How to Buy Workers Comp as a Single-Employee S-Corp

Navigate workers comp requirements for S-corp owner-employees, from state mandates to coverage options and cost calculations.

1. Check your state's owner-employee mandate. Verify whether your state requires S-corp owners to carry workers comp. Roughly 35 states mandate coverage for corporate officers, including S-corp owner-employees. Search '[your state] workers compensation corporate officer requirements' or call your state's workers comp board directly.
2. Calculate your premium using payroll and class codes. Your premium equals (annual payroll ÷ 100) × class code rate. Office workers typically fall under class code 8810 with rates of $0.40-1.20 per $100 of payroll. Construction or manufacturing can run $3.00-12.00 per $100. Minimum premiums usually range $400-800 regardless of actual calculation.
3. Choose between admitted carriers and state funds. Get quotes from admitted insurance carriers licensed in your state, or check if your state operates a workers comp fund. Admitted carriers offer competitive rates for low-risk businesses. State funds serve as insurers of last resort but sometimes offer better rates for single-employee operations.
4. Set appropriate coverage limits and payroll estimates. Most policies require minimum coverage of $100,000 per occurrence and $500,000 aggregate. Estimate your annual W-2 wages conservatively — underestimating triggers audit adjustments and penalties. Overestimating means higher upfront premiums but potential refunds after year-end audit.
5. Complete application and arrange payment. Submit application with your federal EIN, business description, estimated payroll, and prior coverage history. Most insurers require 25-50% down payment, with remaining premiums paid monthly or quarterly. Policy activates immediately upon payment and signed application.