Larue Insurance Agency, Inc

Archive for the ‘Workers Compensation Insurance’ Category

Indiana has recently made a change in the rules governing workers compensation for those corporations where there is one and only corporate officer. For several years Sole Proprietors, Partners, and Members of a Limited Liability Company were automatically excluded from workers compensation in Indiana unless they took steps to opt into coverage. Corporate Officers were at a disadvantage as all corporate officers had to be covered by workers compensation. Indiana has changed this Workers Comp Law.

Recently Indiana changed the rules for corporations but on a very limited basis.  If a corporation has one corporate officer, and only one, that corporate officer may now opt out of workers compensation for himself.  In order to do this, the corporation must type a letter on its corporate letterhead and file it with an Indiana prescribed form with the Indiana Workers Compensation Board and the insurance company. We can supply the required text of the letter.

This option is NOT available if there are ANY other corporate officers such as a spouse or other family member.  This provision has NO effect on the corporation’s responsibility to carry workers compensation on regular employees and uninsured sub-contractors. It only affects the one SOLE corporate  officer.

This is new and not very well known, even to the insurance industry and many agents.