Do Business Owners Need Workers’ Comp?
Employers usually need workers’ compensation for employees, but whether you must cover yourself as an owner depends on your state and entity.
States can treat sole proprietors, partners, LLC members, corporate officers, and employees differently, and some allow owners to opt in or out. New York, for example, lists certain sole proprietors without employees as not needing coverage and allows some owners to include themselves.
Ask the workers’ compensation agency in each state how it treats your business structure and owner roles. Confirm owner inclusion, payroll treatment, and any required election on the policy.
Coverage Guides Related to Workers’ Compensation Insurance
Sources for Workers’ Compensation Insurance Answers
- State Workers’ Compensation Officials. U.S. Department of Labor; State and territory workers’ compensation contacts. Accessed 2026-09-25.
- What business owners must know. New York State Workers’ Compensation Board; Who needs insurance, independent contractors, owners and exemptions. Accessed 2026-09-25.