Does Workers’ Comp Cover Owners?

A workers’ compensation policy principally responds to covered employees under the applicable state law. Owners can have a different status from employees, and some states let an owner elect coverage while others exclude certain owners by default. New York says owners may include themselves, but its rules also identify some owner categories that need no coverage when they have no employees.

Do not infer owner protection from the business name appearing on the declarations. Check the owner’s legal role, state-specific election or exclusion forms, payroll basis, and the policy’s information page. If several owners work in the business, confirm each person’s status separately with the broker and state agency. If the owner has opted out, ask whether that affects only the owner or also the company’s protection for its employees. Keep the signed exclusion or election attached to the issued policy.