Alternative Coverage When Exempt for business owners
Being exempt from workers' comp doesn't mean you should go without injury protection. We place occupational accident, health, and disability coverage for exempt business owners who want to manage their injury risk.
What it covers
- Occupational accident insurance for exempt business owners
- Short-term and long-term disability coverage
- Health insurance coordination
- Accident medical expense coverage
- Death and dismemberment benefits
- Coverage that coordinates with your exemption status
Who it's for
- Sole proprietors exempt from workers' comp who want injury protection
- Corporate officers and LLC members who filed exemptions
- Business owners who want a safety net without full workers' comp cost
- Contractors in high-injury-risk trades who understand the exposure
Why CCA
- We specialize in the coverage gap that exemptions create
- Occupational accident policies placed with specialty carriers
- Coverage designed to work alongside your exempt status
Common questions about alternative coverage when exempt
A workers' comp exemption means you're not required to carry workers' comp — but it doesn't protect you if you're injured. Medical bills, lost income, and rehabilitation costs come out of your pocket. Occupational accident and disability insurance fill that gap at a fraction of the cost of a full WC policy.
Occupational accident insurance is a type of policy that covers medical expenses, disability benefits, and accidental death benefits for injuries that happen while working. It's commonly used by exempt business owners as an alternative to workers' comp.
Workers' comp is a state-mandated benefit system with no-fault coverage and specific benefit formulas. Occupational accident is a private insurance policy with coverage limits you choose and benefit terms defined in the policy — generally less expensive and more flexible than workers' comp.
High-injury-risk trades: roofing, framing, electrical, plumbing, HVAC, general contracting, landscaping, and similar physical trades. Even if you're exempt, the injury risk is real and the financial exposure without coverage can be significant.
Yes — and we recommend it for many exempt business owners. The ghost policy provides a COI to satisfy contractor requirements; the occupational accident policy provides actual injury protection. Together they give you compliance and personal protection.
Our filing fees vary by state and complexity. State filing fees (if any) are typically $50–$100. We charge a service fee for handling the paperwork, documentation, and submission. Call us for current pricing — it's far less than the cost of a workers' comp policy.
Yes. Contractors Choice Agency is licensed in all 50 states and files workers' comp exemptions for sole proprietors, corporate officers, and LLC members nationwide.
Typically we can complete the filing within 1–3 business days of receiving your documentation. State processing times vary — Florida, for example, typically approves exemptions within a few weeks.
We review the denial reason, advise whether you have grounds to appeal or correct the filing, and help you pursue the right path — whether that's refiling, appealing, or placing a ghost policy in the interim.
A ghost policy and an exemption serve different purposes. An exemption removes you from WC requirements. A ghost policy gives you a COI while maintaining your exempt status. Many business owners use both — an exemption plus a ghost policy for COI purposes.
A.M. Best ratings reflect a carrier's financial strength. When we place alternative coverage or ghost policies for exempt business owners, we use A-rated carriers so the coverage is real and the COI will be accepted by general contractors and clients.
Yes. Occupational accident insurance is one of the primary alternatives for exempt business owners who want injury protection without workers' comp. We place occupational accident policies with carriers that specialize in this coverage.
We can review your current exemption status, confirm the filing is on record with your state, and check the renewal date. Many business owners discover their exemption lapsed when they get audited — we prevent that proactively.
Typically: your business name and EIN, state of operation, business structure (sole prop, LLC, corporation), ownership percentage, industry/work type, and the names and ownership percentages of all owners being exempted.
Generally no — your exemption is valid in the state where it was filed. If you work in multiple states, you may need exemptions in each state, or we may recommend a ghost policy that provides multi-state COI coverage.
Yes. Construction is the most common restricted industry — many states have stricter rules or exclusions for construction work. Some states also restrict exemptions in healthcare, staffing, and other high-hazard industries.
If you hire W-2 employees after filing an exemption, your exemption may no longer cover you — and workers' comp becomes required for your employees. We advise you on how to structure coverage when your workforce changes.
Once your exemption is approved and in effect, you can typically cancel the underlying workers' comp policy (if you had one). We advise on the correct timing and help you avoid lapses or penalties during the transition.
Yes. We review your current exemption, assess whether you have the right alternative coverage in place, and advise on any changes to state rules that may affect your status. An annual compliance review is a best practice for exempt business owners.
Pair it with related coverage
Ready to file your workers' comp exemption?
Get guidance in 15 minutes from specialists who know your state's exemption rules — sole proprietors, corporate officers, LLC members, and ghost policies.