Business owners, corporate officers, partners, and LLC members sit in a special place in workers' compensation: depending on the state and the type of business, they may be required to carry it on themselves, allowed to choose, or not allowed to opt out at all. Choosing to be included or excluded is a real decision — it changes both your personal protection and your premium — and the rules are different in every state.
Why owners include or exclude themselves
Excluding an owner removes their payroll from the premium calculation, which can lower cost — but it also means no workers' compensation benefits if that owner is hurt on the job, and their own health plan may not pay for a work injury. Including an owner adds protection and may be required by a contract, a lender, or a general contractor you work under. The right answer depends on your health coverage, your risk, and who you contract with.
It depends on your entity type
A pattern holds in most states: sole proprietors, partners, and LLC members are usually excluded by default and must elect in, while corporate officers are usually included by default and must elect out. Many states add an ownership-percentage test, a cap on how many officers can be excluded, or special rules for construction. Your state page below has the specifics.
Three ways states handle the election
States record an owner's inclusion or exclusion in one of a few ways: some publish their own form; some use an online portal; and some have no form at all, so the election is recorded on the policy with the carrier — which is where our own CWCO general inclusion/exclusion form documents the decision. Four states — North Dakota, Ohio, Washington, and Wyoming — are monopolistic: coverage is written only through the state fund.
Included-owner payroll
When an owner stays covered, premium is figured on their payroll subject to a state-set minimum and maximum (set each year by NCCI or the state's own rating bureau). We confirm the current figure for your state and policy.
Choose your state
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakotastate fund
- Ohiostate fund
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washingtonstate fund
- West Virginia
- Wisconsin
- Wyomingstate fund
Not sure which rule applies to you? Request a quote or a policy review and we'll confirm it and handle the filing. See also our workers' compensation coverage page.
This page is general educational information from Cory Washington & Co. LLC about how workers' compensation owner inclusion and exclusion works in this state. It is not legal, tax, or insurance advice and is not a determination of your eligibility or obligation. Workers' compensation laws, forms, payroll limits, and residual-market programs change and depend on your entity type, ownership, and operations. Confirm the current rules and amounts with your licensed advisor at Cory Washington & Co. LLC and the state agency before making any election.