Usually, yes, but the rule depends on how your business is set up. Sole proprietors, partners, and LLC members are already out unless they choose to be covered. A corporate officer who owns at least 25 percent of the stock can opt out by filing a written waiver, state Form 153. Who this is for: Massachusetts business owners deciding whether to leave themselves off the workers comp policy to lower the premium.
The short version
- Sole proprietors, partners, and LLC members are not covered by default in Massachusetts. No form is needed to stay out.
- Corporate officers are covered by default. An officer who owns at least 25 percent of the stock can opt out with Form 153.
- Employees, including family members and part-timers, can never be excluded.
- Excluding yourself lowers the premium but leaves you with no coverage if you are hurt at work.
- Some general contractors reject certificates that show the owner excluded. Check your contracts first.
Which owners can be left off a Massachusetts workers comp policy?
The answer depends on how your business is set up. Massachusetts treats owners of different entity types differently.
| Business type | Covered by default? | How to change it | Payroll used for pricing if covered |
|---|---|---|---|
| Sole proprietor | No | Elect in by asking your insurer to add you. | $70,000 basis, effective October 1, 2025 |
| Partner | No | Elect in through the insurer. | $70,000 basis |
| LLC or LLP member | No | Elect in through the insurer. | $70,000 basis |
| Corporate officer or director owning at least 25 percent of the stock | Yes | Opt out by filing Form 153 with the Department of Industrial Accidents, the Affidavit of Exemption for Certain Corporate Officers or Directors. Give a copy to your insurer each year. | Officer payroll counted between $16,120 and $79,560 a year |
| Corporate officer owning less than 25 percent | Yes | Cannot opt out. | Same officer range |
| Any employee, including family | Yes | Cannot be excluded. | Actual payroll |
One Form 153 holds up to four officers. Each one named must own at least 25 percent of the issued stock. If your company has five equal owners, none of them qualifies. For the entity guides, see corporations, sole proprietors, and LLCs in Massachusetts.
How much does excluding myself save in Massachusetts?
Your saving is the payroll that comes off the policy, times the approved rate for your job class, times your claims multiplier. For a sole proprietor or LLC member, $70,000 of payroll comes off. For an officer, it is your reported pay within the officer range. Because Massachusetts base rates are approved and identical at every insurer, a broker can work out your exact figure from your own class before you decide.
| Owner and trade | Payroll removed | What decides the saving |
|---|---|---|
| LLC member, electrical | $70,000 | The approved rate for the electrical class |
| LLC member, carpentry | $70,000 | Carpentry is rated higher than electrical, so the saving is larger |
| Corporate officer at the $79,560 maximum, roofing | $79,560 | Roofing carries one of the highest rates, so this is the largest saving of the four |
| Corporate officer, office only, clerical class | $79,560 | The clerical rate is one of the lowest, so the saving is small |
Notice the last row. If you truly work only in a separated office, staying covered costs very little, because the clerical rate is low. Owners who swing a hammer save the most by opting out, and also give up the most.
What do I give up if I exclude myself?
Everything workers comp would have paid. Medical bills for a work injury, part of your lost wages while you heal, and permanent injury benefits. Health insurance plans often deny claims for injuries at work, expecting workers comp to pay. If you are the person on the ladder, think hard before you sign the waiver. A disability policy can fill some of the gap, but it does not pay medical bills. Excluding yourself does not create a legal risk. It just leaves you without a safety net.
Will a general contractor accept my certificate if I am excluded?
Not always. A certificate of insurance is a one page summary of your policies, limits, and dates. When the owner is excluded, the certificate says so. Many Massachusetts general contractors want every person on their site covered, because under Massachusetts law their insurer pays the injured workers of an uninsured subcontractor and then pursues the sub. That rule covers your employees, not you, so some general contractors simply require owners to be included. Read the subcontract before you decide. If you exclude yourself and then win a job that requires owner coverage, your insurer can usually add you mid-term.
What if I have no employees and my customer still wants a certificate?
That is what brokers call a ghost policy: a workers comp policy for a business with no employees and the owner excluded. It exists so a certificate can be issued. In Massachusetts a sole proprietor with no employees is not required to carry workers comp at all, so this only makes sense when a customer insists. A ghost policy covers nobody, and if you hire anyone, even part-time, Massachusetts requires real coverage from day one. If the goal is a lower bill rather than a certificate, see how to reduce workers comp costs in Massachusetts and the national guide on excluding yourself from workers comp.
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: A carpentry S corporation in Fall River has one owner who holds 100 percent of the stock and three employees. His own pay is about $78,000, all of it rated in the carpentry class.
What went wrong: He files Form 153 to opt out and saves about $5,900 a year (illustrative). Fourteen months later he falls from a staging plank on a job in Dartmouth and breaks his wrist. His health plan denies the claim as a work injury.
What it cost: Illustrative numbers: $31,000 in surgery and therapy bills and about nine weeks of no income, roughly $13,500 in lost pay. Two years of premium savings covered less than a third of it.
The fix: The exemption was legal and the saving was real. The lesson is to price the saving against what you do all day. An owner who works in the field should at least pair the exemption with health coverage that will pay for work injuries, or stay on the policy.
Frequently asked questions
Q: Can I exclude myself from workers comp in Massachusetts?
Usually. Sole proprietors, partners, and LLC members are not covered unless they elect in, so no form is needed. A corporate officer or director who owns at least 25 percent of the stock can opt out by filing Form 153. The exemption only works for officers who each own at least 25 percent, so a company with five equal owners has nobody who qualifies.
Q: What if my ownership share drops below 25 percent?
The exemption stops fitting. The waiver is only for officers who own at least 25 percent of the issued stock. Tell your insurer if your share falls, and expect to go back on the policy.
Q: Do I need workers comp in Massachusetts if I am a sole proprietor with no employees?
No. A sole proprietor is not their own employee, so no policy is required. The moment you hire anyone, even part-time or a family member, Massachusetts requires coverage from that first day.
Q: If I elect to cover myself as an LLC member, what payroll is used?
The state rating bureau prices sole proprietors, partners, and LLC members who elect in at a $70,000 payroll basis, effective October 1, 2025. Your premium is that amount times the rate for your job class.
Q: Will excluding myself cause problems with general contractors in Massachusetts?
It can. Some general contractors require every person on site to be covered and reject certificates that show the owner excluded. Read your subcontracts first. Your insurer can usually add you back mid-term if a job requires it.
Q: Does excluding myself save money if I only do office work?
Very little. Office-only payroll is rated in the clerical class, which is one of the lowest rates. For most owners who stay out of the field, the saving is a few hundred dollars a year and keeping coverage is the better deal.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Deciding whether a Massachusetts owner should stay on the workers comp policy is a conversation we have with contractors every week.
- 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.