If your Louisiana partnership has employees, yes, it must carry workers compensation, because Louisiana requires coverage from the first employee. For the partners themselves, Louisiana treats a working partner as a covered employee by default. A partner can leave themselves off the policy by signing an election with the insurer, and unlike a corporate officer or an LLC member, a partner has no ten percent ownership gate on that choice.
Who this is for: Partners in a Louisiana general or limited partnership, from a two-person professional firm to a partnership that runs a payroll of employees.
The short version
- A partnership with any employee must carry workers comp from day one.
- Partners are covered by default as working owners, so they start on the policy.
- Any partner can elect out by signing with the carrier, with no ownership floor.
- A partnership with no employees and only working partners can fall outside the mandate.
- Employees who are not partners must always be covered, whatever the partners choose.
How Louisiana treats partners
Louisiana law lets a partner in a partnership elect not to be covered. Because a working partner is otherwise treated as an employee, the default is that partners are on the policy, and a partner comes off only by signing an ownership exclusion with the carrier. What makes partners simpler than officers or LLC members is that there is no percentage gate: a partner with any ownership share can elect out. The election binds the electing partner and their surviving spouse, heirs, and dependents.
| Your partnership setup | Is comp required? | What partners and staff should know |
|---|---|---|
| Two partners, no employees | Not mandatory on the partners | Partners are covered by default; any partner may elect out with no ownership floor |
| Partners plus any employee | Yes | Employees are covered from day one; partners decide individually to stay on or elect out |
| Partnership bidding work for a general contractor | Maybe, by contract | Many contractors require a policy and proof of coverage before you start |
Electing out, or staying on
Since partners begin on the policy, each partner decides whether to elect out. A partner who stays on has their own on-the-job injuries covered, and their pay is counted in the premium at a set amount the rating bureau publishes each year rather than their actual draw. A partner who signs out keeps their pay out of the premium and relies on their own health and disability coverage. Partners can choose differently from one another, so a firm might keep the partners who do field or hands-on work on the policy while the desk-bound partners elect out.
Why partnerships still buy it
Even a two-partner firm with no employees often buys a policy. Clients, landlords, and general contractors regularly require proof of coverage before they will sign, and a policy covering the working partners is usually the cheapest way to satisfy that. It also protects against a work injury that a partner's personal health plan could deny.
A Lake Charles example
Illustrative, not a quote. A Lake Charles accounting partnership has two partners and hires one part-time bookkeeper during tax season. Because the firm now has an employee, Louisiana requires a policy and the bookkeeper is covered from the first day. Both partners are covered by default and each can sign an election to leave themselves off with no ownership floor. They elect out to keep their draws out of the premium, but keep the bookkeeper fully covered. We make sure the clerical work is rated correctly so the price reflects a low-hazard office. See our workers comp for accounting firms page.
Real questions Louisiana owners ask
Does our Louisiana partnership need workers comp?
If it has any employees, yes. Louisiana requires coverage from the first employee. A partnership with no employees and only working partners can fall outside the mandate, though contracts often require a policy anyway.
Are partners covered by default in Louisiana?
Yes. Louisiana treats a working partner as a covered employee, so partners start on the policy. A partner comes off only by signing an ownership exclusion election with the carrier.
Can any partner elect out?
Yes. Unlike a corporate officer or an LLC member, a partner has no ten percent ownership floor. Any partner can elect out by signing an exclusion with the insurer, and each partner decides individually.
Do we still need to cover our employees if the partners elect out?
Yes, always. Electing partners off the policy never removes the duty to cover staff. Any employee who is not a partner must be covered from their first day of work.
Can two partners choose differently about coverage?
Yes. Each partner makes their own election, so a firm can keep the hands-on partner covered while the office-based partner elects out, based on how much on-the-job injury risk each one carries.
How is a partner's pay counted if they stay on the policy?
At a set amount, not their actual draw. When an owner stays covered, Louisiana counts their pay in the premium at a figure the rating bureau publishes each year, which keeps the pricing predictable.
Should a small partnership buy a policy even without employees?
Often yes. Clients, landlords, and general contractors frequently require proof of coverage before they will sign, and a policy on the working partners is usually the cheapest way to meet that requirement.
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?
- I own a corporation (C-corp or S-corp): do I need it?
- 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)
- Do sole proprietors need workers comp?
- Hiring your first employee: what changes
- Louisiana accounting firm 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.