Is workers compensation insurance required for the officers (like president, secretary, treasurer or vice president) and the directors of the corporation?
A. No, so long as they are also the sole shareholders. All officers, and members of boards of directors, of private corporations, while rendering actual service for the corporations for pay, must be covered. However, there is a major exception. Where the officers and directors of the private corporation are the sole shareholders thereof, the corporation and the officers and directors shall come under the worker’s compensation provisions only “by election.” In other words, insurance is not required unless such officers or directors want (elect) to be covered. Source: Section 3351(c) of the California Labor Code.
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