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Glossary of WCB Terms

Corporate Officer Coverage Requirements


For-profit Corporate Officers with Employees: Coverage Requirements for Penalty Purposes

Any executive officer of a corporation who owns all the shares of stock and holds all the offices of the corporation and has employees is automatically included in the corporation's workers' compensation insurance policy (Employees). This officer may choose to exclude him/herself by filing an exclusion form with his/her insurance carrier at the time the policy is written or renewed. This document, Form C-105.51 adobe pdf, is available on the Board's website.

Any two executive officers of a corporation who each own at least one share of stock and between them own all the shares of stock and hold all the offices of the corporation and have employees are automatically included in the corporation's workers' compensation insurance policy (Employees). One or both of the officers may choose to exclude themselves by filing an exclusion form with their insurance carrier at the time the policy is written or renewed. This document, Form C-105.51 adobe pdf, is available on the Board's website.

Please note that no corporate officers may be excluded if the corporation has more than two corporate officers or more than two shareholders, or where the two corporate officers do not own all the shares of stock (each owning at least one share.)

For-profit Corporate Officers with No Employees – Coverage Requirements for Penalty Purposes

Any executive officer of a corporation who owns all the shares of stock and holds all the offices of the corporation and has no other persons in his/her employ is automatically excluded from the WCL (Employees). This officer may choose to include him/herself by obtaining a workers' compensation insurance policy.

Any two executive officers of a corporation who each own at least one share of stock and between them own all the shares of stock and hold all the offices of the corporation and have no other persons in their employ are automatically excluded from the WCL (Employees). One or both of the officers may choose to be included by obtaining a workers' compensation insurance policy.

Please note that no corporate officers may be excluded if the corporation has more than two corporate officers or more than two shareholders, or where the one or two corporate officers do not own all the shares of stock (each owning at least one share.)

For-profit Corporate Officers – Coverage Requirements for Subcontractors

General contractors routinely require that subcontractors provide proof of their own workers' compensation coverage in order to co-work on the job. This results in many one or two person owned corporations who are not otherwise legally required to include the corporate officer(s) in a workers' compensation policy, being required to purchase and/or include themselves in a workers' compensation insurance policy in order to work for a particular general contractor (Employees).

Nonprofit Executive Officer Coverage Requirements

A not-for-profit entity that is not compensating ANY individuals (including executive officers) for their services is not required to obtain a workers' compensation insurance policy. Please note that compensation includes stipends, room and board, and other "perks" that have monetary value. Money used solely to offset expenses incurred while performing activities for the nonprofit are not counted as stipends.

If a nonprofit has a workers' compensation insurance policy, the uncompensated executive officers of that not-for-profit corporation or unincorporated association are exempt, as long as that nonprofit corporation or association has elected to exclude those individuals from coverage. (Form C-105.52 adobe pdf).

Compensated executive officers of a not-for-profit corporation or unincorporated association are exempt, as long as, the organization is classified as religious, charitable or educational (Section 501(c)(3) under the IRS tax code) and the executive officers perform no manual labor.

Manual labor includes but is not limited to such tasks as filing; carrying materials such as pamphlets, binders, or books; cleaning such as dusting or vacuuming; playing musical instruments; moving furniture; shoveling snow; mowing lawns; and construction of any sort.

All compensated executive officers of a not-for-profit corporation or unincorporated association that is not classified as religious, charitable or educational (Section 501(c)(3) under the IRS tax code) must be covered by a workers' compensation insurance policy.