House Bill 440 allows insurers to provide Workers’ Compensation (WC) coverage to members of an LLC and partners of a partnership on a voluntary basis. It also formalizes the ability to do so for sole proprietors (while this was already done by the State Workers’ Insurance Fund, the bill codifies that the practice is permissible). It became effective August 29, 2011.
Coverage is provided on a voluntary basis. There is no mandate:
- For insurers to provide coverage or
- For sole proprietors, LLC members, or partners of a partnership to secure coverage for themselves.
Premium calculation: Sole proprietors, members, and partners are subject to the same minimum and maximum corporate officer payroll, as established by carrier underwriting rules filed with the Insurance Department.
Not all carriers will offer this coverage. If they offer the coverage, they will apply their underwriting requirements to each account on its own merits.
Please contact us to discuss this coverage.