REDOUBTWorkers' compensation insuranceCall 385-375-7655

Which market, which state?

What are the monopolistic states for workers' comp?

Four: North Dakota, Ohio, Washington, and Wyoming, where workers' comp comes from a state fund. Private insurers cannot write it in North Dakota, Ohio, or Washington; Ohio and Washington also allow qualified self-insurance. In Wyoming, DWS coverage is required for extra-hazardous industries such as construction; other employers may elect it. No state fund policy includes employers liability, so employers usually add stop-gap coverage.

Updated September 29, 2026. Written by Andre Beukers, principal at Redoubt, a commercial insurance agency in Salt Lake City, not a government office.

Can I buy workers' comp from a private insurer in North Dakota, Ohio, Washington, or Wyoming?

No. North Dakota WSI says state law "does not allow private insurers to underwrite workers' compensation insurance." Washington L&I says the state "does not allow private workers' compensation coverage." Ohio Revised Code 4123.82 voids contracts that insure an employer against Ohio compensation liability. Wyoming requires coverage through DWS for the industries its statute lists as extra-hazardous (Wyo. Stat. 27-14-108); other employers may elect it.

Ohio and Washington also allow self-insurance for employers that qualify financially: Ohio grants self-insuring status under ORC 4123.35, and Washington L&I certifies self-insured employers.

What changes for my business if I have workers in one of these states?

You open an account with the state agency, and it rates you on its own classes, not a private carrier's filing (NDCC 65-04-01, ORC 4123.35, Wyo. Stat. 27-14-201). Premium is figured differently in each:

Washington charges by hours worked, reported quarterly, and lets you deduct part of it from workers' pay (L&I Employers' Guide).
North Dakota caps payroll counted per employee at 70% of the statewide average annual wage (NDCC 65-04-04.2).
Ohio bills estimated premium in June, before the policy year starts, then settles up on reported payroll (ORC 4123.35).
Wyoming takes payroll reports monthly, or quarterly with approval (Wyo. Stat. 27-14-202).

What is stop-gap coverage in monopolistic states, and do I need it?

Part Two of a standard workers' comp policy, employers liability, pays damages when an injured employee's family member, or a third party held liable for the injury, sues the employer (WC 00 00 00 C, Part Two). The Indiana Compensation Rating Bureau puts it plainly: "Monopolistic state funds do not provide employers liability coverage." Stop-gap fills that gap.

If you carry a private workers' comp policy for other states, your carrier can add NCCI's Employers Liability Coverage Endorsement, WC 00 03 03, for work in the monopolistic states on its schedule (Ohio has its own, WC 34 03 01). If your only comp is a state fund policy, stop-gap usually goes on your general liability policy as an endorsement. You need it when a contract or lease asks for employers liability limits, and a state fund certificate shows none.

My business is based in another state. Does my policy cover an employee in Washington or Ohio?

Not for anyone based there. The Basic Manual rule, as published by the North Carolina Rate Bureau, says monopolistic state fund states "should not be named or designated in Item 3.A. and/or 3.C." of a private policy. What each state asks:

Washington: an employee who lives there and teleworks is based there, and needs an L&I account. Workers from reciprocal states, including Utah and Idaho, can work there temporarily on home-state coverage.
North Dakota: an employer with "significant contacts" with the state, or that hires there, must get WSI coverage.
Ohio: an out-of-state resident insured at home and in Ohio only temporarily stays under home-state law (ORC 4123.54(H)(5)). Beyond that, ask BWC first.
Wyoming: anyone working in Wyoming or hiring a Wyoming resident must register with DWS, which decides the coverage.

Monopolistic vs. competitive state funds: what is the difference?

A state fund that sells workers' comp alongside private insurers. California's State Compensation Insurance Fund must be "fairly competitive with other insurers" (Cal. Ins. Code 11775), and Montana State Fund exists as "an option for employers" and must insure any Montana employer that asks (MCA 39-71-2313). In those states you can compare the fund's quote with private carriers'. In the four monopolistic states there is nothing to compare.

Side by side

State fund vs private carrier: what differs?

How the four state funds differ from the private market.

Question	Monopolistic state fund (ND, OH, WA, WY)	Private carrier or competitive fund
Can I shop on price?	No. One seller. Ohio and Washington also allow qualified self-insurance (ORC 4123.35; L&I).	Yes. Carriers compete, and some state funds quote too.
Classes and rates	The fund's own. Washington charges by hours.	The state's rating bureau classes, NCCI in Utah and many states.
Employers liability	Not included. Add stop-gap.	Included as Part Two.
Workers traveling out of state	Limited. North Dakota's All States Coverage covers trips up to 30 days, excluding OH, WA, and WY.	Other-states coverage can list any state except the four.

