Executives, Owners & Partners

Generally, the officers of a corporation are covered. Individual proprietors and partners are not automatically covered, but may elect to be covered. The same is true for partners of Limited Liability Partnerships and Limited Liability Companies.

Executives of a Corporation

All executive officers of a corporation are considered employees and are classified based on the duties they perform. The use of code 8809, "Executive Officers," applies only to executive officers who perform clerical-related duties, and who are subject to minimum and maximum charges. Coverage must be secured for executive officers except as noted below.

Corporations with One or Two Officers

If a corporation has one or two officers, the officer(s) can elect to be excluded from coverage when all of the following conditions exist: the officers are the sole executive officers of the corporation; the officers own all of the issued and outstanding stock of the corporation; each of the two officers must own at least one share of stock in the corporation; the officers hold all the executive offices of the corporation; the corporation has other employees who are required to be covered. The officers are deemed to be covered unless Form U619, electing to exclude such officers from coverage, is filed with NYSIF.

Municipal Corporations

Elected or appointed officers of a municipal corporation are covered only when the municipality files Form U435 with NYSIF, indicating that the elected or appointed officers are to be included.

Not-for-Profit Corporations

Officers of educational, charitable, religious and war veterans’ corporations are not included unless the corporation elects to provide coverage by filing Form U431 with NYSIF. Officers of all other not-for-profit corporations are automatically covered. Premium charges are based on actual wages, subject to the same maximums and minimums as regular corporations. Not-for-profit corporations may elect to exclude unsalaried officers from coverage by filing Form U629.

Inactive Officers

Inactive officers, whether salaried or not, will be included for the fixed amount of $100 per year, under code 8809, "Executive Officers." An officer is considered inactive when all of the following conditions exist: the office is nominal or honorary; the officer does not perform any function of the office; the officer rarely enters the premises except to attend directors' meetings; the officer is not active in New York State.

Not-for-Profit Unincorporated Associations

Officers of not-for-profit unincorporated associations are automatically included under a policy. Premium for executive officers of not-for-profit unincorporated associations is based on the greater of either (1) or (2) below:

  1. The actual payroll of the officer during the policy period (no maximum remuneration applicable); or
  2. A minimum of $250 per week.

Not-for-profit unincorporated associations may elect to exclude unsalaried officers from coverage by filing Form U629 with NYSIF.

Sole Proprietor & Partners

Sole proprietors and partners are excluded from coverage. They may elect to be included for coverage by filing Form U626 with NYSIF if they have other persons covered under a NYSIF policy. Only an individual or partner engaged in a for-profit business can be covered, subject to minimum and maximum charges. Individuals who employ household domestic help cannot cover themselves under their domestic policy since the policy does not cover a for-profit business. In some cases, one partner may elect to be covered while another may not. Note that limited partners cannot be covered under a policy.