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State Fund for Workers’ Comp

Updated 02:44 PM EST, Mon June 3, 2019

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An Introduction to State Funded Workers’ Compensation

State funded workers’ compensation programs provide coverage for employers using government funding. There are two ways this type of workers’ comp insurance can be provided to a state’s employers and their employees.
 
The first way is through a monopolistic state insurance fund. This type of fund requires employers to buy workers’ compensation through a state insurance fund. States with monopolistic insurance requirements include:1
 
  • Ohio
  • Wyoming
  • Washington
  • North Dakota
There are certain limitations for workers’ compensation insurance from monopolistic state programs. As a business owner, in a monopolistic state you may not be able to:
 
  • Shop around for the best quote. This means you may be missing out on good deals.
  • Provide coverage for out of state employees. You’ll likely have to find separate insurance for them from the state they work in.
  • Acquire employer liability coverage. This coverage is essential for covering lawsuits and other workers’ compensation case costs that result from an injured worker. It can help cover 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). This can mean you’re paying more for coverage compared to others who employ workers of the same job type.
 
The second way state programs can be offered is through a competitive state insurance fund. This allows businesses to choose workers’ compensation insurance from the state or a private carrier. This can allow employers to choose coverage that fits their needs better than monopolistic state programs. States with competitive insurance include:2
 
  • Arizona
  • California
  • Colorado
  • Hawaii
  • Idaho
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Minnesota
  • Missouri
  • Montana
  • New Mexico
  • New York
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • Texas
  • Utah

Workers’ Compensation Statute of Limitations by State

The term “statute of limitations” refers to the amount of time you have to file a workers’ compensation claim. Essentially, this is the deadline for filing a claim. For instance, this deadline may be 30 days or a year.
 
If you file a lawsuit after the statute of limitations, it may not be considered in court. Keep in mind that different states have different workers’ compensation laws and deadlines.
 
As an employer, you need to know your state’s workers’ compensation statute of limitations. This is important because you need to file a claim with your insurance carrier as soon as an employee is injured. If you wait and miss your statute of limitations, your employee’s claim may be rejected.
 
If you don’t report a claim on time, you and your business can suffer financial consequences. If the claim is reported too late, the employee’s health may get worse. This keeps them out of work for longer which can have financial implications. Some states may even charge a fine for late claims.
 
Reporting workers’ compensation claims late can also damage your reputation with your employees. Depending on the situation, you may experience low morale from employees when you report a claim late. This can be especially relevant in industries like construction where employees are doing high risk activities for the company daily. Your employees want to know you have their back.
 
To see statute of limitations for monopolistic states, check out this outline from FindLaw.com:3
 
Ohio
 
  • Within two years from the date of an injury
  • Within two years after the disability began
  • Within six months after an illness was diagnosed for a work related disease claim
Wyoming
 
  • Within one year from the date of injury
  • Within one year after a diagnosis is first communicated to an employee
  • Within three years from the date of last exposure to the hazard
Washington
 
  • Within one year from the date of injury
 
North Dakota
 
  • Within one year from the date of injury; the date of an injury is the first date a reasonable person knew or should have known that it occurred
Now that you know monopolistic state’s deadlines, check out FindLaw.com’s outline for competitive states:4
 
Arizona
 
  • Within one one year of the date of injury
California
 
  • Within one year from the date of injury
Colorado
 
  • Within two years from the date of injury
Hawaii
 
  • Within two years after the date where the effects of the injury have manifested
  • Within five years after the date of the accident which caused the injury
Idaho
 
  • There is no time limit for the initial claim
  • Within one year from date of last payment if benefits have been paid for more than 4 years
Kentucky
 
  • Within two years of the date of injury, or the last voluntary payment of disability income benefits, whichever comes later
Louisiana
 
  • Within one year from the date of injury
  • Within one year from the date a disability develops
  • No later than two years from the date of an accident
Maine
 
  • Within two years from the date an employer is required to file a First Report (one or more days of lost time) or the date of injury if no First Report is required
Maryland
 
  • Within two years from the date of injury
  • Within 18 months from the date of death (for death benefits)
  • Within one year after the employee has reason to believe he or she has an occupational disease
Minnesota
 
  • Within three years of the date of injury if employer filed a First Report of Injury with the Minnesota Department of Labor and Industry
  • Otherwise, within six years of the date of injury
Missouri
 
  • Within two years of the date of injury
  • Within one year from the last date of payment, whichever is later
Montana
 
  • Within one year of the date of injury
  • Within two years if the claimant shows lack of knowledge of injury, latent injury or equitable estoppel
New Mexico
 
  • Within one year after employer's insurance provider has started (or failed) to pay you
New York
 
  • Within two years from the date of injury or last payment of compensation, whichever is later
Oklahoma
 
  • Within two years from the date of injury or death
  • Within two years from the date of payment of any compensation or wages in place of compensation
  • Within two years of authorized medical treatment and care
Oregon
 
  • Within two years from the date of injury
  • Within 180 days from the date of a claim denial
Pennsylvania
 
  • Within three years from the date of injury
  • If benefits terminated, claimant has three years to seek reinstatement; 300 weeks from the date of last exposure for occupational disease claims
Rhode Island
 
  • Within two years from the date of injury; in most cases the statute allows for flexibility, depending on the nature of the case
South Carolina
 
  • Within two years of the date of the accident
  • Or the date the employee discovered, or could have reasonably discovered the injury or illness
Texas
 
  • Within one year from the date of injury
  • Within one year from the date the employee knew, or should have known, about an occupational illness
Utah
 
  • Within one year from the date of injury

Learn More about Workers’ Compensation Insurance Policies

Having a business-appropriate workers’ compensation policy is essential for protecting your employees and your business. If your business is not located in a monopolistic state, then there are a variety of options you can choose from.
 
We’ve had our customer’s back for over 200 years. That’s why we want to offer the most comprehensive coverage possible. To do this, we offer workers’ compensation benefits that extend beyond other workers’ compensation policies. For example, our workers’ comp policies offer a preferred medical provider network, pay-as-you-go billing and more. To learn more, contact a representative. Get a quote today.
 
 
This article provides general information, and should not be construed as specific legal, HR, financial, insurance, tax or accounting advice. As with all matters of a legal or human resources nature, you should consult with your own legal counsel and human resources professionals. The Hartford shall not be liable for any direct, indirect, special, consequential, incidental, punitive or exemplary damages in connection with the use by you or anyone of the information provided herein.
 
 
 
 

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 CA by Sentinel Insurance Company, Ltd. (CA license # 8701) and its property and casualty insurance company affiliates, One Hartford Plaza, Hartford, CT 06155.
 
The Hartford® is The Hartford Financial Services Group, Inc. and its property and casualty subsidiaries, including issuing company, Hartford Fire Insurance Company. Its headquarters is in Hartford, CT.