I Own a Utah Corporation: Need Comp?

A Utah corporation is the employer, and its officers and directors are covered by default. A corporate officer or director is treated as a covered employee unless the corporation excludes them, and Utah lets you exclude up to five of them by filing a written notice. Because unexcluded officers already count as covered employees, a corporation whose only workers are its owner-officers is not automatically exempt for lacking non-owner staff: it must either carry a policy or file the state's officer exclusion form to be relieved of the duty. Add any non-owner employee and a policy is required no matter what.

Who this is for: Owners of a Utah C-corp or S-corp, whether it is a small closely held company with only officers or a corporation with a full payroll.

The short version

Any employee means a policy is required (Utah Code 34A-2-201), from your first worker.
Officers and directors are covered by default. Utah includes them as employees automatically (34A-2-104(4)).
You can exclude up to five. The corporation excludes up to five directors or officers by filing a written notice. With a policy in place the notice goes to the insurer; a corporation that wants to carry no policy files the state's officer exclusion form with the Labor Commission's Industrial Accidents Division.
Excluding an officer does not drop your staff. An exclusion only removes that officer; the corporation must still cover every other employee.
Non-owner employees are always covered from their first day once the corporation has any worker.

How officers are treated

Because the corporation is a separate legal person, it is the employer and its officers and directors are its employees for comp. Utah covers those officers by default, so an officer who does nothing stays protected. Since unexcluded officers are covered employees, a corporation whose only workers are its owner-officers already has covered employees and must either carry a policy or file to exclude those officers. To leave an officer off, the corporation excludes them in writing, and Utah caps that at five directors or officers. With a policy in place the notice goes to the insurer, or to the commission if the corporation is approved to self-insure; a corporation that wants to carry no policy files the state's Corporation Directors and Officers exclusion form with the Labor Commission's Industrial Accidents Division. One trade-specific limit: a director or officer of a motor carrier who personally operates a vehicle cannot be excluded. A minority officer who is not among the excluded five stays covered like any other employee.

What applies to your corporation

Your corporation	Is comp required?	Officer and employee notes
Solo owner-officer, no other staff	Policy or exclusion filing	The officer is a covered employee by default; carry a policy, or file the state exclusion form with the Industrial Accidents Division to owe no policy
Several owner-officers, no other staff	Policy or exclusion filing	Officers are covered by default; carry a policy, or file to exclude up to five of them with the Industrial Accidents Division to owe no policy
Officers plus any non-owner employees	Yes	Employees covered from day one; officers covered by default, up to five may be excluded
A motor-carrier officer who drives	Covered, cannot be excluded	An officer of a motor carrier who personally operates a vehicle stays covered

Deciding whether officers go on the policy

For an owner-officer, staying on the policy means your own work injuries are paid by comp; being excluded keeps you off the premium but leaves you to rely on your own health and disability coverage for a work injury. Because coverage is the default, an exclusion is a deliberate choice, and it only makes sense for owners who are comfortable carrying that risk themselves. Many small corporations keep hands-on owners covered, cover all rank-and-file employees, and only exclude an officer who works entirely off the shop floor. An owner who works on a shop floor or a job site is exactly the kind of person who benefits from staying on the policy.

A Sandy example

Illustrative, not a quote. A Sandy manufacturer is an S-corp with a president and a vice-president, plus four production employees. With employees on the payroll, the corporation needs a policy, and all four workers are covered from day one. Both officers are covered by default; the corporation files a written notice excluding the president, who only handles sales from an office, while the vice-president who runs the floor stays covered. Because the cap is five, the company could exclude more officers later if it wanted. See our workers comp for manufacturers page.

Real questions Utah owners ask

Does my Utah corporation need workers comp?

Any non-owner employee makes a policy mandatory from your first worker. And because officers and directors are covered by default, even a corporation staffed only by owner-officers must either carry a policy or file the state officer exclusion form; non-owner employees must always be covered regardless of what the officers choose.

Are corporate officers covered by default in Utah?

Yes. A corporate officer or director is a covered employee automatically. To leave them off, the corporation elects to exclude them in writing, and Utah caps the exclusion at five directors or officers.

How many officers can a Utah corporation exclude?

Up to five directors or officers. With a policy in place the corporation files the exclusion with its insurer, or with the commission if it self-insures; a corporation carrying no policy files the state's officer exclusion form with the Industrial Accidents Division. Officers beyond that cap stay covered.

Can a motor-carrier officer be excluded in Utah?

No, not if that director or officer personally operates a vehicle for the motor carrier. Utah keeps that person covered even when other officers are excluded.

We are owner-officers with no other staff. Do we need a policy?

Not automatically off the hook. Your officers are covered employees by default, so the corporation must either carry a policy or file the state's officer exclusion form with the Labor Commission's Industrial Accidents Division. You can exclude up to five directors or officers; once they are excluded and you have no other staff, no policy is required.

Do I still have to cover employees if the owner-officers are excluded?

Yes. An exclusion only removes that officer. Every non-owner employee must be covered from their first day once the corporation has a worker, no matter what the officers decide.

Should a working owner-officer stay on the policy?

Usually yes if they do hands-on work, since comp then pays their work injuries. An owner who only manages from a desk more often gets excluded and relies on their own coverage.

Why Utah owners choose Morrow

We shop the right market for you. In Utah you buy workers comp on the open market, where many private insurers compete alongside the policyholder-owned state fund, WCF Insurance, which also acts as the insurer of last resort, so we can shop your rate across carriers and still have WCF as a guaranteed backstop 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 Utah guides

Every Utah 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.

This guide is general information, not legal advice. Utah rules and penalty amounts can change, so verify current requirements with the Utah Labor Commission, Division of Industrial Accidents or a licensed advisor before you rely on them. Last updated: July 2026.