The 4 Officers in a corporation can be covered or choose to exempt themselves from Workers' Compensation Insurance coverage.

Sole Proprietors and partners are exempt, and cannot buy Workers' Compensation Insurance for themselves, but they are required to cover all employees with Workers' Compensation. An employee has the right to waive Workers' Compensation Insurance.

The law requires employers who have one or more employees to carry Workers' Compensation Insurance. This includes employers who only have one part-time employee or those that hire workers for temporary periods of time.

(Make sure that employees hired through a temporary agency are covered under the temporary agency's Worker's Compensation insurance)

To Waive Workers' Compensation an employee must sign a waiver form on their first day of employment. If an employee is hurt on the job and had previously signed a waiver form, their health insurance will probably deny the claim and they have the right to sue you (the employer), for medical bills, lost wages and disability.

If an employee gets hurt on the job and you do not have Workers' Compensation Insurance, you are liable for all the benefits that the employee might have received under the Workers' Compensation system. If your company is a corporation, the officers of the corporation are all personally liable for the employee's injuries. Additionally, there are civil and criminal penalties for not having Workers' Compensation Insurance for your employees.

If you hire subcontractors, make sure they have Workers' Compensation Insurance. If a subcontractor or an employee gets hurt while working for you and they are not covered by insurance, you may be held liable.