West Virginia Workers’ Comp Exemption
We file workers’ compensation exemptions for West Virginia sole proprietors, LLC members, and corporate officers. Send us your details and we’ll confirm whether you qualify and handle the filing.
When coverage is required in West Virginia
Coverage is mandatory for essentially all employers who employ one or more employees in West Virginia (W. Va. Code 23-2-1(a)), subject to limited specific exemptions enumerated at W. Va. Code 23-2-1(b)(1) through (8). West Virginia's market has been a competitive, private-carrier market since the state fund (formerly run by BrickStreet Insurance as the transitional sole writer) was fully opened to competition in 2008 -- it is NOT monopolistic today (this was a monopolistic state fund only prior to privatization completed in 2008).
Who can be excluded in West Virginia
Sole proprietors
Covered by the same 'one or more employees' trigger for their WORKERS, but the sole proprietor's own coverage of themselves is addressed via W. Va. Code 23-2-1(g)(2), which says coverage is not required for certain sole proprietors, members, and officers. A sole proprietor with genuinely no employees (only independent contractors) may apply to the Insurance Commissioner for a formal Application for Exemption, but approval requires proving that ALL workers performing services for the business are true independent contractors (the burden of proof is on the employer) -- the fact of being a sole proprietor with no W-2 employees does not by itself grant exemption without going through this application/approval process if any question of employee status exists.
Partners
Partners are covered by the same W. Va. Code 23-2-1(g)(2) provision referenced for sole proprietors; the Application for Exemption form requires listing all partners with percent ownership and indicating election of coverage or not, and (for partnerships/LLCs) the application must be signed by ALL general partners or members.
LLC members
Same framework as partners -- addressed under W. Va. Code 23-2-1(g)(2); LLC applications for exemption must be signed by all members.
Corporate officers
For corporations and associations, ONLY the following principal officer titles are exempt from required coverage, regardless of whether they also perform employee-type work: president, vice-president, secretary, and treasurer. There is no separate numerical cap beyond limiting exemption to those four specific officer roles -- an officer holding a different title does not qualify for this exemption. A corporate officer who is excluded/elects out of coverage is not entitled to Workers' Compensation Act benefits. 'S' Corporations must list ALL individuals legally associated with the entity on the exemption application, and the application must be signed by the president (or VP) AND secretary of the corporation.
Construction rules in West Virginia
No separate headcount threshold for construction employers was found (the general 'one or more employees' rule applies uniformly). However, W. Va. Code 23-2-1d (effective July 10, 2009) requires that a subcontractor provide the prime/general contractor with proof of continuing workers' comp coverage (a certificate showing current, renewal, or replacement coverage) for the duration of the contract, and must notify the prime contractor within two business days of any cancellation or expiration of that coverage.
How the exemption is filed
Exemption is a genuine state-filed process (not merely a policy endorsement): the employer (or qualifying owner/officer) files an Application for Exemption from WV Workers' Compensation Coverage with the WV Offices of the Insurance Commissioner, Employer Coverage Division. The application must be notarized, and a $25.00 application fee is required or the application cannot be processed. It must state which specific statutory exemption under 23-2-1(b)(1)-(8) applies (or otherwise establish the employer doesn't fall under 23-2-1(a) at all), and must list all owners/partners/officers/members with SSNs, ownership percentages, and whether each elects coverage or not. If claiming independent-contractor status as the basis, a separate signed Addendum for each independent contractor is also required. The Commissioner retains an ongoing right to audit/inspect (tax, payroll, financial records) to confirm continued eligibility, and the applicant must notify the Commissioner in writing of any change in circumstances (e.g., hiring even a single new employee). Knowingly making false statements on the application is a felony (up to 3 years imprisonment, up to $10,000 fine, under W. Va. Code 61-3-24e(5)).
- Statute
- W. Va. Code 23-2-1(a) (mandatory coverage), 23-2-1(b)(1)-(8) (specific exemptions), 23-2-1(g)(2) (sole proprietor/member/officer exemption), 23-2-1d (subcontractor proof-of-coverage requirement), 61-3-24e(5) (false statement penalty); W. Va. Code St. R. 85-8-1 et seq.
- Market
- Competitive — coverage is bought from a private carrier.
Notes and open questions
West Virginia runs a genuine state exemption REGISTRY (a rarity among these regimes) rather than a simple default-exclusion/policy-endorsement approach -- an actual application, notarized, with a $25 fee, reviewed and approved/denied by the Insurance Commissioner, subject to ongoing audit. The form itself is dated 'Rev. 2/25/2011,' so confirm with OIC that this exact version is still current before publishing a form-download link. West Virginia was historically monopolistic (state fund via the old Workers' Compensation Commission, then BrickStreet as transitional sole carrier) but has been a competitive private-carrier market since the market fully opened in 2008 -- do not describe it as monopolistic today.
Sources
- https://www.wvinsurance.gov/Portals/0/pdf/wc/forms/Application%20for%20Exemption%2002-25-2011.pdf
- https://www.wvinsurance.gov/Portals/0/pdf/pol_leg/rules/wc/85CSR8.pdf
- https://agentsync.io/blog/industry-news/west-virginia-insurance-commissioner
Source material dated Application for Exemption form dated 02/25/2011 (most recent version located); privatization-to-competitive-market completed 2008. Compiled from official West Virginia sources as a starting point, not legal advice — rules change, and your situation may turn on facts this page cannot see. Confirm with West Virginia Offices of the Insurance Commissioner (OIC), Employer Coverage Division or ask us and we’ll check it for you.
Workers' comp exemption filing in West Virginia
Tell us about your West Virginia business and we'll confirm whether you qualify for an exemption.