Thanks to HB 440, effective August 29, 2011, workers’ compensation coverage will be available to members of an LLC, and partners of a partnership. The bill also formalizes the ability to do so for sole proprietors (while this was already done by the State Workers’ Insurance Fund, the bill codifies that the practice is licit).
How is coverage provided? On a voluntary basis. There is no mandate:
- for insurers to provide coverage, or
- for sole proprietors, LLC members or partners of a partnership to secure coverage for themselves
Sole proprietors, members and partners will be subject to the same minimum and maximum corporate officer payroll as established by carrier underwriting rules filed with the PA Insurance Department.
