Monopolistic States: How Workers’ Comp Works Differently in ND, OH, WA, and WY
5 min read · Updated June 20, 2026
Most states let you buy workers’ comp from private insurers. Four don’t. If you operate in a “monopolistic” state — or hire subs who do — the coverage works differently enough to catch you out. Here’s what changes.
What “monopolistic” means
In a monopolistic state, workers’ comp is sold only through the state’s own fund. There’s no private market for the coverage; you buy it from the state, period.
The four states
North Dakota, Ohio, Washington, and Wyoming. Each runs its own exclusive fund with its own rules and rate structure, separate from the NCCI/bureau system most states use. How state rates compare generally →
Why this matters for certificates
A subcontractor in one of these states won’t have a private-carrier COI — their coverage runs through the state fund. So when you collect proof, you’re verifying their state-fund account is active and in good standing for the work dates, not reading a standard private certificate. Don’t treat “no private COI” as “no coverage” for a sub in these states — but do confirm the state-fund status.
The employers-liability gap
Monopolistic state-fund coverage typically does not include employers’ liability (the part of a standard policy that covers lawsuits related to workplace injury). Contractors often fill this with separate “stop-gap” coverage added to a general liability policy. If you work across state lines into a monopolistic state, this is an easy gap to miss.
If you operate in one of these states
Confirm you’re covered through the state fund, add stop-gap employers’ liability if you need it, and verify any subs’ state-fund standing the same way you’d verify a private COI elsewhere. Check your subs’ coverage →
General information for contractors, not insurance advice. State-fund rules and stop-gap needs vary — confirm with your agent and the state fund.
Frequently asked questions
Which states are monopolistic for workers’ comp?
North Dakota, Ohio, Washington, and Wyoming. In these states you buy workers’ comp from the state fund, not a private insurer.
Can I buy private workers’ comp in a monopolistic state?
No. Coverage must come from the state fund. The employers-liability piece generally isn’t included, so contractors often add separate “stop-gap” coverage.
How does a monopolistic state affect subcontractor certificates?
A sub there shows coverage through the state fund rather than a private carrier, so verify their state-fund account is active and in good standing for the work dates.
See your own exposure — free
Two free tools, no signup: estimate your audit surprise, and check whether your subs’ COIs actually protect you.
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