Wisconsin statutes allow sole proprietors, partners or members to elect to cover themselves by a workers compensation policy. Officers of corporations (with fewer than 10 stockholders) are automatically included for coverage, but up to 2 officers may exclude themselves from coverage.
Before you decide to exclude yourself from workers compensation benefits, it is a good idea to check your health insurance and disability insurance policies to be sure a work-related exclusion does not exist. Policies are not uniform in how this language reads. Insurance policies will commonly exclude any loss that’s covered by workers compensation. Some will state that the exclusion does not apply if workers compensation is “available” or “payable” to you.
Workers compensation benefits not only pay for medical expenses but also income replacement in the event you are unable to return to work either on a short-term or long-term basis. Those excluding themselves from workers compensation may want to consider disability insurance in addition to health insurance to address both aspects of work-related injuries.
It is important to address this question with your health and/or disability insurance provider so any gaps in coverage may be addressed in advance. Once you are excluded (or have not elected to be covered) from the workers compensation policy, work-related injuries and illnesses will not be covered. It’s important to know how your health or disability policy will respond to a work-related incident.
Please contact your R&R Knowledge Broker if you have any questions or would like to discuss further.
