If your Louisiana corporation has employees, yes, it must carry workers compensation, because the state requires coverage from the first employee and corporate employees are covered like any staff. For the owners, Louisiana treats a corporate officer who performs services as a covered employee by default. An officer can leave themselves off the policy only by signing an election, and only if they hold at least ten percent of the corporation's stock. An officer below that ten percent line stays covered.
Who this is for: Owners and officers of a Louisiana C-corp or S-corp, from a two-person family corporation to a corporation with a full W-2 payroll.
The short version
- A corporation with any employee must carry workers comp from day one.
- Officers are covered by default as working employees, not left off the policy.
- An officer can elect out only if they own at least ten percent of the stock.
- An officer below ten percent cannot elect out and must stay covered.
- A tiny corporation whose only workers are its owners can sometimes fall outside the mandate.
How Louisiana treats corporate officers
Louisiana law lets a bona fide president, vice president, secretary, or treasurer elect not to be covered, but only if that officer owns at least ten percent of the stock. The election is made by signing an ownership exclusion with the carrier, not by filing a state exemption, and it binds the officer and their surviving spouse, heirs, and dependents. The ten percent floor matters: an officer who owns less than ten percent, or a working shareholder who is not one of those named officers, is a covered employee and cannot sign out.
| Person in the corporation | Covered by default? | Can they elect out? |
|---|---|---|
| Officer owning ten percent or more of stock | Yes | Yes, by signing an exclusion with the carrier |
| Officer owning less than ten percent | Yes | No, they must stay covered |
| Working shareholder who is not an officer | Yes | No, treated as an employee |
| Regular W-2 employee | Yes | No, always covered |
The very small corporation
Louisiana guidance recognizes that a one or two person corporation can fall outside the mandate when the owners hold all of the stock and all of the offices and there are no other workers. In that narrow case there is no non-owner employee to trigger coverage. Add a single employee who is not an owner, though, and the requirement switches on for that worker, while the officers still decide their own inclusion under the ten percent election rule.
Why officers often stay on
Even when an officer clears the ten percent line and could elect out, many stay on the policy. Comp pays medical bills and lost wages for an on-the-job injury without a liability fight, and a personal health plan can deny a claim that happened at work. Staying on also keeps a clean answer for clients and lenders who ask whether everyone working in the business is covered. Officers who do elect out should confirm their own health and disability coverage would respond to a serious work injury.
A Shreveport example
Illustrative, not a quote. A Shreveport metal fabrication S-corp has two officer-owners, each holding half the stock, plus four shop employees. Because the corporation has employees, Louisiana requires a policy and all four workers are covered from day one. Both officers own well over ten percent, so each could sign an exclusion to leave themselves off. They keep one officer on for the on-the-job coverage and exclude the other, who has strong personal coverage. We check that the shop work is rated correctly so the fabrication payroll is priced fairly. See our workers comp for manufacturers page.
Real questions Louisiana owners ask
Does my Louisiana corporation need workers comp?
If it has any employees, yes. Louisiana requires coverage from the first employee, and corporate employees are covered like any staff. A tiny corporation whose only workers are its owners can sometimes fall outside the mandate.
Are corporate officers covered by default in Louisiana?
Yes. Louisiana treats a working officer as a covered employee, so officers start on the policy. That is the opposite of an opt-in state, and an officer only comes off by signing an election with the carrier.
Can an officer elect out of coverage?
Only a qualifying one. A bona fide president, vice president, secretary, or treasurer can elect out, but only if they own at least ten percent of the corporation's stock. An officer below that line must stay covered.
What about a shareholder who is not an officer?
They cannot elect out. Louisiana's election is limited to named officers who meet the ten percent stock test. A working shareholder who is not one of those officers is treated as a covered employee.
Do our regular employees have to be covered if the officers elect out?
Yes, always. Electing officers off the policy never removes the duty to cover your staff. Any employee who is not a qualifying owner must be covered from their first day of work.
Should an officer stay on the policy even if they can elect out?
Often it is worth it. Comp pays medical bills and lost wages for a work injury without a liability fight, and a personal health plan can deny an on-the-job claim, so many officers keep themselves covered.
How is an officer's pay counted if they stay covered?
At a set amount, not their real salary. When an owner stays on the policy, Louisiana counts their pay in the premium at a figure the rating bureau publishes each year, which keeps pricing predictable.
Why Louisiana owners choose Morrow
- We shop the right market for you. In Louisiana you buy workers comp on the open, competitive market from any private insurer licensed in the state or from the state-created mutual fund, the Louisiana Workers' Compensation Corporation, which also serves as the guaranteed market that cannot turn you down, 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 Louisiana guides
Every Louisiana 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 Louisiana (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
- Hiring your first employee: what changes
- Louisiana manufacturer workers comp
This guide is general information, not legal advice. Louisiana rules and penalty amounts can change, so verify current requirements with the Louisiana Workforce Commission's Office of Workers' Compensation Administration or a licensed advisor before you rely on them. Last updated: July 2026.