Can I exclude owners and officers from workers' comp coverage in Pennsylvania?
Okay, letâs look at whether you can exclude anyone from workersâ comp coverage in Pennsylvania.
First of all, your company must have workersâ compensation insurance coverage even if you only have one employee.
Remember, workersâ 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 youâre in, an affordable workersâ 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 workersâ compensation claim.
Still, you may be wondering if your owners or executive officers count as employeesâand whether you need to buy coverage for them.
We can answer that. Letâs examine the different kinds of business models and when you might be able to waive workersâ 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 workersâ comp coverage according to PA workers' comp law. However, if you would like to exclude yourself or other officers from workersâ compensation benefits, the process is pretty easy.
First, you have to fill out 2 workersâ compensation exemption forms:
- The Application for Executive Officer Exception from the Provisions of the Pennsylvania Workersâ Compensation Act, and
- Executive Officerâs Affidavit LIBC.
Youâll then send the application and the affidavit of exemption to your insurance carrier. Theyâll attach an Exclusion of Executive Officerâs Endorsement to your policy and exclude you from coverage.
If youâre a Huckleberry customer, youâll do this digitally. You can even complete the task on your phone and sign with your finger. Doesnât get much more convenientâand convenient is how we like it.
What if your business is a sole proprietorship?
Sole proprietors are not included in standard workersâ 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 workersâ comp policy, per Pennsylvania workersâ compensation law. (But if theyâre 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 workersâ comp policy.
What if my business is an LLC?
Partners and owners in a Limited Liability Company arenât automatically included in workersâ comp policies. If a partner wants workersâ comp coverage, they need to indicate this at signup time or send a written request to their insurance company.
If youâre ready for an instant estimate on workersâ 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.