Will Pennsylvania Offer Workers’ Compensation Coverage to Small Business Owners?

The InsuranceJournal.com has reported the Pennsylvania insurance agents are asking lawmakers to pass legislation that will allow insurers to cover owners or partners of small businesses through a workers’ compensation policy.

Although this legislation was introduced last year to the general assembly, it failed to make it out of committee. Kari Kissinger, government affairs director for the Insurance Agents & Brokers Group in Pennsylvania, is optimistic this year, saying, “Insurers have supported it in the past and we anticipate that they will do the same this session.”

The legislation would change the insurance laws in the state of Pennsylvania, to allow coverage for sole proprietors, partners of a partnership, or officers of a limited liability company.

Some agents say the lack of this type of coverage can create problems for their clients. For instance, if they have a client that wants to use a consultant or small contractor, risk management practices might require that they provide certificates of workers’ comp insurance from them. But those consultants and small contractors might not be able to buy it.

There have also been cases when small business owners have been injured on the job and because they were ineligible for workers’ comp coverage, ended up suffering significant losses to their business and personal wealth.

We’ll wait to see if legislators give small business owners the opportunity to buy this type of coverage.