Do Business Owners Need Workers’ Comp?

Workers’ compensation laws do not treat every owner the same. A state may distinguish sole proprietors, partners, LLC members, corporate officers, and employees, and may let some owners opt in or opt out. New York, for example, lists sole proprietors without employees among those who do not need coverage and says business owners can include themselves; that is a New York rule, not a nationwide one.

Ask the state agency how it treats your exact entity and ownership roles. On the quote, check whether each owner is included or excluded, how owner payroll is handled, and whether an endorsement or election is needed to add coverage. The agency’s answer should distinguish coverage required for employees from optional protection for the owner. Keep any signed owner election or exclusion with the policy records.