Monopolistic States: How Workers’ Comp Works in OH, WA, WY & ND

Four states — Ohio, Washington, Wyoming, and North Dakota — don’t let private insurers sell workers’ compensation at all. Coverage comes exclusively from the state fund: Ohio’s BWC, Washington’s L&I, and the state funds in Wyoming and North Dakota. If you operate or hire in these states, the rules of engagement change completely.

What monopolistic means in practice

You buy comp directly from the state agency, not through carriers — and not through this or any agency’s carrier markets

Rates, classifications, and programs are set by the state fund’s own system

Stop-gap coverage matters: state fund policies generally exclude employers liability — the lawsuit side of a standard comp policy — so businesses buy ‘stop-gap employers liability’ from their private general liability carrier to fill the hole

Multi-state employers need coordination: your NCCI-state policy doesn’t cover your Ohio payroll, and vice versa

The multi-state trap

The classic mistake: a Pennsylvania contractor takes a job in Ohio assuming their comp travels with them. It doesn’t — Ohio payroll needs BWC coverage, and the reverse applies to Ohio businesses sending crews out of state, whose BWC coverage may not follow them everywhere. If your crews cross into or out of a monopolistic state, the coverage map needs drawing before the work starts, not after an injury.

What we do for clients in these states

We can’t sell you the state fund policy — nobody private can. What we do: coordinate your multi-state program so every state’s payroll is covered by the right system, place stop-gap employers liability with your other lines, and keep your private-market coverage in the other 46 states built correctly around the state-fund states. See our state guides for context, including Pennsylvania and Michigan for the states bordering Ohio.

Crews crossing state lines? Have us map your multi-state coverage before the next job does it the hard way.