Are Owners Covered Under A Workers’ Compensation Policy In California?

The reason business owners should have workers’ compensation insurance is to protect themselves from financial disaster. The medical costs of treating an injured worker, lost wages and other associated costs could be extremely burdensome for any business small or large and could put their assets at risk.

They are covered only if they want to be. In other words, homeowners have the option to opt in or opt out of coverage. This would mean that if they are covered, they are also entitled to benefits should they be injured. You can go to and avail workers compensation coverage in California.

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If you choose to be included, your payroll will also be included in the calculation of your workers’ compensation premium. You can also choose to be excluded from coverage; in this case you would not be charged the premium from your payroll.


Who can be excluded is determined based on the legal form of ownership of your business. The three most common legal ownership entities used by businesses are as follows:

1. Sole proprietorship or sole proprietorship: In this case, the individual, their spouse and their resident relatives may be excluded from coverage.
2. Partnership: all partners can be excluded, spouses and family members cannot be excluded
3. Corporation: All shareholders who are also officers can be excluded only if the officers own 100% of the shares of a corporation. Officers who do not have shares or shareholders who are not officers may not be excluded. Spouses and relatives cannot be excluded.