Can I exclude owners and officers from workers' comp coverage 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’ compensation insurance coverage even if you only have one employee.
Remember, workers’ compensation is an important part of your overall Pennsylvania business insurance portfolio. It pays out medical benefits and lost wages to injured employees suffering from a work-related injury or occupational disease. (Disability benefits, too, in worst-case scenarios.) Depending on the industry you’re in, an affordable workers’ comp policy can be the difference between a minor inconvenience and millions of dollars in legal fees and medical care if one of your employees files a workers’ compensation claim.
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 according to PA workers' comp law. However, if you would like to exclude yourself or other officers from workers’ compensation benefits, the process is pretty easy.
First, you have to fill out 2 workers’ compensation exemption forms:
- The Application for Executive Officer Exception from the Provisions of the Pennsylvania Workers’ Compensation Act, and
- Executive Officer’s Affidavit LIBC.
You’ll then send the application and the affidavit of exemption to your insurance carrier. 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 workers’ comp insurance policies. If you want to be included, you can indicate it on your sign-up form or submit a written request to your business insurer.
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, per Pennsylvania workers’ compensation law. (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 excluded unless they make a special request on the signup form or send in a written request to be added to an existing workers’ comp policy.
What if my business is an LLC?
Partners and owners in a Limited Liability Company aren’t automatically included in workers’ comp policies. If a partner wants workers’ comp coverage, they need to indicate this at signup time or send a written request to their insurance company.
If you’re ready for an instant estimate on workers’ comp, you can also use our workers' comp calculator and get a business insurance quote online in minutes. Everything is online. Everything is easy. No insurance agent required.