Workers’ Compensation
Is my Company required to have Workers’ Compensation Insurance?
Workers’ Compensation Coverage
Workers’ Compensation requirements vary by state, but most businesses with employees are required to carry coverage.
This may include:
- Sole proprietors with employees
- LLCs with employees
- Corporations, with or without employees
Workers’ Compensation helps protect employees financially if they are injured or become ill due to their job.
Corporations: State Law determines if owners can opt out of coverage. Must provide coverage for employees.
PA: Corporate officers can choose to exclude themselves from coverage. Important: An Application For Exemption Form must be filed if an officer would like to opt out of coverage (or opt out for the company if they are the only employee)
NJ: Corporate officers cannot opt out of coverage and must be included.
NY: Corporate officers with a significant ownership stake (typically more than 1%) may choose to exclude themselves from coverage.
DE: Corporate officers are covered, unless they choose to be excluded from coverage.
MD: Corporate officers can elect to exclude themselves from coverage if they own at least 20% of the corporation’s stock.
DC: Corporate officers can choose to be included or excluded from coverage.
VA: Required to have Workers’ Compensation if the corporation has three or more employees, including corporate officers. Corporate officers may elect to exclude themselves from coverage.
All businesses must ensure compliance to avoid legal and financial penalties.
