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LLC subchapter S corp owner claim
#1
Hi, I am 50% owner of an LLC and back in 2008 we elected our company to be treated as an S corp. We file 1120S form with our company tax returns. I was injured at work and WC  refused to cover my injury because they claim that my business is not a corporation and owners are excluded automatically. Does anybody have an idea about this weird situation of mine?
 
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#2
many states differentiate between an LLC, partnership, and a corporation and rules differ for each.
just as benefits and claims differ by state so do underwriting rules.
i believe it depends on what coverage and endorsements were part of your comp package,
did you notify the change your ownership status with the carrier and get the proper changes added to your coverage?
look at your policy documents, what kind of evidence of officer coverage do you have? is the exclusion language noted somewhere?
look at your premium bills; have you been paying premium on the corporate officer payroll?
if not, it'll be difficult to claim you had thought you had coverage. most comp policies are audited for payroll regularly and officer payroll is often clearly noted by the auditor and/or discussed with your bookkeeper/accountant?
In most states filing your tax return does not do anything to change the comp coverage with your insurance carrier.
depending on the state underwriting laws, officers generally have to elect to be covered and be endorsed onto the policy along with a premium determination agreement.
if you relied on broker information in assuming the coverage, they may have some liability for the lapse.
Reminder :
........Each state has their own comp system; POST YOUR STATE to get accurate information. Use the search feature to find information from similar questions.
THANKS FOR POSTING.
 
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