Comparison
Monopolistic vs. Competitive State Workers' Comp
Ohio, North Dakota, Washington, and Wyoming are monopolistic states, meaning workers' comp must be purchased through the state fund rather than a private carrier. All other states are competitive, where private carriers write the coverage. In Ohio, our agency can still write stop-gap employer's liability coverage.
In a monopolistic state, employers are required to buy workers' compensation exclusively from the state's own fund; no private insurer is permitted to sell the primary workers' comp policy there. There are four monopolistic states: Ohio, North Dakota, Washington, and Wyoming. Because these state funds generally do not include an Employer's Liability component the way a standard private workers' comp policy does, employers in monopolistic states typically need a separate stop-gap endorsement, often added to a general liability policy, to cover the kinds of employment-related lawsuits that Employer's Liability would otherwise address.
Every other state is a competitive state, where private insurance carriers -- and in some cases a competitive state fund alongside them -- write workers' comp coverage directly, and businesses can shop and compare among them. In Ohio specifically, our agency does not sell the primary workers' comp policy, since that must go through the Ohio Bureau of Workers' Compensation, but we can write stop-gap employer's liability coverage for Ohio businesses to help fill that gap.
The options
Monopolistic State (OH, ND, WA, WY)
Workers' comp must be purchased through the state fund; private carriers cannot write the primary policy.
Pros
- Provides a single, consistent source of coverage for every employer in the state
- State fund pricing and rules are standardized statewide
- Removes the need to shop among competing carriers for the primary policy
Cons
- No choice of private carrier for the primary workers' comp policy
- Typically excludes Employer's Liability coverage, requiring a separate stop-gap endorsement
- Less flexibility in program design compared with competitive-state options
Best for
- Any employer operating in Ohio, North Dakota, Washington, or Wyoming, by legal requirement
- Businesses that also need to add stop-gap coverage through an agency
Competitive State (all other states)
Private carriers, and sometimes a competitive state fund, write and compete for workers' comp business.
Pros
- Businesses can shop and compare multiple carriers
- Employer's Liability is typically built into the standard policy
- More flexibility in billing, program design, and safety services
Cons
- Underwriting appetite and pricing vary by carrier and by business
- Comparing multiple carriers takes more upfront legwork than a single state-fund option
- Coverage terms and pricing are not standardized statewide the way a monopolistic fund's are
Best for
- Employers in any of the 46 competitive states and the District of Columbia
- Businesses that want to compare multiple carrier options
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Side by side
| Feature | Monopolistic State (OH, ND, WA, WY) | Competitive State (all other states) |
|---|---|---|
| Who can write the primary policy | Only the state fund | Private carriers (and sometimes a competitive state fund) |
| Number of states | 4: Ohio, North Dakota, Washington, Wyoming | All other states and DC |
| Includes Employer's Liability | Typically no; needs a separate stop-gap endorsement | Yes, typically included |
| Can you compare carriers | No, for the primary policy | Yes |
| What our agency can write there | Stop-gap employer's liability coverage in Ohio | Full workers' comp placement |
| Texas note | N/A | Texas allows employers to opt out as a non-subscriber; we do not sell primary Ohio-style monopolistic coverage there since Texas isn't monopolistic |
The bottom line
If your business operates in Ohio, North Dakota, Washington, or Wyoming, the primary workers' comp policy has to come from that state's fund, not from a private carrier, and no agency can change that. What an agency can still help with in Ohio is stop-gap employer's liability coverage, which fills the gap the state fund leaves around workplace-injury lawsuits. In every other state, you have a genuine choice among private carriers, and comparing several of them is usually worthwhile.
Frequently asked questions
Which states are monopolistic for workers' comp?
Ohio, North Dakota, Washington, and Wyoming. In these states, the primary workers' comp policy must be purchased through the state fund rather than a private carrier.
Can your agency write my primary Ohio workers' comp policy?
No. In Ohio, primary workers' comp coverage must be purchased through the Ohio Bureau of Workers' Compensation; we do not sell that primary policy.
What can your agency do for an Ohio employer?
We can write stop-gap employer's liability coverage, which fills the gap left because the Ohio state fund does not include Employer's Liability protection.
Is Texas a monopolistic state?
No. Texas is a competitive state, and it is also unique in allowing many private employers to opt out of workers' comp entirely as non-subscribers, which is a separate concept from monopolistic states.
What is stop-gap coverage?
Stop-gap coverage, also called employer's liability insurance, covers certain employment-related lawsuits that a monopolistic state fund's workers' comp policy does not include on its own.
Last reviewed · Reviewed by Provident Financial Group licensed agents
Compare up to 10 carriers in minutes.
One application goes out to every carrier we can access for your class of business. You get a ranked comparison you can review and purchase online — with a licensed agent available whenever you want one.
Mon–Fri, 8:00am–6:00pm ET · Independent agency licensed in 23 states