A Nebraska corporation, whether a C-corp or an S-corp, needs workers compensation once it employs anyone, and in a corporation that usually includes the owners. Here is the twist that surprises people: a corporate officer who owns less than a quarter of the stock is treated as an employee and is covered automatically, while an officer who owns a quarter or more is left off by default and can choose to opt in. That is the opposite of how sole proprietors and LLC members are treated, so the way you are set up really matters.
Who this is for: Owners and officers of Nebraska corporations, including closely held S-corps where the owners also draw a paycheck.
The short version
- The corporation needs coverage as soon as it has one employee, with no headcount grace.
- An officer who owns less than 25 percent of the stock is counted and covered automatically.
- An officer who owns 25 percent or more is left off by default and can opt in.
- A 25-percent-or-more officer opts in with a written election filed with the corporate secretary and the insurer.
- Regular employees are always covered, no matter how the officers are treated.
How Nebraska treats corporate officers
Officers are the one place the answer flips based on ownership. The rule keys off how much of the company each officer owns, not their job title.
| Person | Covered by default? | What to do |
|---|---|---|
| Officer owning under 25 percent of stock | Yes | Treated as an employee automatically; on the policy |
| Officer owning 25 percent or more of stock | No | Left off unless they file a written election to opt in |
| Non-owner employee | Yes | Always covered; triggers the requirement |
| Part-time or seasonal worker | Yes | No hours floor |
How a big owner-officer opts in
If you are an officer who owns a quarter or more of the company, you are outside the system until you opt in. Nebraska has a specific two-step for this: you file a written election with the corporation's secretary and with your workers comp insurer. There is a related protection worth knowing about. If you own a quarter or more, have not elected comp coverage, and a health or accident policy tries to exclude you on the theory that you could have had workers comp, that exclusion does not apply to you. Still, most owner-officers who do any hands-on work choose to opt in so a job injury is clearly covered.
Why the difference matters
Two corporations with the same headcount can end up paying for different people. A startup where each of four founders owns 25 percent can leave all four off the policy and cover only the rank-and-file staff, while a company with one 90-percent owner and a 5-percent officer must keep that minority officer on the policy. Getting this wrong cuts both ways: leave a small-stake officer off and you may have an uninsured injury, or pay for a major owner who did not need to be on. Because officers carry both payroll and liability exposure, it also helps to understand how comp pairs with the employer liability piece, which we cover in our national guide on workers comp versus employers liability.
A Kearney example
Illustrative, not a quote. A Kearney machine shop is an S-corp with two owner-officers, one holding 60 percent and one holding 40 percent, plus six shop employees. The six employees must be covered, which triggers the policy. Because each officer owns a quarter or more, both are off by default, but they both work on the floor, so they each file a written election with the corporate secretary and the insurer to add themselves. When a machinist catches a hand in a press, comp handles the medical bills and lost wages, and the owners are covered too because they elected in. We make sure the shop payroll is rated on the right kind of work. See our workers comp for manufacturers page.
Real questions Nebraska owners ask
Does my Nebraska corporation need workers comp?
Yes, once it employs anyone. Nebraska requires coverage from the first employee, and in most corporations the owners who draw a paycheck are part of that picture depending on how much stock they own.
Are corporate officers covered in Nebraska?
It depends on ownership. An officer who owns less than a quarter of the stock is treated as an employee and covered automatically. An officer who owns a quarter or more is left off unless they opt in.
How does a major owner-officer opt into coverage?
An officer who owns 25 percent or more files a written election with the corporation's secretary and with the workers comp insurer. Until then, that officer is outside the system.
Why is a minority officer covered but a majority owner is not?
Nebraska keys the rule to ownership, not title. The state assumes a small-stake officer functions like an employee, while a major owner is treated more like a proprietor who chooses whether to opt in.
Do my regular employees get covered no matter what?
Yes. Non-owner employees are always covered once the corporation has coverage, regardless of how the officers are treated. Their coverage does not depend on the officer elections.
Can leaving an officer off save money?
Sometimes, but it is risky. Leave a small-stake officer off when the law counts them and you may have an uninsured injury. It is worth checking the ownership math before you decide who is on the policy.
What if we go without required coverage?
Willfully going uninsured is a crime in Nebraska, can bring a fine of up to 1,000 dollars per day, and can get the business shut down by court order. Officers with authority to buy coverage can be held personally liable.
Why Nebraska owners choose Morrow
- We shop the right market for you. In Nebraska you buy workers' comp on the open, competitive market from any private insurer licensed in the state, because Nebraska has no state fund, and if no carrier will take you the Travelers-run Nebraska Workers' Compensation Insurance 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 Nebraska guides
Every Nebraska 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 Nebraska (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 workers comp does not cover
- Workers comp vs employers liability
- Nebraska manufacturer workers comp
This guide is general information, not legal advice. Nebraska rules and penalty amounts can change, so verify current requirements with the Nebraska Workers' Compensation Court or a licensed advisor before you rely on them. Last updated: July 2026.