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Where We Work

Workers' Comp Insurance by State

Requirements, rates, and state funds change at the state line. We cover 46 states plus the District of Columbia.

Workers’ compensation requirements by state differ on coverage thresholds, penalties, and residual markets. In practice, that means 51 separate rule sets, not one national standard. We have laid out each state’s requirements below. If you place workers in more than one state, start with our workers’ comp for staffing agencies hub.

Ohio, Wyoming, Washington and North Dakota: Monopoly States

In four states — North Dakota, Ohio, Washington, and Wyoming — workers’ compensation is run by the state as a monopoly. Coverage there can only be bought from the state fund, and no private carrier is permitted to sell it. That is the reason those four are missing from our list below.

Everywhere else — 46 states plus DC — employers buy coverage from private carriers competing for the business, and some of those states also run a state fund that competes as one option among several.

Outside those monopolistic states, we place staffing agencies and hard-to-place businesses in the toughest markets like New York, Pennsylvania, New Jersey, California, Illinois, Texas, and Florida.

Operating States

We operate in 46 states plus the District of Columbia. Select a state for its requirements, rate environment, and staffing-specific guidance.

State-Fund States: North Dakota, Ohio, Washington & Wyoming

As noted above, these are the four states that don't allow private workers' compensation coverage. There, you must buy it from the state fund. Even though we cannot sell coverage in those markets, we are able to give you straightforward guidance on how each fund works.

North Dakota

Coverage through WSI (Workforce Safety & Insurance). How staffing firms open an account, and what the fund does and doesn't cover.

North Dakota Guidance

Ohio

Coverage is through the Ohio BWC. Account setup, premium basics, and the employers' liability gap to plan around.

Ohio Guidance

Washington

Coverage through L&I. How hours-based premiums differ from payroll-based states, and what that means for staffing.

Washington Guidance

Wyoming

Coverage through the state fund. Which classes are required to participate, and how multi-state firms handle the rest.

Wyoming Guidance

Operating in one of these states and others too? We'll cover your other states and build your program around your state-fund account. Multi-state coverage →

Common Questions

Answers to the questions we hear most from staffing companies shopping for workers' comp.

Have another question? Contact us →

Why Do Workers' Comp Rules Change So Much From State to State?

Workers' compensation is governed by state law, not federal law. Each state sets its own coverage threshold, its own rules on which owners and officers can be excluded, and the rates insurers use.

We Staff Workers in Multiple States. Do We Need Separate Policies for Each State?

No. Outside the monopolistic states, every state you operate in can be listed and rated on a single program. See how multi-state coverage works →

What Is a Monopolistic State?

Four states — North Dakota, Ohio, Washington, and Wyoming — don't allow private carriers to write required workers' compensation. Employers buy coverage directly from the state fund. Our pages for those states offer guidance, not quotes, including how to run a state-fund account alongside private coverage in the other states where you operate.

Is Workers' Comp Ever Optional for a Staffing Company?

The short answer is, in practice, it is rarely optional. Texas is the main exception: under Labor Code § 406.002(a), most private employers may decline to carry workers' compensation. Staffing firms, however, seldom have that choice, because clients require a certificate of insurance before an agency's employees set foot on their site.

The reason is simple: any employer opens itself to paying a claim when a worker is injured in the course and scope of their employment. Therefore, while workers' compensation insurance is sometimes optional for a staffing company, in the real world it is mandatory.

We Received a Stop-Work Order for Not Having Workers' Compensation Coverage. What Penalty Will We Have and How Do We Fix It?

Every state handles workers' compensation violations differently, but here are a few examples.

Florida: You must stop all work, and operating anyway costs $1,000 per day. The penalty is twice what you would have paid in premium over the preceding 12 months (24 months if payroll was concealed or there was a prior violation), or $1,000, whichever is greater. After you bind coverage and pay $1,000 down, you can get a conditional release and go back to work on a payment plan. First-time violators can reduce the penalty with the premium credit (the 21-day deadline applies), a 25% records-compliance reduction, and a 15% tutorial reduction.

New Jersey: Work stops until you're insured and the penalty is paid. Being uninsured costs up to $5,000 per 10-day period. Defying the order costs $1,000 to $5,000 per day. You have 10 days to request a hearing, and the order carries over to any successor company.

New York: All operations stop until the Board lifts the order. Penalties can reach $2,000 per 10-day period. Once you're insured, the Board may use your premium to reduce the penalty and offer an interest-free payment plan of up to a year.

Pennsylvania: PA treats this as a criminal matter. Each uninsured day is a separate offense, punishable by up to $2,500 and a year in jail. If the failure is intentional, it becomes a felony.

California: You can't use employee labor until you're covered. The penalty starts at $1,500 per employee. If you were uninsured for more than a week in the prior year, it becomes the greater of twice the premium you would have paid or $1,500 per employee. Violating the stop order is a misdemeanor with up to $10,000 in fines.

In every state, the first step is the same: get coverage immediately. States don't look kindly on a violator who does not feverishly work to secure a policy. If this is you, call NPN Brokers; we work expeditiously to get you covered quickly.