Workers' comp exemptions filed the right way, in every state.

In Arizona, sole proprietors and corporate officers can typically exempt themselves from workers' comp requirements. The filing process involves submitting the appropriate exemption form with the Industrial Commission of Arizona and documenting your ownership interest. We handle the full filing process.

No — Texas is the only state where workers' comp is optional for most private employers. Texas operates a non-subscriber system where employers can opt out entirely. However, opting out has significant legal exposure, and many Texas contractors use ghost policies to satisfy COI requirements from clients.

Eligibility depends on your state, business structure, and industry. Sole proprietors are automatically exempt in most states (with exceptions in construction). Corporate officers can often file exemptions if they meet ownership percentage requirements. LLC members may qualify depending on state rules and whether the LLC is member-managed or manager-managed.

The filing process varies by state — most require a specific state form, documentation of ownership, and sometimes a filing fee. In Florida, for example, exemptions are filed with the Division of Workers' Compensation and require annual renewal. We manage the entire process to ensure correct and timely filing.

In many states, yes. Florida is a notable example — exemptions must be renewed every two years (biennially). Missing a renewal deadline means your exemption lapses and you may be required to carry coverage immediately. We track renewal deadlines and handle renewals on your behalf.

If you're required to carry workers' comp but don't have it — and haven't properly filed an exemption — you can face stop-work orders, fines, and personal liability for injured worker claims. State enforcement agencies actively audit and penalize non-compliant businesses, especially in construction.

If your exemption is challenged, the state will review your filing, ownership documentation, and whether you met the eligibility requirements at the time of filing. Improperly filed exemptions can result in retroactive premium assessments and penalties. Having a properly filed exemption with correct documentation is your best defense.

Each involves a different business structure and different state rules. Sole proprietors may be automatically exempt (with industry exceptions). LLC members need a state-specific filing based on their ownership and management role. Corporate officers need to meet ownership percentage requirements and file the appropriate exclusion form with their state's workers' comp regulator.

In some states, family members of business owners (spouse, children, parents) can be excluded from workers' comp coverage under a family exemption. Rules vary significantly by state. We review your specific situation and advise whether a family exclusion applies and how to document it correctly.

No — your exemption only applies to you as an owner. If you hire subcontractors, you need to verify that each subcontractor either has their own workers' comp coverage or has a valid exemption on file. If a subcontractor without coverage is injured on your job, you may be liable for their workers' comp costs.

A ghost policy is a workers' comp policy where the owner is listed but excluded from coverage via an officer exemption — providing a certificate of insurance without the cost of full coverage. It's commonly used when contractors need a COI to satisfy client or general contractor requirements but are otherwise exempt. Costs typically run $800–$2,500 per year.

You can get a COI through a ghost policy — a minimum premium workers' comp policy where you're listed as exempt. This lets you provide a COI to clients or GCs who require proof of workers' comp without paying for full coverage. We arrange ghost policies specifically for this purpose.

Penalties vary by state but can include stop-work orders, fines calculated per day of non-compliance, retroactive premium assessments for the period without coverage, and personal liability for injured worker claims. Florida, for example, assesses penalties of 2x the premium that should have been paid for the period of non-compliance.

Yes — significantly. Most states apply stricter rules to construction industry workers. In Florida, sole proprietors in construction are NOT automatically exempt (unlike in most other industries). Many states cap the number of exempt officers per construction firm. If you're in construction, standard exemption guidance often doesn't apply to you.

Yes. Each state has different filing windows, renewal cycles, and deadline rules. Florida requires biennial renewal. Some states require filing before the work begins. Missing a deadline can leave you without a valid exemption and exposed to penalties. We track deadlines and file proactively so you don't miss a window.

Yes — LLC members in Florida can file an exemption through the Division of Workers' Compensation, subject to the same 10-member cap per company that applies to corporate officers in construction. Non-construction LLC members have different rules. We review your Florida LLC structure and file the correct exemption.

Yes. Contractors Choice Agency is licensed in all 50 states and files workers' comp exemptions for sole proprietors, corporate officers, and LLC members in every state. Rules vary significantly by state, which is why state-specific expertise matters.

Typically 15 minutes by phone or online form. We review your business structure and state, confirm eligibility, and advise you on the exact filing needed. For more complex multi-state situations, we may need a follow-up, but we move fast.

Often yes. Being exempt from workers' comp means you have no coverage if you're injured on the job. Occupational accident insurance, health coverage, and disability insurance can fill that gap for exempt business owners. We advise on the right combination based on your situation and risk tolerance.