Does a limited liability company need workmans comp for one officer?

Answer 1

Your state may not require you to do so, but there are many benefits to carrying Comp, such as lifetime medical for a work-related injury, lost wages, retraining in a new job if you can't continue your old one, etc. If you're asking if you can be exempt from carrying the coverage, check with your state - and note that NO state releases you from liability, just from having to have insurance. Would the business survive if the limited liability company had to pay possible claims itself, while one worker couldn't work? Would the relationship survive?

Answer 2

Your state may provide an exemption; however, Comp is still very valuable. Consider the benefits of lifetime medical for a work-related injury and retraining if a member can't perform the same job following a work-related injury. Alternatively, ask your agent about Occupational Accident coverage - especially if members are highly paid, the customizable limits of Occupational Accident (Occ Acc) can be a better choice. Plus, it's important to note that whether you have insurance or not, you remain liable to all workers within your company. If you lack coverage, you lose the sole remedy and your workers can sue you.

Answer 3

I personally think everyone should be covered by Comp or an alternative, such as Occupational Accident or a self-insured plan. Even if you have health insurance, if you're injured on the job - even if it's in an auto accident on your way to the bank, if you're seriously injured and can't work for years, who will pay those health insurance premiums and lost wages? Comp has lifetime medical for work-related injuries. Occupational Accident is available in most states, and you can customize it for yourself and for any executives, partners or others that may be eligible to be excluded - or for any employee who opts out (rare.) It can work alone or in conjunction with Comp. Depending on the state, the company's sole employee may be required to be covered unless he/she opts out. If you exercise an exemption or are an employee who opts out, do so legally. The entity form (LLC vs. INC, etc.) has no bearing on the question.