Wyoming business insurance requirements

Wyoming is the odd one out among the four monopolistic workers' comp states. Like North Dakota, Ohio and Washington, it sells comp through an exclusive state fund, and like North Dakota it bars self-insurance for employers that must be covered. Unlike any of them, it requires coverage only for employment the law calls "extrahazardous," a long list defined by industry code. A business outside that list may go without comp, elect fund coverage or buy from a private insurer. And a fund policy pays statutory benefits only, so every fund employer needs stop gap employers' liability from a private carrier.

Workers' compensation requirements

The Worker's Compensation Act applies to "extrahazardous employment," which W.S. 27-14-108(a) defines by sector, subsector or industry in the current North American Industry Classification System, "regardless of individual occupation." The list covers logging, mining, utilities, construction, manufacturing, air, truck and pipeline transportation, couriers and warehousing, health care and social assistance, arts and recreation, accommodation and food services, and narrower pieces of other sectors: auto dealers, gas stations and fuel dealers, some wholesalers, building materials dealers, landlords (lessors of real estate), auto rental, security and building services, waste management, repair and maintenance, dry cleaning and pet care, plus listed public safety work (Title 27). Sectors such as finance and insurance, professional services and most retail and wholesale trade are left out. If your NAICS code is on the list, coverage is required from your first employee, and it must come from the state fund.

Employers not on the list "may elect to provide workers' compensation insurance for their employees but are not required to," and may get it from the fund or "seek coverage with a private carrier," according to a June 5, 2023 Wyoming Legislative Service Office memo (LSO). An employer electing fund coverage must cover all its employees and keep the coverage at least two years before withdrawing (27-14-108(j)). The Department of Insurance confirms that exempt employers "may purchase workers' compensation insurance from private insurers" (DOI). Every business that works in Wyoming or hires a Wyoming resident must still register with the Department of Workforce Services, which decides whether it is required, optional or not liable (DWS).

Owners are out unless they opt in. Sole proprietors, partners, corporate officers and LLC members are not employees unless the business elects coverage in writing at registration or 30 days before a calendar quarter; an owner election also brings in all other employees, and it cannot be dropped for eight quarters (27-14-108(k)). Covered owners are charged on the statewide average wage, $5,620.33 a month for the fourth quarter of 2026 (DWS). See can owners and officers exclude themselves from workers' comp?.

On private jobs, a contractor that subcontracts work is liable for the sub's unpaid fund premiums and can recover them from the sub; on public jobs it must get certification that the sub's fund account is in good standing before the sub starts work (27-14-206). Ask every sub for a current certificate from the Division.

An employer that fails to apply for coverage, or does not pay premiums within 30 days, is liable to the state for every award made to an injured employee, owes 1% a month interest, and can face liens, collection suits and an injunction shutting down the business (27-14-203). It also loses tort immunity, so the injured worker can sue it directly (27-14-104(c)).

The state fund and stop gap coverage

The Department of Workforce Services runs the fund, which is financed entirely by premiums and investment income. Its consulting actuary sets base rates by NAICS class with the Governor's written approval; the statute caps an employer's yearly base-rate increase at 50%, and employers move from base rates to experience rating after three years (LSO memo). For 2026 every industry base rate went down, by 2.3% to 27.6% across the 127 NAICS classes in the Department's table: clerical office work fell from 0.34 to 0.31 per $100 of payroll, construction of buildings from 3.39 to 2.55, and food services and drinking places from 1.41 to 1.11 (DWS base rates). NCCI's experience rating plan does not apply in the monopolistic states, so a mod earned elsewhere does not carry over; see experience modification rate. Wyoming has reciprocal agreements with Idaho, Montana, North Dakota, South Dakota, Ohio, Oregon, Utah, Washington and Nevada for workers temporarily crossing state lines (DWS); see employees in several states: other-states coverage and multistate workers' comp.

A fund account pays medical, wage-loss, disability and death benefits but includes no employers' liability. Third-party-over suits, spouse consortium claims and dual-capacity suits fall outside it, and the general liability policy excludes employee injury. Add stop gap coverage to your general liability or multistate comp policy, scheduled for Wyoming, at the limit your contracts require. Employers outside the extra-hazardous list that choose not to insure face a bigger gap: their employees keep the right to sue them in negligence. See stop gap coverage in monopolistic states, Monopolistic state funds: workers' comp in ND, OH, WA and WY and workers' compensation insurance: how it works.

Disability and paid leave mandates

Wyoming has no state disability insurance program and no paid family and medical leave program. Short-term disability is a voluntary benefit. Employers with staff in leave states should check state disability and paid family leave programs: every mandate in 2026.

Commercial auto requirements

A Wyoming liability policy must cover at least $25,000 per person and $50,000 per accident for bodily injury and $20,000 for property damage (W.S. 31-9-405, Title 31). Long highway miles, heavy energy-sector trucks and winter driving make those minimums too thin for most fleets. Interstate for-hire carriers need at least $750,000; see FMCSA insurance requirements and filings for motor carriers and commercial auto insurance: what it covers and what it leaves out.

The business insurance market in Wyoming

Wildfire, hail and winter storms are the main property exposures. FEMA declared a major disaster for wildfires from August 21 to 31, 2024 (DR-4845) and issued fire management assistance declarations for the Elk Fire in 2024 and the Red Canyon Fire in August 2025 (FEMA). Wyoming has no FAIR plan; none appears on the Department of Insurance's site or among the plans in the Property Insurance Plans Service Office's member list (PIPSO); hard-to-place property generally goes to the surplus lines market. Surplus lines brokers collect a 3% tax on gross premiums, less return premiums, and pay it quarterly with their affidavit report, with 9% annual interest on late tax and fines of up to $25 a day for late reports (W.S. 26-11-118, 26-11-119). See surplus lines taxes, stamping fees and diligent search.

Liability law that affects premiums

A claimant recovers, reduced by their share, only if their fault is not more than 50% of the total fault of all actors, and each defendant pays only its own proportion of fault, with no joint and several liability (W.S. 1-1-109, Title 1).

Wyoming's limitation periods are long. Injury claims not arising on contract, including personal injury and damage to personal property, have four years; written contracts 10 years; and unwritten contracts eight (W.S. 1-3-105).

Where to get help

• Department of Insurance (doi.wyo.gov): main line 307-777-7401; consumer affairs 307-777-7402 or toll free 800-438-5768. File a complaint through the department's online consumer portal (consumers). It regulates the private insurers that sell comp to optional employers.
• Department of Workforce Services, Workers' Compensation Division (dws.wyo.gov): employer services 307-777-6763, claims 307-777-7441, fraud hotline 888-996-9226. Register at WYUI.wyo.gov before starting work, and ask the Division whether your NAICS code is extra-hazardous.

Confirm your obligations with the Division or a licensed broker, and compare states with the workers' comp and benefits requirements by state.