In most states, yes, but the rule depends on how your business is set up. If you run a corporation, you are usually covered already and file a state form to opt out. If you are a sole proprietor or a partner, you are usually not covered and can choose to opt in. If you run a limited liability company (LLC), the rule changes by state. Who this is for: owners who want to know what leaving themselves off the policy saves, and what it costs if they get hurt.
The short version
- Corporate officers are usually covered unless they file a state form to opt out. Many states require a minimum ownership share.
- Sole proprietors and partners are usually not covered unless they opt in.
- Members of a limited liability company (LLC) are treated differently from state to state.
- An excluded owner gets no workers comp benefits, and some health plans do not pay for a work injury.
- Some general contractors will not accept a certificate with the owner excluded. Check your contracts first.
Who is covered by default, and who can opt in or out?
Workers comp treats owners by the legal form of the business. Here is the pattern in most states. Your state may differ, so confirm it with your broker.
| How your business is set up | Covered by default in most states? | How you change it | Watch out for |
|---|---|---|---|
| Sole proprietor | No | Choose to opt in, usually by a form | Payroll counted at a flat amount the state sets |
| Partner in a partnership | No | Choose to opt in | Same flat payroll amount |
| Officer of a corporation | Yes | File the state exclusion form | Many states require a minimum ownership share, and some cap how many officers opt out |
| Member of an LLC | Varies | Some states treat you like a partner, some like an officer | Ask which rule your state uses |
Two exceptions. In North Dakota, Ohio, Washington, and Wyoming you buy workers comp from the state fund, so the election goes to the state agency and its own rules decide who may opt out. In Texas most private employers can choose not to carry workers comp at all, so check what your contracts require first.
State guides: corporations in New York, LLCs in California, and sole proprietors in Florida.
How much does excluding myself save?
Your own payroll is usually not charged the way an employee's is. An officer of a corporation is rated on actual pay, but only between a minimum and a maximum the state sets each year. A sole proprietor or partner who opts in is charged on one flat payroll amount instead. Your premium is then the rate for your job category times that amount. Insurers call that rate your class code rate.
| Owner's job category | Illustrative rate per $100 of payroll | Owner payroll used in this example | Yearly cost to include the owner |
|---|---|---|---|
| Roofing | $18.00 | $62,000 | $11,160 |
| Carpentry | $8.00 | $62,000 | $4,960 |
| Electrical | $4.50 | $62,000 | $2,790 |
| Office only, in a separate office | $0.30 | $62,000 | $186 |
The figures are illustrative and depend on trade, state, and claims history. This example uses $62,000. Your state's flat amount, or your own pay between the state minimum and maximum, may differ. Notice the last row: if you truly work only in the office, being rated in the office category can cost under $200 a year and keeps your benefits. Excluding yourself saves real money only when you work in the field.
What do I give up if I exclude myself?
- Medical bills and lost wages. If you fall off a ladder, workers comp pays nothing. Some health plans exclude injuries that happen at work, and others pay only after they check whether workers comp applies, so read your plan wording. No health plan replaces your income.
- Protection from your own lawsuit. The part of workers comp that pays if an employee sues you, called employers liability, does not apply to an owner who is not covered.
- Some contracts. Many general contractors require every person on site to be covered. Others accept a copy of your exclusion form with the certificate. Ask before you file.
- No surprise bill at year end. If you exclude yourself and then work in the field, some states let the insurer charge for you anyway when it checks your real payroll at the end of the year.
How do I file the exclusion or the election to be covered?
- Confirm your business type and ownership share. The form asks for both, and the share decides whether you qualify in many states.
- Get the right form. Every state uses its own. Your broker has it, or the state agency posts it.
- File it before the policy starts. In many states the exclusion takes effect on the date it is filed or accepted, not before. A form filed in month six saves nothing for the first five months.
- Keep a copy with your certificates. Auditors ask for it.
- Refile when things change. A new insurer often means a new form.
For the cost side of the decision, see can excluding myself as the owner make workers comp cheaper.
What this looks like in real life
Illustrative example. It is typical of what we see and is not a promise of how any specific situation would be handled.
The setup: Two brothers own a roofing corporation in Florida, half each. With an illustrative roofing rate of $18 per $100 and owner pay counted at $62,000 each, covering both costs about $22,300 a year. They file the state exclusion form for both.
What went wrong: Fourteen months later one brother falls from a second story eave. Medical bills reach $48,000. His health plan denies the claim as a work injury. He is off the roof for ten weeks with no income.
What it cost: The bills came out of the business, plus roughly $13,000 in lost draw. The two year saving was about $44,600, so one injury wiped out most of it.
The fix: Excluding a working owner is a bet that you will never get hurt. Consider excluding only an owner who stays in the office, or keep both covered and shop the rate instead.
Frequently asked questions
Q: Can I exclude myself from workers comp?
In most states, yes. Corporate officers file a state form to opt out, often only if they own a minimum share. Sole proprietors and partners are usually not covered unless they opt in. LLC members follow one of those two rules depending on the state.
Q: How much does excluding myself from workers comp save?
The rate for your job category times the owner payroll your state uses. For a roofer that can be more than $10,000 a year, and for an office only owner it can be under $200.
Q: If I exclude myself and get hurt on the job, who pays?
You do, unless another policy steps in. Workers comp pays nothing for an excluded owner. Some health plans exclude work injuries and others pay only after checking whether workers comp applies, so read your plan.
Q: Will a general contractor accept my certificate if I am excluded?
Some will and some will not. Many contracts require every person on site to be covered. Others accept a copy of your state exclusion form with the certificate.
Q: Can I exclude myself and still cover my employees?
Yes. The exclusion removes only you. Your employees stay covered, and in most states you are still required to carry the policy for them.
Q: Can I change my mind in the middle of the policy year?
Usually, but not backward. In many states a new form takes effect on the date it is filed or accepted, so file the change before you go back to the field.
Rules and prices differ by state. There is a local version of this guide for Arizona, California, Florida, Georgia, Massachusetts, New Jersey, New York, and Texas.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Working out whether an owner should be excluded, and checking that answer against the contracts you are bidding, is part of how we place and service a contractor's workers comp.
- Free contract review. Send us the contract or bid documents and we mark up the insurance section in plain English, whether or not you buy anything from us.
- Free, instant certificates. Clients issue their own certificates of insurance online in about a minute, any hour, any day, at no charge.
- Markets you cannot reach online. One application, shopped across many insurance companies for general liability, workers comp, auto, umbrella, and pollution coverage.
One more thing. This article is general information and is not legal advice or a statement of coverage. Your contract and your policy wording control in every case. Requirements vary by customer, by state, and by insurance company, so have a licensed advisor review your own contract and your own policy before relying on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated September 2026.