Is my Company required to have
Workers Compensation Insurance?
Workers’ compensation laws vary across states. Yet, a fundamental principle remains consistent: businesses with employees, whether they be sole proprietors or limited liability companies (LLCs), are generally obliged to provide workers’ compensation coverage. In addition, corporations with or without employees must have workers compensation.
This requirement ensures financial protection for employees in case of work-related injuries or illnesses,
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