Requirements depend on the business, the worker setup, and current instructions from each state agency.

Sources

Where these answers come from

Statutes, state agencies, and rating bureaus. Requirements depend on the business, the worker setup, and the current instructions of the state agency, so check the source for your state before acting.

North Dakota WSI: Out-of-State Employers Working in North DakotaWSI as sole provider; the significant-contacts rule.North Dakota WSI: All States Coverage30-day travel coverage, excluding OH, WA, and WY; no employers liability.North Dakota Century Code chapter 65-04Classes and rates (65-04-01); limited payroll (65-04-04.2).Ohio Revised Code 4123.35Premium into the state insurance fund; self-insuring employers.Ohio Revised Code 4123.82Private contracts insuring Ohio compensation liability are void.Ohio Revised Code 4123.54Out-of-state residents working temporarily in Ohio, division (H)(5).Washington L&I: Do I Need a Workers' Comp Account?No private coverage; premiums based on industry and workers' hours.Washington L&I: Out-of-State Employers and Out-of-State WorkersWhere an employee is based, telework, and reciprocal states.Washington L&I: Employers' Guide to Workers' Compensation InsuranceHours reporting and the worker share of premium.Wyoming DWS: Workers' Compensation for EmployersCoverage through DWS required for extra-hazardous industries.Wyoming DWS: New EmployersRegistration for businesses working in Wyoming or hiring Wyoming residents.Wyoming Statutes Title 2727-14-108 extra-hazardous employment; 27-14-201, -202, -207.NCCI Workers Compensation and Employers Liability Insurance Policy WC 00 00 00 C (via the Massachusetts rating bureau)Part Two: damages owed to a third party or an injured employee's family.NCCI Employers Liability Coverage Endorsement WC 00 03 03 C (via the Massachusetts rating bureau)Part Two for work in scheduled states, Part One excluded.Indiana Compensation Rating Bureau: Employers Liability, Stop GapWhy the gap exists; WC 00 03 03, Ohio's WC 34 03 01, and the GL route.North Carolina Rate Bureau Basic Manual, Rule 5Monopolistic states cannot be listed in Items 3.A or 3.C.California Insurance Code 11775State Compensation Insurance Fund competes with other insurers.Montana Code Annotated 39-71-2313Montana State Fund as an option; must insure employers that ask.

The next question

Workers’ compensation insurance: every question, every stateThe hub: the 51-state requirement table and the nine buyer questions.Employees working in another stateRemote and traveling staff, and other-states coverage on a private policy.Washington workers' comp requirementsL&I accounts, hours reporting, and who must be covered.Ohio workers' comp requirementsBWC coverage, self-insurance, and penalties.North Dakota workers' comp requirementsWSI coverage and what it asks of out-of-state employers.Wyoming workers' comp requirementsExtra-hazardous industries and DWS registration.How much does workers' comp cost?Rate per $100 of payroll and what moves it.General liability insuranceThe policy a stop-gap endorsement usually rides on.

By state

Workers’ comp requirements in every state

Each state page gives the employee threshold, the owner and officer exemptions, the penalty for going without, the rating bureau, the market, the enforcing agency, and the exemption filing, each with its statute or agency source.

Frequently asked questions

Monopolistic states FAQ

What are the four monopolistic workers' comp states?+

North Dakota, Ohio, Washington, and Wyoming. Coverage comes from North Dakota WSI, the Ohio BWC, Washington L&I, and Wyoming's Department of Workforce Services.

Do I need a Washington L&I account for a remote employee who lives there?+

Generally yes. L&I treats an employee who lives in Washington and teleworks from there as based in Washington, and a Washington-based employee needs a Washington account.

Does Ohio allow self-insurance for workers' comp?+

Yes, for employers that show the financial ability to pay claims. The Ohio administrator grants self-insuring status under ORC 4123.35. Washington L&I also certifies self-insured employers.

Talk to Redoubt

Have workers in North Dakota, Ohio, Washington, or Wyoming?

Tell us where your people live and work and what you carry now. We will check whether you need stop-gap and what each state agency will ask for.

Talk to Redoubt Call 385-375-7655

This is general insurance information, not legal advice or a coverage determination. Statutes, agency instructions, policy forms, and the facts of the business control.