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State Fund for Workers’ Comp

Updated 11:38 AM EST, Tue February 2, 2021

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What Is a State Fund for Workers’ Compensation Insurance?

A state fund for workers’ compensation uses government funding to provide coverage for employers. States provide this type of workers’ compensation insurance through either a:
 
  1. Monopolistic state fund: Certain areas require employers to buy insurance through the state fund. Some limitations to this state government funding include not being able to shop around for the best quote and needing separate insurance for out-of-state employees.
  2. Competitive state fund: If your state has a competitive state fund, this allows you to choose workers’ comp coverage from your state or other private carriers. You can then choose coverage that fits your business’ needs better than monopolistic state programs.
If you’re in a competitive state, learn more about how much workers’ comp you’ll need by getting a quote from us today. We can help you get the right insurance for your business, while saving money.
 

Types of State Workers’ Compensation Funds

Before you get workers’ compensation coverage, you’ll want to check with your state and see if they have a required insurance fund. For instance, if you’re a California business, you’ll be able to choose either the state fund or private insurers because the state is competitive and not monopolistic.
 

Monopolistic State Fund for Workers’ Compensation

A monopolistic workers’ compensation insurance fund requires employers to buy workers’ compensation through a state insurance fund. States with monopolistic insurance requirements are:1
 
  • Ohio
  • Wyoming
  • Washington
  • North Dakota
Keep in mind that business owners in monopolistic states may not be able to:
 
  • Shop around for the best quote: So you’ll have to pay the rate that the state sets.
  • Provide coverage for out-of-state employees: You’ll likely have to find separate insurance for them from the state they work in.
  • Get employer liability coverage: This policy is essential for covering lawsuits and other workers’ compensation case costs that result from injured workers. It’ll help pay your legal expenses that result.
It’s also important to note that monopolistic programs are sometimes out of alignment with the National Workers’ Comp Class Codes (NCCI).
 

Competitive State Fund for Workers’ Compensation

The second way state programs offer workers’ comp is through a competitive state insurance fund. This allows business owners to choose workers’ compensation insurance from state agencies or a private carrier. This flexibility means you can choose coverage that fits your needs better than monopolistic state programs. States with competitive insurance funds are:2
 

Learn More about Workers’ Compensation Insurance Policies

Having the right workers’ compensation policy is essential for protecting your employees and your business. If your company isn’t in a monopolistic state, then there are a variety of options you can choose from.
 
We’ve been helping our customers find the right coverage for over 200 years. We can help you get the right workers’ comp policy at the right price. To learn more, get a quote today.
 
 
 

Get a Workers' Comp Quote
The Hartford shall not be liable for any damages in connection with the use of any information provided on this page. Please consult with your insurance agent/broker or insurance company to determine specific coverage needs as this information is intended to be educational in nature.
 
The information contained on this page should not be construed as specific legal, HR, financial, or insurance advice and is not a guarantee of coverage. In the event of a loss or claim, coverage determinations will be subject to the policy language, and any potential claim payment will be determined following a claim investigation.
 
Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc. In TX, this insurance is written by Sentinel Insurance Company, Ltd., Hartford Casualty Insurance Company, Hartford Lloyd’s Insurance Company, Property and Casualty Insurance Company of Hartford, Hartford Underwriters Insurance Company, Twin City Fire Insurance Company, Hartford Accident and Indemnity Company and Hartford Fire Insurance Company. In Arizona, New Hampshire, Washington and California, the insurance is underwritten by Hartford Accident and Indemnity Company, Hartford Casualty Insurance Company, Hartford Fire Insurance Company, Hartford Insurance Company of Illinois, Hartford Insurance Company of the Midwest, Hartford Lloyd’s Insurance Company, Hartford Underwriters Insurance Company, Maxum Casualty Insurance Company, Maxum Indemnity Company, Navigators Insurance Company, Navigators Specialty Insurance Company, Pacific Insurance Company, Property and Casualty Insurance Company of Hartford, Sentinel Insurance Company, Ltd., Trumbull Insurance Company and Twin City Fire Insurance Company. The Hartford® is The Hartford Financial Services Group, Inc. and its subsidiaries, including Hartford Fire Insurance Company.
 
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