If your Washington, D.C. corporation has any employees, yes, it must carry workers compensation insurance, and that usually includes the officers. D.C. treats a corporate officer who performs services for pay as an employee of the corporation, so a paid officer is covered by default. That is the opposite of how the District treats a sole proprietor or partner, and it means the question for an officer is whether to opt out, not whether to opt in.
Who this is for: Owners and officers of a D.C. corporation, whether a small S-corp with one owner-employee or a larger C-corp with a full payroll.
The short version
- A corporation with any employees must carry workers comp; the first employee makes it mandatory.
- A paid corporate officer is treated as an employee and is covered by default.
- To leave an officer off, the company opts them out through an endorsement the carrier adds.
- Opting an officer out lowers premium but leaves that person with no comp for a work injury.
- Non-owner employees must always be covered, and their pay drives most of the price.
Why officers are covered by default
The D.C. Act defines an employee as anyone in the service of another under a contract of hire. A corporation is its own legal person, so an officer who draws a wage is in the service of the corporation and fits the definition. That is why officers start out covered, which is the reverse of a sole proprietor or partner who starts out off the policy. If the company would rather not insure a particular officer, it can opt that officer out by an endorsement the carrier adds to the policy. D.C. has no government owner-election form, so the choice lives entirely with your insurer.
| Person | Default in D.C. | How to change it |
|---|---|---|
| Paid corporate officer | Covered as an employee | Company opts the officer out by carrier endorsement |
| Owner-officer of a small S-corp | Covered as an employee | Same; weigh the premium saving against losing your own coverage |
| Regular W-2 employee | Covered, no option to waive | Cannot be excluded; must be covered from day one |
| Unpaid board member | Generally not an employee | No wage, so usually outside coverage; confirm if they also work for pay |
Should an officer opt out?
Opting an officer out of the policy trims the premium, because that person's pay no longer counts in the pricing. The trade-off is real: an excluded officer who is hurt on the job has no comp benefits and falls back on personal health and disability coverage, which may not pay for a work injury or replace lost wages. Many small D.C. corporations keep the working owner-officer on the policy for exactly that protection, while a company with officers who never do hands-on work sometimes opts them out. Insurers price an included officer on a set pay figure rather than their full salary, so the premium effect is often smaller than owners expect.
How your price is set
Most of a corporation's premium comes from employee pay and the kind of work each person does. Every role is sorted into a pricing category based on its risk, sometimes called a class code, and an office role costs far less to insure than field or warehouse work. Putting people in the wrong category is a common and expensive mistake, so it pays to review the split before you buy. Your past claims also feed a score that nudges the price up or down over time.
A NoMa example
Illustrative, not a quote. A NoMa software company is set up as an S-corp with two owner-officers who both draw a salary and four W-2 employees. Because there are employees, D.C. requires a policy, and the four staff are covered from day one. The two officers are covered by default, and because they work at the business every day they stay on the policy rather than opting out, so a work injury to either owner is paid by comp. We make sure the mostly desk-based roles are priced in the right category so the company is not overcharged. See our workers comp for technology firms page.
Real questions District of Columbia owners ask
Does my D.C. corporation need workers comp?
Yes, once it has any employees, and paid officers usually count. D.C. requires coverage from the first employee, and a paid corporate officer is treated as an employee who is covered by default.
Are corporate officers covered by default in D.C.?
Yes. A D.C. officer who performs services for pay is an employee of the corporation and is covered by default. That is the opposite of a sole proprietor or partner, who starts off the policy.
How do I take an officer off the policy?
The company opts the officer out through an endorsement the insurance carrier adds. D.C. has no government owner-election form, so the choice is handled entirely through your insurer.
Should my owner-officer stay on the policy?
Often yes if they work in the business. Staying on means a work injury is paid by comp. Opting out saves some premium but leaves that officer relying on personal coverage that may not pay for a work injury.
Can I exclude a regular employee to save money?
No. Only owners and officers can be left off. A regular W-2 employee cannot be excluded and must be covered from day one, no matter how the company is set up.
What drives my corporation's workers comp price?
Mostly employee pay and the risk category each role falls into, sometimes called a class code. Office roles cost far less than field work, and your past claims feed a score that adjusts the price over time.
Is a board member who is not paid an employee?
Generally no. Without a wage, an unpaid board member is usually outside coverage. If that person also works for the corporation for pay, though, the paid role can make them a covered employee.
Why District of Columbia owners choose Morrow
- We shop the right market for you. In Washington, D.C. you buy workers' comp on the open, competitive private market from any insurer licensed in the District, because there is no government fund, and if no carrier will take you the NCCI-run assigned risk plan is the guaranteed backstop, so we can shop your rate freely and still have a fallback for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related District of Columbia guides
Every District of Columbia business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in District of Columbia (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Workers comp vs employers liability
- Glossary: workers comp class code
- DC tech company workers comp
This guide is general information, not legal advice. District of Columbia rules and penalty amounts can change, so verify current requirements with the D.C. Office of Workers' Compensation or a licensed advisor before you rely on them. Last updated: July 2026.