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Workers’ Compensation 101
Guidebook

Workers' compensation insurance hero

Question 8

How do you purchase coverage?

Employers can purchase coverage by utilizing the services of a licensed agent/broker to place the insurance with a private carrier or through private insurance companies directly.

WC Q8

Exceptions:

  1. New employers and those businesses considered “high risk” where coverage is not available through a private insurance company can purchase coverage from:

    • Competitive State Funds – run by a state to provide coverage
    • Assigned Risk Plans – a pool of private carriers required to insure certain amounts of high-risk clients
  2. In “Monopolistic States” – Ohio, North Dakota, Wyoming and Washington – coverage is only available from a state-operated plan

  3. Self Insurance – Typically reserved for larger businesses that have the financial capacity to directly pay workers’ compensation claims. There are significant collateral requirements imposed by states for companies to qualify as a self-insurer.


Next Question: Is there an audit process for workers' compensation policies?

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