Puerto Rico Workers? Comp Compliance

As in the 50 states that we have looked at, Puerto Rico has a mandatory system of workers’ comp for all of its employers. That means that all employers on the U.S. territory must follow along and provide workers’ comp insurance to all of its workers in case one of them gets hurt on the job.

Unlike some of the other 50 states though, in Puerto Rico the workers’ comp insurance is not provided by independent insurance agencies and companies. Instead, there is a government sponsored workers’ compensation state fund that all employers must buy in to, unless of course they are self-insured in the territory.

We remember what that means right? Self-insurance basically means what it sounds like—the employer has decided to insure themselves for workers’ comp, meaning that they set aside their own money to pay for any workers’ comp injury and disability claims that may come down the pike. This is different than traditional insurance, where you pay an insurance company a set premium for their insurance product, no matter if there is an actual claim or not. Then the insurance company can invest that premium how they choose and make money off it. In self-insurance, you don’t pay a premium. You don’t actually pay anything until one of your workers actually gets hurt.

In Puerto Rico, there are some notable exceptions to the blanket workers’ comp rule, whether or not you are self-insured or if you buy coverage through the state fund. For one, farm workers and sharecroppers in the territory are covered by the workers’ comp, as are domestic workers.

But no matter what the employee does, it is the workers’ comp agency that decides what doctors they go to when they are hurt. All workers, though, when hurt get full medical coverage for their injuries and for any emergencies that might occur right after the accident.