If your Missouri corporation has employees, you likely need workers comp, and your officers are part of the picture in a way that surprises many owners. In Missouri, corporate officers are treated as employees, are covered by default, and count toward the five-employee threshold. So even a small corporation can reach the trigger through its own officers plus a few staff.
Who this is for: Missouri C-corp and S-corp owners working out whether their corporation needs a policy and whether the owner-officers are on it.
The short version
- Corporate officers are employees by law, are covered by default, and count toward the five.
- Your corporation needs coverage at five or more employees, or one or more in construction.
- A corporation with no more than two owners who are its only employees can withdraw the whole company from the system.
- An S-corp shareholder who owns at least 40 percent can individually reject coverage in writing.
- Regular employees must be covered and cannot waive out.
How Missouri treats corporate officers
The default here runs opposite to the sole proprietor rule. Officers start inside the system, not outside it.
| Person | Covered by default? | Counts toward the five? |
|---|---|---|
| Corporate officer | Yes | Yes |
| Regular employee | Yes, once at the threshold | Yes |
| Shareholder who does not work in the business | No, if not an officer or employee | No |
| A genuine independent contractor | No | No |
The two ways an owner-officer can opt out
Missouri gives closely held corporations two specific exits, and it is important not to confuse them. First, a corporation with no more than two owners who are also the corporation's only employees may withdraw the entire company from the Workers' Compensation Law by filing a notice of election with the Division, and that withdrawal takes effect from the date the notice is filed. If the owners later want the corporation back under the law, that reversal is what takes effect 30 days after they file it, or on a later date they name. Second, separate from that, a shareholder of an S corporation who owns at least a 40 percent interest may individually reject coverage by giving written notice to the corporation and its insurer. The first removes the whole company; the second removes only that one large shareholder.
The threshold still applies
Opting officers out does not erase the duty to cover your regular staff. For most corporations, coverage is required at five or more employees. In construction, it is required at one. So a manufacturer with a handful of line workers needs a policy for them even if the owner-officers have found a way to step off it. The exits above are about the owners, not about the crew.
A manufacturing example
Illustrative, not a quote. A small metal-fabrication S corporation outside St. Louis has one owner who holds all the stock and eight shop employees. The owner is an officer, so she is covered by default and counts toward the five, but the eight employees already put the company well over the threshold, so a policy is mandatory. Because she owns more than 40 percent, she could give written notice to reject coverage for herself to trim premium, while the eight workers stay fully covered. We review the shop's job classifications so the payroll is priced correctly. See our workers comp for manufacturers page.
Real questions Missouri owners ask
Does my Missouri corporation need workers comp?
If it has five or more employees, or even one in construction, yes. Officers count toward the five because they are covered by default, so a small corporation can reach the trigger through its officers and a couple of staff.
Are corporate officers covered by default in Missouri?
Yes. Missouri treats corporate officers as employees, so they are covered by default and count toward the threshold. This is the opposite of the sole proprietor and partner default.
How does a corporate officer opt out in Missouri?
Two paths. A corporation with no more than two owners who are its only employees can withdraw the whole company by filing a notice with the Division. Separately, an S-corp shareholder who owns at least 40 percent can reject coverage in writing.
Do officers count toward the five-employee threshold?
Yes. Because officers are covered by default, they count toward the five. A company with three officers and two staff can already be at the threshold even though it feels small.
Can a two-owner corporation get out of workers comp in Missouri?
Yes, if those two owners are the corporation's only employees. They file a notice of election with the Division, and that withdrawal takes effect from the date it is filed. If they later choose to rejoin, that reversal takes effect 30 days after filing or on a later date they name.
Does my S corporation still need to cover its workers?
Yes. A shareholder rejecting coverage only removes that person. Your regular employees must be covered once you reach five, or from the first employee in construction, regardless of any owner election.
What is the penalty if my corporation goes uninsured?
Knowingly failing to insure is a class A misdemeanor plus a civil penalty of up to three times the premium owed or 50,000 dollars, whichever is greater, and a repeat offense is a felony. An injured worker can also sue the company.
Why Missouri owners choose Morrow
- We shop the right market for you. In Missouri you buy workers' comp on the open, competitive market from any private insurer licensed in the state, because Missouri has no state fund after Missouri Employers Mutual became a fully private company in 2025, and if no private carrier will take you, the insurer-of-last-resort pool run by NCCI and serviced by Travelers 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 Missouri guides
Every Missouri 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 Missouri (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)
- What is an experience mod, and how do I lower it?
- Workers comp vs employers liability
- Missouri manufacturer workers comp
This guide is general information, not legal advice. Missouri rules and penalty amounts can change, so verify current requirements with the Missouri Division of Workers' Compensation or a licensed advisor before you rely on them. Last updated: July 2026.