Five employees generally, one if you're in construction — and owners count in ways people don't expect.
Workers compensation · Updated September 2026
Missouri generally requires workers compensation coverage once an employer has five or more employees. Construction is treated differently: employers in the construction industry generally need coverage with one or more employees.
That second rule catches people. A two-person remodeling operation is below the general threshold and still required to carry coverage, because of the industry it works in.
Counting employees is less obvious than it sounds. Part-time and casual workers can count. Family members working in the business can count. And corporate officers and LLC members generally count toward the threshold even where they may be excluded from coverage themselves.
Ownership structure changes the answer, and it is worth getting right before you assume anyone is exempt.
Corporate officers and LLC members generally count toward Missouri's employee threshold, though inclusion and exclusion elections affect who is actually covered. Sole proprietors and partners are generally not covered themselves unless they elect coverage.
Two consequences follow. An owner who assumed they were not an employee may have pushed the business over the threshold without realizing it. And an owner who excluded themselves to save premium has no coverage if they are hurt on a job — which for a working owner in the trades is a real exposure, not a technicality.
Each state sets its own rules and they do not match Missouri's. Kansas ties the requirement to gross annual payroll rather than a headcount, with agricultural and certain other exemptions. Oklahoma requires coverage for most employers with employees, with its own set of exemptions.
If you have crews, job sites or employees in more than one of these states, the answer can differ state by state for the same business. Tell us where the work is actually performed and we will sort out which rules apply.
An employer below the threshold can still buy coverage voluntarily, and frequently should. Missouri warns that exempt employers who go without coverage remain exposed to civil lawsuits from employees injured at work — and that is the whole point of the system. Workers compensation exists as the exclusive remedy: the employee is compensated without litigation, and the employer is protected from being sued.
Drop out of that bargain and an injured employee's route to recovery is a lawsuit against the business, with no policy behind it and no limit on what a jury decides.
There is also a commercial reality. General contractors, property owners, municipalities and larger clients routinely require subcontractors to carry workers compensation regardless of what state law would require. Without it, you do not get the work.
Does the state require it? And does it make sense for this business? They are different questions, and the second one is the one that determines whether a sole proprietor with one helper should be carrying coverage.
Penalties for operating without required coverage are substantial, and an uninsured injury claim comes straight out of the business. Call us with your entity type, your employee count including owners, and the kind of work you do, and we will tell you plainly where you stand.
Generally five or more. Construction employers generally need coverage with one or more employees. Part-time, casual and family employees can count toward the threshold, and corporate officers and LLC members generally count as well.
Generally not required, and sole proprietors are not usually covered themselves unless they elect coverage. Many still buy it, because general contractors will not let an uninsured sub on the job and because an injury with no coverage is paid out of pocket.
In Missouri, corporate officers and LLC members generally do, even in cases where they can be excluded from coverage. That is a common way a business turns out to be over the threshold without realizing it.
Penalties for operating without required coverage are significant, and the business loses the liability protection the system provides — meaning an injured employee can sue directly. Uninsured claims are paid by the business.
Yes. Kansas ties the requirement to gross annual payroll rather than headcount; Oklahoma has its own rules and exemptions. If your crews cross state lines, the answer can differ for the same business depending on where work is performed.
Questions about your own situation? Call 417.623.8300 or send us your current policy. We are licensed in Missouri, Kansas and Oklahoma.
Send your current policy and we will check class codes, payroll, subcontractor exposure, your experience mod and claims history before we shop it.