers with certified workplace safety committees.
- A state-run fund in Pennsylvania serves as a market for businesses that private carriers decline.
Pennsylvania facts employers ask about
Pennsylvania requires virtually every employer with one or more employees, full- or part-time, to carry workers compensation. The Bureau of Workers' Compensation in the Department of Labor & Industry oversees the system, and failing to insure can lead to criminal prosecution as well as personal liability for injured workers' claims.
The Pennsylvania Compensation Rating Bureau (PCRB) maintains the state's own classification codes and loss costs, separate from NCCI. Employers can buy from private carriers or from the State Workers' Insurance Fund (SWIF), a state-run carrier that also serves as the insurer of last resort.
Two Pennsylvania-specific items affect many small businesses. Employers with a workplace safety committee certified by the Bureau can receive a 5 percent premium discount, renewed annually. And the Construction Workplace Misclassification Act sets specific tests for when a construction worker can be treated as an independent contractor, so general contractors should document those relationships carefully.
Employers that private carriers will not write can still obtain a policy through the residual market administered with the PCRB.
Sources: Pennsylvania Bureau of Workers' Compensation; Pennsylvania Compensation Rating Bureau. Rules change; confirm current requirements with the agency before you rely on them.
How premiums are calculated
Your Pennsylvania premium starts with payroll in each job classification. Experience mods, schedule credits and minimum premiums then adjust it, and the year-end audit settles the difference between estimated and actual payroll. Learn more about how workers comp rates work and preparing for an audit.
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Pennsylvania workers comp FAQ
Is workers comp required in Pennsylvania?
Pennsylvania generally requires employers with one or more employees to carry workers compensation. Rules and exceptions change, so confirm your situation with the state agency or an agent.
Who oversees workers comp in Pennsylvania?
The Pennsylvania Bureau of Workers' Compensation administers the workers compensation system in Pennsylvania.
Can I buy Pennsylvania workers comp from a private insurer?
Yes. Private insurers write workers comp in Pennsylvania, and a market of last resort is available for businesses that are hard to place.
How is workers comp priced in Pennsylvania?
Classifications and loss costs in Pennsylvania come from the Pennsylvania Compensation Rating Bureau (PCRB), an independent rating organization, so codes and rules can differ from NCCI states. Your Pennsylvania premium starts with payroll in each job classification. Experience mods, schedule credits and minimum premiums then adjust it, and the year-end audit settles the difference between estimated and actual payroll.