WORKERS´ COMPENSATION INSURANCE FOR OREGON   800.285.8525
     
   

     

Partnerships, limited liability partnerships (LLPs) and limited partnerships

Partnerships , limited liability partnerships, and limited partnerships not in construction or landscaping

A partner in a partnership, a limited liability partnership (LLP), or a general partner in a limited partnership is not personally covered by the policy—unless SAIF receives and accepts a written request for the partner's personal election of coverage and names the partner on a Sole Proprietors, Partners, Officers, and Others Coverage Endorsement.

Note: Limited partners in a limited partnership who are employed by the limited partnership for Oregon work, no matter what industry is involved, are covered under the policy. You must report their actual payroll in the appropriate payroll classification.

Download the Personal Coverage Application for Sole Proprietors, Nonsubject Partners or Nonsubject Limited Liability Company (LLC) Members form

Construction and landscaping partnerships licensed with the CCB or LCB

A partnership, LLP, or limited partnership engaged in construction work regulated by the Construction Contractors Board (CCB) or landscape work regulated by the Landscape Contractors Board (LCB) is limited in the number of employed partners who can be exempt from coverage under the policy.

Partnerships licensed with the appropriate board may designate no more than two partners or one partner for each 10 employees, whichever is greater, as exempt from coverage.

Those who do not meet the following exemption tests are covered under the policy. A partner who meets the following tests may be designated as exempt from coverage.

Exemption tests (must meet both)
  • The partner has a substantial ownership interest. Substantial ownership interest is an ownership of 10 percent or more, or an ownership equal to or greater than the average ownership of all owners, and
  • The partner works for a partnership regulated and licensed by the CCB or the LCB.

You must designate in writing which eligible partners are exempt from coverage and send the designation to SAIF. If you do not file a written designation, SAIF will designate exemptions by applying Oregon law as follows: (1) largest ownership percentage, (2) next largest ownership percentage. If there is more than one partner with the same ownership interest in the sequence of (1) and (2), the order of exemption will be determined by whose birthday falls earlier in the year.

A partnership, LLP or limited partnership whose partners are all members of the same family may exempt any partners who have substantial ownership. "Members of the same family" means persons who each bear one of the following relationships to one of the others: parent, daughter, son, daughter-in-law, son-in-law, grandchild, spouse, sister, or brother.

Partners who are designated exempt from coverage remain exempt as long as the exemption eligibility requirements are met. You can change exemptions by completing a new form.

Download the Designation of Partner or LLC Member Exemption – Construction or Landscape Industries form


Construction and landscaping partnerships not licensed with the CCB or LCB

A partnership, LLP, or limited partnership engaged in construction work regulated by the CCB or LCB and who is not licensed by the appropriate board may not exempt any partners from coverage. All partners are covered and must be reported on your payroll report as indicated in the following section.

Payroll reporting

For policies effective on or after January 1, 2014, partners who have elected coverage, partners not meeting the exemption tests, or partners not designated exempt must report as follows:
  • Annual reportable payroll: $43,200

If your policy period is anything other than a full calendar year in length, multiply $118.36 by the number of days in the policy period. When the partner is covered for a portion of a policy period, multiply $118.36 by the actual number of days of covered work during the policy period. Report the result for the partner's coverage during the policy period.

Please contact us at 800.285.8525 for more information.