Expert answers to all your business insurance questions.
Can I exclude owners and officers from workers' comp in Pennsylvania?
Okay, let’s look at whether you can exclude anyone from workers’ comp coverage in Pennsylvania.
First of all, your company must have workers’ comp even if you only have one employee (there are some nuances, which you can learn about here). Still, you may be wondering if your owners or executive officers count as employees—and whether you need to buy coverage for them.
We can answer that. Let’s examine the different kinds of business models and when you might be able to waive workers’ comp for some of the people involved with your business.
Is your Pennsylvania business a corporation?
Executive officers function the same as employees in for-profit and nonprofit corporations, and are automatically included in workers’ comp coverage. However, if you would like to exclude yourself or other officers, the process is pretty easy.
First, you have to fill out two forms: 1) the Application for Executive Officer Exception from the Provisions of the Pennsylvania Workers’ Compensation Act, and 2) Executive Officer’s Affidavit LIBC. You’ll then send these along to your insurance provider. They’ll attach an Exclusion of Executive Officer’s Endorsement to your policy and exclude you from coverage. (If you’re a Huckleberry customer, you’ll do this digitally. You can even complete the task on your phone and sign with your finger. Doesn’t get much more convenient—and convenient is how we like it.)
What if your business is a sole proprietorship?
Sole proprietors are not included in standard worker’s comp insurance policies. If you would like to be included, you can indicate it on your sign-up form, or by submitting a written request to your insurance provider.
What if my family members work for me?If your family member is a regular employee, they cannot be excluded from your workers’ comp policy. (But if they’re an executive officer or partner, the standard exclusion rules would apply.)
Can business partners be excluded?
Yes. In fact, business partners are automatically excluded unless they make a special request on the signup form, or send in a written request to be added to their already existing workers’ comp policy.
What if my business is an LLC?
Partners and owners in an LLC aren’t automatically included in workers’ comp policies. If a partner would like workers’ comp, they need to indicate this at signup time or send a written request to their insurance company.
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