Monopolistic state fund

Four states run monopolistic workers' compensation systems: North Dakota, Ohio, Washington and Wyoming. Private insurers may not write workers' comp for in-state workers there. Employers buy from the state fund or, where the state allows it, qualify to self-insure. Wyoming has a quirk: coverage is mandatory only for listed "extra-hazardous" work, and that must come from the state fund, while employers in other industries may elect the fund or seek a private carrier (Wyoming Legislative Service Office, 2023).

The funds set their own classifications, rates and rating plans rather than using NCCI's. That matters for a multi-state employer. A private policy's other states coverage excludes these four states, so a contractor sending a crew to Ohio needs a state fund policy there. Fund policies also omit employers' liability. That gap is filled with stop gap coverage, a separate endorsement or policy, and employers often miss it until a worker sues.

Self-insurance rules differ: Ohio and Washington let qualified employers self-insure, while Wyoming does not for its mandatory extra-hazardous coverage. Premiums, benefits and claims procedures follow each state's own system, so a private carrier's quote for a multi-state account cannot include these four states. The guides on Monopolistic state funds: workers' comp in ND, OH, WA and WY and stop gap coverage in monopolistic states cover the details state by state.