Are business owners covered under NY DBL?
• Owners/shareholders of Corporations (C-Corps, S-Corps, and Professional Corporations, for example) are considered employees of the corporation and are automatically covered under NY DBL at the same rates as other employees if they are: • 3 or more officers/shareholders • one or two officers (each owning at least one share of stock) with employee(s) (they may choose to exclude themselves from coverage by filing form DB-212.3 ). • Owners/shareholders of the following types of businesses are not considered employees and are therefore excluded from NY DBL coverage by default: • Partnerships, LLCs, LLPs (with or without employees) • Sole Proprietorships • Corporations with only one or two officers (each owning at least one share of stock) and no employee(s). (They may obtain coverage (at voluntary rates) by completing form DB-135 (for non-contributory groups) or DB-136 (for contributory groups).
