In Alabama, whether a business owner or corporate officer is covered by workers' compensation — and whether they can change that — depends on the entity type and Alabama's own rules. Getting the election right affects both your protection and your premium. Here is how inclusion and exclusion work in Alabama, the form or filing to use, and what it means for your policy.
Who must carry workers' compensation in Alabama?
Required for employers who regularly employ 5 or more workers (full- or part-time, counting corporate officers); smaller employers are exempt but may elect coverage, and builders of new single-family homes are not relieved by the under-5 rule.
Can owners and officers be included or excluded in Alabama?
| Sole proprietor | Excluded by default; may elect in. |
|---|---|
| Partners | Excluded by default; may elect in. |
| LLC members | Included once the LLC is covered, but a member may elect to be exempt (Act 2017-390). |
| Corporate officers | Included by default (and counted toward the 5-employee threshold); may elect to be exempt. The exemption stays in effect until revoked in writing — it is not annual. |
How to make the election in Alabama
- Official source: Form WC-15 — Corporate Officer / LLC Member Exemption
Payroll counted for an included owner in Alabama
When an owner or officer is included, premium is figured on their payroll between a minimum and maximum (effective 3/1/2026), set by NCCI.
| Included owner/officer minimum | $1,150 per week |
|---|---|
| Included owner/officer maximum | $4,700 per week |
Included executive officer $1,150–$4,700/week; covered partners, sole proprietors, and LLC members at $61,000/year. NCCI-set, changes annually.
These amounts update periodically; we confirm the current figure for your policy.
Alabama's assigned-risk / residual market
An employer that can't secure workers' comp in the standard market can still get covered through Alabama Assigned Risk Pool (administered by NCCI). We market your risk to voluntary carriers first and turn to the residual market only as a last resort.
Related
Alabama business insurance · Workers' compensation coverage · Alabama Department of Labor, Workers' Compensation Division.
Frequently Asked Questions
Do business owners have to carry workers' comp on themselves in Alabama?
It depends on your entity and role. Excluded by default; may elect in. Included by default (and counted toward the 5-employee threshold); may elect to be exempt. The exemption stays in effect until revoked in writing — it is not annual. Employees are always covered.
How do I include or exclude an owner from workers' comp in Alabama?
The right form, portal, or endorsement depends on your entity type. Alabama records the election on the policy with the carrier; our general inclusion/exclusion form documents it.
What payroll is used for an included owner in Alabama?
Included executive officer $1,150–$4,700/week; covered partners, sole proprietors, and LLC members at $61,000/year. NCCI-set, changes annually. We confirm the current figure for your policy.
Can Cory Washington & Co. handle my Alabama workers' comp election?
Yes. We confirm which rule applies to your entity, prepare the correct form or election, coordinate it with your carrier, and keep your workers' comp aligned with the rest of your program. Request a quote or a policy review and we'll take it from there.
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.