Workers' Compensation in Monopolistic States (OH, ND, WA, WY)

Summary

Monopolistic States are those that require businesses to purchase workers' compensation insurance from a state-run fund. These states prohibit insurers from selling workers' compensation insurance.

The current monopolistic states are Ohio, North Dakota, Washington, and Wyoming.

Managed Repair Program Requirements

All managed repair programs that require workers' compensation insurance with specific requirements for Employers' Liability do not accept the state-run fund workers' compensation.

State run finds do not offer Employers' Liability as part of their workers' compensation coverage.

Employers' Liability is coverage that protects the employer from lawsuits whereas Workers' Compensation focuses on providing benefits for injured employees. Put another way, Employers' Liability kicks in where Workers' Compensation stops, and is therefore often a requirement for restoration companies working with Managed Repair Networks.

What does this mean for you?

Organizations that are participating in managed repair networks will need to acquire Stop Gap coverage for Employers' Liability in the amount required by that managed repair program's requirements. Stop Gap coverage is often acquired through an existing insurance agent or broker for the organizations other lines of insurance, such as their Commercial General Liability provider.

In these cases, Sublynk will enforce Stop Gap coverage on behalf of the Managed Repair Network, ensuring an active policy for Employers' Liability is in place, for the amount required by that network.