Can my broker place a workers’ compensation policy for me that covers all 50 states?

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Can my broker place a workers’ compensation policy for me that covers all 50 states?

  • broker, insurance, liability, workers' compensation


Jennifer Slater, Sr. Account Executive, Inward Referral Manager, Aon US reviews the unique challenges of placing US Workers’ Compensation in the state regulated insurance system

Workers’ Compensation

  1. True or False
    “When entering into the US market, my US broker can place Workers’ Compensation coverage for my business in all 50 states.”

    • FALSE
      • There are jurisdictions in the US where an employer must obtain workers compensation insurance from a compulsory state fund or qualify as a self-insurer (as is allowed in two of the jurisdictions). Such insurance is not subject to any of the procedures or programs of the National Council on Compensation Insurance (NCCI). Instead, each jurisdiction has its own rules and regulations that govern the placement and administration of workers compensation insurance. The following states/jurisdictions are monopolistic fund states: North Dakota, Ohio, Washington, Wyoming, Puerto Rico, and the U.S. Virgin Islands.
  2. True or False
    “A Workers’ Compensation policy placed in a monopolistic state fund jurisdiction is the same as a policy placed in any other state.”

    • FALSE
      • Workers’ Compensation coverage placed in a monopolistic state fund only provides coverage

A: Workers’ Compensation (providing coverage for medical expenses and lost wages).

  • Monopolistic state fund Workers’ Compensation policies do not include coverage

B: Employers Liability

  • If you have exposures in monopolistic state fund jurisdictions, you must also include “Stop-Gap” Employers Liability for those jurisdictions in your “All Other States” Workers’ Compensation program (or General Liability program if you only have operations in monopolistic states).