Are businesses required to carry Workers’ Compensation insurance in Pennsylvania?

Workers' Compensation insurance is required for most employers under Pennsylvania law. Workers' compensation insurance coverage is mandatory if your business employs one or more employees (regardless of employee status, number of hours worked per week, or whether the employee is a spouse or child). However, you may be exempt from carrying workers’ compensation coverage in some situations. Particularly, owners of sole proprietorships and limited liability companies are exempt – owners, not any of their employees – since they are owners and not employees.