What is a monopolistic state?
Monopolistic states require businesses to purchase workers' comp insurance through a state-run fund. There are currently four monopolistic states for workers' compensation: Ohio, North Dakota, Washington, and Wyoming. State-run workers' comp provides the same protection as a private insurance policy, covering lost wages and medical expenses when employees get injured or sick on the job.
How workers' compensation works in monopolistic states
In monopolistic states, workers' compensation policies are administered by the state rather than private insurance companies. The state registers businesses, evaluates coverage needs, collects premiums, and handles claims. It also regulates costs.
Learn more about the four monopolistic state workers' compensation funds and which departments to contact for information:
Ohio workers' comp
Businesses in Ohio are required to provide state-funded or self-insured workers' compensation for all employees. The Ohio Bureau of Workers' Compensation (BWC) manages the state program, from collecting premiums to administering claims.
Out-of-state employers must meet various requirements to be exempt from the BWC. For instance, employers can opt out of BWC coverage if the employee works in Ohio fewer than 90 days per year.
Once you've secured workers' comp, explore other types of business insurance in Ohio for additional coverage options.
North Dakota workers' comp
North Dakota requires all employers to provide workers' comp insurance to full-time, part-time, seasonal, and occasional workers. Businesses must have a policy before employees are hired. The program is supervised by North Dakota Workforce Safety & Insurance.
Out-of-state employers need to have state workers' comp if 25% of an employee's wages are for in-state work or if 25% of the company's annual payroll is for work done in North Dakota.
In addition to workers' comp from a monopolistic fund, you might want other types of insurance to protect your business. Explore business insurance in North Dakota to learn more.
Washington workers' comp
Washington employers are assigned an account manager from the state's Department of Labor & Industries (L&I) to classify their business and set up a policy. Employers can pay premiums to the state-run fund or become a certified self-insurer.
If an out-of-state company has employees that work in Washington, L&I will decide on a case-by-case basis if they need state workers' comp. It may be required if the company has employees who live and work in Washington usually require it.
Even though you have to secure workers' compensation from the state, Progressive can help connect your company with other kinds of business insurance in Washington.
Wyoming workers' comp
The Wyoming Department of Workforce Services manages workers' compensation. Any business that employs people in Wyoming must register with the department, which determines whether coverage is required.
Out-of-state businesses may be exempt from obtaining a state workers' comp policy, depending on the employee, type of work, and workers' comp insurance already in place.
Once you have workers' comp, you can explore different types of business insurance in Wyoming to make sure you're protected.
Out-of-state business rules in monopolistic states
If your company is located outside a monopolistic state but conducts business in Ohio, North Dakota, Washington, or Wyoming, register with the state to learn your options for workers' comp insurance. Often, employers can take advantage of reciprocal programs in nearby states or use existing workers' comp coverage. Understanding the regulations where you work can prevent costly violations.
What is stop gap coverage in monopolistic states?
Stop gap coverage is additional insurance for businesses operating in monopolistic states. Workers' comp policies from private insurers typically protect against employee lawsuits involving injury and illness on the job. In monopolistic states, you might need an endorsement or an additional policy to get the coverage you need.
Speak to an insurance expert to learn more.
