Exclude Owners From Coverage

Owners of building companies often exclude themselves from coverage under their own Workers’ Compensation policy, especially if they’re classified under a more expensive class code as is the case when they perform labor. Being excluded will reduce premiums as the owner’s payroll will not be included in the premium computation. However, it can be risky as important benefits that are provided under Workers’ Compensation will be lost. I would not recommend doing this unless the owner replaces the lost benefits with a combination of health insurance that covers on the job injuries, disability insurance, and life insurance. As a note of caution, you need to be careful if your health insurance is provided by your spouse’s group health plan because such plans will probably won’t cover your on the job injuries.