If you skip required workers compensation in Connecticut, the state can hit you with civil penalties, order your work stopped, charge a knowing failure as a felony, and leave you open to a lawsuit from an injured worker. Connecticut treats going without coverage as a serious violation, not a paperwork slip, and the costs stack up fast. For any employer with even one employee, the price of skipping coverage dwarfs the premium.
Who this is for: Connecticut owners weighing the risk of going without coverage, or worried about a lapse, especially in higher-risk trades like roofing and construction.
The short version
- Connecticut can order a civil penalty of at least 500 dollars per employee or 5,000 dollars, whichever is smaller, up to 50,000 dollars.
- On top of that, 100 dollars a day can be added for every day you stay uninsured after a ruling, up to another 50,000 dollars.
- A knowing failure to insure, or calling employees contractors to cut premium, is a class D felony.
- The state Labor Commissioner can issue an order that stops your work until you insure.
- An injured worker at an uninsured business can sue you directly, and unpaid claims get paid by a state fund that then comes after you.
What Connecticut can do to you
Connecticut's penalties for going without required coverage come from several parts of the Workers' Compensation Act and related labor law. They range from a modest fine for a willful violation to felony charges and a shutdown of your business.
| Violation | What Connecticut can do |
|---|---|
| Willful failure to follow the Act | A fine of up to 250 dollars |
| Failing to carry required coverage | A civil penalty of at least 500 dollars per employee or 5,000 dollars, whichever is smaller, up to 50,000 dollars |
| Staying uninsured after a ruling | An added 100 dollars a day, up to another 50,000 dollars |
| Knowing failure to insure, or misclassifying employees to cut premium | A class D felony, with up to 5 years in prison and a fine up to 5,000 dollars |
| Operating in violation | A stop-work order from the state Labor Commissioner until you comply |
| An injury while uninsured | A direct lawsuit by the worker, plus repayment to the state fund that covered the claim |
The stop-work order and the felony
Two of these deserve a closer look because they can end a business. The state Labor Commissioner can issue a stop-work order against an employer that fails to insure or that misrepresents employees as contractors, and the order shuts the operation down until you show you have complied. Separately, a knowing failure to secure coverage is a class D felony, and that exposure reaches the owner, partner, or officer responsible, not just the company. These are not abstract risks; construction and roofing are heavily watched, and a job site without proof of coverage is a common trigger.
The lawsuit you no longer can stop
The quiet penalty is the loss of your legal shield. When you carry comp, an injured employee's claim is generally handled through the comp system instead of a lawsuit. Fail to carry required coverage and you lose that protection, so the worker can sue the business directly for damages. If the uninsured employer cannot pay an awarded claim, Connecticut's Second Injury Fund steps in to pay the worker and then sues the employer to get its money back, and can add double damages plus legal costs if you do not repay within 90 days.
A Connecticut roofing example
Illustrative, not a quote. A Connecticut roofing contractor with four crew members skips coverage for a season to save money. A town inspector notices no proof of coverage on a permitted job and reports it, and a crew member falls and is seriously hurt the same month. The contractor faces civil penalties, a possible stop-work order, and a direct lawsuit from the injured worker, and the Second Injury Fund pays the claim and then pursues him for repayment. A season of premium would have cost a small fraction of that. See our workers comp for roofers page.
Real questions Connecticut owners ask
What is the penalty for not having workers comp in Connecticut?
Connecticut can order a civil penalty of at least 500 dollars per employee or 5,000 dollars, whichever is smaller, up to 50,000 dollars, plus 100 dollars a day while you stay uninsured, up to another 50,000 dollars.
Can I go to jail for not carrying workers comp in Connecticut?
You can face felony charges. A knowing failure to secure coverage, or misclassifying employees to cut premium, is a class D felony that carries up to 5 years in prison and a fine up to 5,000 dollars.
Can Connecticut shut my business down over this?
Yes. The state Labor Commissioner can issue a stop-work order against an employer that fails to insure or misrepresents employees as contractors, and the order keeps your work stopped until you comply.
Who has to pay the penalties, the company or me?
Both can be exposed. Civil penalties fall on the business, but the felony exposure for a knowing failure reaches the owner, partner, or officer responsible, so it is not only the company that is at risk.
Can an injured worker sue me if I have no coverage?
Yes. Carrying comp normally keeps injuries in the comp system instead of court. Without required coverage you lose that shield, so an injured worker can sue the business directly for damages.
What is the Second Injury Fund and how does it affect me?
It is the state fund that pays an injured worker when an uninsured employer cannot. After it pays, it comes after you for repayment and can add double damages and legal costs if you do not repay within 90 days.
Where do the fines go?
The civil penalties for failing to insure are paid to Connecticut's Second Injury Fund, the same fund that pays injured workers of uninsured employers, so your penalty helps cover the very gap you created.
Why Connecticut owners choose Morrow
- We shop the right market for you. In Connecticut you buy workers' comp on the open, competitive market from any private insurer licensed in the state, because there is no state fund, and if no carrier will take you the NCCI-run assigned risk plan is the guaranteed backstop, so we can shop your rate freely and still have a fallback for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Connecticut guides
Every Connecticut business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Connecticut (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- What workers comp does not cover
- Workers comp vs employers liability
- Connecticut roofing workers comp
This guide is general information, not legal advice. Connecticut rules and penalty amounts can change, so verify current requirements with the Connecticut Workers' Compensation Commission or a licensed advisor before you rely on them. Last updated: July 2026.