Washington Administrative Code › Title 296 - Labor and Industries, Department of › Chapter 296-17 - General reporting rules, audit and recordkeeping, rates and rating system for Washington workers' compensation insurance › Section 296-17-31007 - Owner/officer coverage and coverage for exempt employments

Current through Register Vol. 24-14, July 15, 2024
(1)
As a business owner, can I buy
			 workers' compensation insurance to cover myself or to cover workers who are
			 exempt from mandatory coverage as defined in
			 RCW
			  51.12.020,
			 51.12.035,
			 or
			 51.12.170?
Yes. Coverage is not required, but is available for sole
				proprietors, partners, qualifying corporate officers, qualifying members of a
				limited liability company, and for exempt employments defined in
RCW
				 51.12.020,
				51.12.035,
				or
				51.12.170
. We refer to this coverage as optional coverage. For owner optional
				coverage, you must meet certain conditions and requirements which are detailed
				on the
application for owner/officer optional coverage.
These
				requirements include:
* Completing an application for optional owner/officer
				coverage;
* Reporting owner/officer hours in the classification assigned
				to your business that is applicable to the work being performed by the
				owner/officer;
* Submitting a supplemental report which lists the name of each
				covered owner/officer; and
* Reporting four hundred eighty hours or actual hours worked
				each quarter for each covered owner/officer and in the applicable workers'
				compensation classification code.
(2)
When will my owner/officer coverage
			 or coverage for exempt employments become effective?
Your coverage will become effective the day after we receive
				your completed and signed application for optional coverage, unless you
				indicate that optional coverage should begin at a later date. Coverage cannot
				begin before the day after we receive your completed application.
(3)
How does cancellation
			 work?
You may cancel your optional owner/officer coverage or elective
			 coverage for exempt employments by notifying the department in writing. For
			 sole proprietors, partners, and LLC partnership model, we will cancel your
			 coverage either the same day we receive your written notice to cancel or on the
			 future date you indicate. For corporations, LLC corporate model, or elective
			 coverage for exempt employment, we will cancel the coverage thirty days from
			 the date we receive your written request to cancel.
The department may cancel optional coverage if any required
				payments have not been made. Cancellation will become effective no later than
				thirty days from the date of the cancellation notice the department sent to the
				employer.
When your account balance is paid, if you want to reestablish
				owner/officer coverage, you must
submit a new application
for
				owner/optional coverage.
(4)
Where can I get an application for
			 owner/officer coverage, or coverage for exempt employments?
There are
			 separate applications for owner/officer optional coverage and coverage for
			 exempt employments. To get these applications, go to
www.lni.wa.gov
, contact your local labor
			 and industries office, or you can call the employer services division at
			 360-902-4817.
Statutory Authority:
				  RCW
				   51.04.020,
				  51.16.035, and
				  51.12.120. 03-23-025, §
				  296-17-31007, filed 11/12/03, effective 1/1/04. Statutory Authority:
				  RCW
				   51.04.020,
				  51.16.035 and
				  51.32.073. 99-24-055, §
				  296-17-31007, filed 11/29/99, effective 12/31/99. Statutory Authority:
				  RCW
				   51.16.035. 99-18-068, § 296-17-31007,
				  filed 8/31/99, effective 10/1/99; 98-18-042, § 296-17-31007, filed
				  8/28/98, effective 10/1/98.