How to Obtain Workers' Compensation Insurance in Oregon: A Step‑by‑Step Guide

Why Oregon Requires Workers' Compensation Coverage

In Oregon, all employers with one or more employees must carry workers' compensation insurance. It provides medical care and wage replacement for job‑related injuries or illnesses and shields employers from costly lawsuits.

Step 1: Confirm Your Coverage Requirement

Who Needs Insurance?

Any business with one or more employees—full‑time, part‑time, or seasonal—must be insured. Even a sole proprietor with a single employee is subject to the mandate.

Exemptions to Know

Limited‑risk workers, independent contractors, and certain government employees are exempt, but the definition of "employee" can vary. Verify your status with the Oregon Workers' Compensation Division.

Step 2: Gather Business Information

Before you apply, collect:

• Employer Identification Number (EIN)
• Business address and contact details
• Number of employees and their job classifications
• Estimated payroll and annual revenue
• Past claims history (if any)

Step 3: Choose a Licensed Insurance Carrier

Oregon offers both private insurers and the State Compensation Fund (SCF). Compare rates, claim handling, and coverage options.

Private Insurers

These companies offer tailored plans but may charge higher premiums for high‑risk industries.

State Compensation Fund

SCF is a no‑fault carrier that often provides more affordable rates for small businesses with low claim history.

Step 4: Request Quotes and Compare Coverage

Request at least three quotes to evaluate:

• Premium cost
• Coverage limits (medical, wage replacement, disability)
• Deductibles
• Optional add‑ons (e.g., accident benefits, payroll protection)

Step 5: Submit Your Application

Complete the carrier's application form, provide required documentation, and pay the initial premium. Oregon's Workers' Compensation Division will issue an insurance certificate upon approval.

Step 6: Maintain Compliance

Keep your policy active and update the insurer if:

• You hire or lay off employees
• Payroll changes significantly
• You switch to a different insurer

File quarterly reports with the Oregon Department of Labor and Industries (DOLI) and pay any additional premiums as required.

Common Pitfalls and How to Avoid Them

1. Under‑insurance: Ensure limits match your industry's risk profile.

2. Late renewal: Set calendar reminders for policy renewal dates.

3. Incorrect employee classification: Misclassifying independent contractors can lead to penalties.

Quick Reference Table: Coverage Options vs. Costs