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Workers' Comp in Monopolistic States (ND, OH, WA, WY): What a Sub's COI Should Show

By SubCover HQ · Updated Nov 2, 2026 · 4 min read

In most states, a subcontractor buys workers' compensation from a private insurance company, and their agent lists it in the workers' comp row of the ACORD 25 alongside general liability and auto. In four states it works differently. North Dakota, Ohio, Washington, and Wyoming are called monopolistic states: most employers there must buy workers' comp from the state's own fund, and private carriers generally can't sell it.

If you hire subs or vendors who work in those states, their certificates will often look "incomplete" when they're actually fine, and sometimes look fine when there's a real gap.

Who runs workers' comp in each state

• North Dakota: Workforce Safety & Insurance (WSI).
• Ohio: the Ohio Bureau of Workers' Compensation (BWC). Some large employers are approved to self-insure.
• Washington: the Department of Labor & Industries (L&I). Some large employers are approved to self-insure.
• Wyoming: the Department of Workforce Services' workers' compensation program.

What you'll see on the ACORD 25

Because the sub's private agent doesn't write their state-fund coverage, the workers' comp row on the ACORD 25 is often blank, marked N/A, or has a note in the description box pointing to the state fund. That isn't automatically a deficiency. The proof of coverage usually comes separately:

• A certificate or letter of coverage issued by the state fund itself, showing the employer's account and that it's active.
• Or a confirmation from the state fund's online lookup or customer service, which most of these agencies make available. Check the agency's site for the current way to verify an employer.

Put the state-fund proof in the sub's file next to the ACORD 25 and track its date like any other policy.

The gap people miss: employers' liability

A standard private workers' comp policy has two parts: workers' compensation (Part One) and employers' liability (Part Two), which covers lawsuits by injured employees and related claims. State funds in monopolistic states generally provide the first part but not the second.

Employers in those states usually buy employers' liability separately, often called stop gap coverage, most commonly as an endorsement on their general liability policy. If your subcontract requires employers' liability limits (for example $1M/$1M/$1M), ask the agent to show stop gap coverage on the certificate, typically in the description box or under the GL policy, and confirm the limits.

Out-of-state subs working in a monopolistic state

This is where real gaps happen. A sub based in, say, Idaho or Pennsylvania with a private workers' comp policy brings a crew to a job in Washington or Ohio. Private policies generally can't provide the state's required coverage for work in a monopolistic state, so the sub may need to open an account with that state's fund for the work there.

• Ask any out-of-state sub how they're covering workers in the monopolistic state.
• Ask for the state-fund proof for that state, not just their home-state certificate.
• Confirm stop gap employers' liability applies to work in that state too.

The reverse can matter as well: a sub based in a monopolistic state working across the border may need private coverage for the other state. The agent or the state agency can confirm.

A quick checklist for monopolistic-state subs

1. ACORD 25 for general liability, auto, and umbrella, as usual.
2. State-fund certificate or verified active account for workers' comp in the state where the work happens.
3. Stop gap employers' liability shown on the certificate if your contract requires employers' liability.
4. Waiver of subrogation: ask whether the state fund allows it and how. Rules differ from private policies, so check before making it a hard requirement.
5. Both dates tracked: the private policies and the state-fund coverage.

Make it part of the normal review

The trap is treating a blank workers' comp row as either "missing" or "fine" without checking. SubCover HQ reads every certificate against your requirements, follows up with the agent for the right proof, and tracks each policy's dates, for $99/month. For more on exemptions, see workers' comp exemptions for subcontractors.

Frequently asked questions

Which states are monopolistic for workers' comp?

North Dakota, Ohio, Washington, and Wyoming. In those states most employers must buy workers' comp from the state fund rather than a private insurer.

Is a blank workers' comp row on the ACORD 25 a problem for a sub in Ohio or Washington?

Not automatically. The private agent often can't show state-fund coverage, so ask for the state fund's certificate of coverage or verify the employer's account with the agency.

What is stop gap coverage?

Employers' liability coverage bought separately in monopolistic states, often as an endorsement on the general liability policy, because the state fund generally doesn't include it.

Does my out-of-state sub's private workers' comp policy cover work in Washington or Ohio?

Generally not. Private policies usually can't provide the required coverage in a monopolistic state, so the sub may need a state-fund account for that work. Confirm with the agent or agency.

This guide is general information, not insurance or legal advice. State rules change; check with the state agency, your insurance professional, and your attorney.