If your Pennsylvania corporation has employees, yes, it needs workers compensation, and unlike owners of other business types, corporate officers are covered by default rather than left out. An officer can remove themselves only if they meet a specific ownership test and file the state's executive officer exception forms; everyone else on the payroll must be covered.
Who this is for: owners and officers of a Pennsylvania corporation, whether it is taxed as a C corporation or an S corporation. A corporate officer is someone like a president, treasurer, or secretary who helps run the company, and Pennsylvania handles officers very differently from sole proprietors, partners, or LLC members.
The short version
- Officers are in by default: Pennsylvania covers corporate officers automatically, the opposite of how it treats sole proprietors and partners.
- Employees are always covered: any non-owner worker must be covered from the first hire.
- Opting out is limited: only officers who meet an ownership test can remove themselves.
- It takes paperwork: qualifying officers file an executive officer exception and a declaration to opt out.
- Where you file depends on your staff: file with your insurer if you have other employees, or with the state if the officer is the only worker.
Who qualifies to opt out
Not every officer can drop coverage. Pennsylvania lets an officer elect out only if they fit one of these categories:
| Officer type | Covered by default? | Can opt out? |
|---|---|---|
| Officer who owns stock in an S corporation | Yes | Yes, by filing the exception forms |
| Officer who owns at least 5 percent of a C corporation | Yes | Yes, by filing the exception forms |
| Officer who serves without pay for a nonprofit corporation | Yes | Yes, by filing the exception forms |
| Officer with no qualifying ownership | Yes | No, must stay covered |
| Any non-owner employee | Yes | No, must stay covered |
The forms and where they go
A qualifying officer who wants out files two documents: the Application for Executive Officer Exception (Form LIBC-509) together with the matching Executive Officer's Declaration (Form LIBC-513). Where you send them depends on your staff. If the corporation has other employees and a policy that covers them, you file the exception with your insurance carrier. If the officer is the only worker and there is no other coverage, you file with the Bureau of Workers' Compensation compliance section. Opting an officer out lowers the premium, but it also means that officer has no workers comp benefits if they are hurt on the job, so many owners keep themselves covered on purpose.
A quick Pennsylvania example
Illustrative, not a quote. Priya and a partner run a small machine shop near Reading as an S corporation, with three shop employees plus themselves as officer-owners. The three employees must be covered no matter what. Priya and her partner each own stock, so they qualify to opt out and could file the exception forms to trim the premium. They decide to stay covered instead, and months later Priya cuts her hand on a press and needs surgery. Because they kept themselves on the policy, it pays her treatment and part of her lost income. Had they opted out to save money, that injury would have been entirely on them.
Real questions Pennsylvania owners ask
I'm the only officer of my Pennsylvania corporation. Am I covered automatically?
Yes. Pennsylvania covers corporate officers by default, so you are included unless you take steps to opt out. That is the opposite of how the state treats sole proprietors, partners, and LLC members.
Can I take myself off the policy as an officer?
Only if you qualify. You must own stock in an S corporation, own at least 5 percent of a C corporation, or serve without pay for a nonprofit corporation, and then file the state's exception forms.
What forms do I file to opt out?
You file the Application for Executive Officer Exception, Form LIBC-509, along with the Executive Officer's Declaration, Form LIBC-513. Both are needed to remove a qualifying officer from coverage.
Where do I send the exception paperwork?
If your corporation has other employees and a policy covering them, you file with your insurance carrier. If the officer is the only worker, you file with the Bureau of Workers' Compensation compliance section.
Do my regular employees still need coverage if I opt out?
Yes. Opting out only affects the qualifying officer. Every non-owner employee must be covered from their first day, regardless of what the officers choose.
Should I opt out to save money?
It lowers your premium, but it also strips your own workers comp benefits if you are hurt on the job. Many owners keep themselves covered because their health plan may deny a work-related injury.
Does it matter whether we are a C-corp or an S-corp?
It affects the opt-out test. An S corporation officer needs an ownership interest to opt out, while a C corporation officer needs at least a 5 percent stake. Either way, employees must be covered.
Why Pennsylvania owners choose Morrow
- We shop the right market for you. Pennsylvania is an open, competitive market: you can buy coverage from any private insurer licensed in the state or from the state-run State Workers' Insurance Fund (SWIF), and Morrow shops multiple carriers to find the best fit instead of leaving you with a single option.
- 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 Pennsylvania guides
Every Pennsylvania 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 Pennsylvania (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
- What is an experience mod, and how do I lower it?
- Manufacturer workers comp in Pennsylvania
This guide is general information, not legal advice. Pennsylvania rules and penalty amounts can change, so verify current requirements with Pennsylvania Department of Labor and Industry, Bureau of Workers' Compensation or a licensed advisor before you rely on them. Last updated: July 2026.