Can an executive officer be excluded from workers compensation insurance coverage?
The New York Workers’ Compensation Law (WCL) currently states that corporations with one or two executive officers, with no other employees requiring coverage, are not required to obtain coverage. If a corporation with one or two executive officers has employees requiring coverage under the WCL, either one or both of the officers may elect to be excluded from coverage providing the one or two officers own all of the issued and outstanding stock, with each owning at least one share, and hold all executive officer positions. If a corporation has three or more executive officers, including inactive executive officers, coverage under the WCL is mandatory.
A. According to M.G.L. c. 152, Section 1(4) as amended by Chapter 169 of the Acts of 2002, workers’ compensation coverage is elective for an officer or director of a corporation who owns at least 25% of the issued and outstanding stock of the corporation. For corporate officers to become exempt from coverage, a Form 153 must be filed with and approved by the Department of Industrial Accidents in accordance with Regulation 452 CMR 8.00. A copy of the filed and approved Form 153 must be mailed by the employer to their insurance carrier. Insurance carriers who receive an approved Form 153 should endorse the policy with NCCI endorsement WC000308 – Partners, Officers and Others Exclusion Endorsement. Refer to Circular Letter No. 1902.
