When deciding which insurance carrier is right for your business and its Workers Compensation coverage, keep in mind that there is no federal requirement for the amount of workers compensation insurance an employer must carry. Instead, each state mandates the amount, and therefore, the marketplace for Workers Compensation insurance varies from state to state.

State Agencies
In some states, such as Ohio, North Dakota, Washington, West Virginia, and Wyoming, employers are required to purchase coverage through a state agency. These states provide only Workers Compensation coverage – they do not provide employer liability coverage, which the employer must purchase separately through a commercial insurance carrier.

Commercial Carriers
In other states, commercial insurance carriers compete for business in the Workers Compensation sector. Major insurance carriers in this competitive market include Liberty Mutual, CNA, Fireman’s Fund, The Hartford, and Travelers.

State Pools
State Workers Compensation insurance pools are available to those employers who are generally considered a high risk by commercial insurance carriers, either due to a high percentage of claims or a poor safety record. Premiums are generally higher than commercial carriers due to the higher degree of risk of a claim.

Forty-seven states allow businesses of a sufficient size to be self-insured, meaning that they may forego paying an insurance company and assume the risk for paying claims out-of-pocket.