Ohio Stop-Gap Employer's Liability

Ohio is a monopolistic state: employers buy workers' comp from the Ohio Bureau of Workers' Compensation, not private insurers. BWC policies don't include employer's liability for lawsuits beyond statutory benefits.

Employer's liability claims such as third-party-over actions and consequential injury suits. It's usually added as an endorsement to a general liability policy.

Ohio employers with one or more employees must carry coverage through the Ohio Bureau of Workers' Compensation unless the BWC approves them to self-insure. Private insurers can't sell Ohio workers' comp. Ohio is one of four monopolistic states, along with North Dakota, Washington and Wyoming. Premiums are set by the BWC and based on payroll and classification, and the BWC runs its own programs, discounts and safety services.

A standard workers' comp policy in a private-market state has two parts. Part One pays statutory benefits, and Part Two (employer's liability) defends and pays lawsuits against the employer related to employee injuries that fall outside the workers' comp statute. The BWC provides statutory benefits but not that Part Two protection. Stop-gap coverage fills the hole. Examples of what it can respond to include third-party-over actions (an injured worker sues a third party, who then sues you), claims by a spouse or family member for loss of consortium, and certain intentional-tort allegations, subject to the policy's terms and exclusions.

Stop-gap is usually added as an endorsement to your general liability policy, with limits often matching standard employer's liability ($1,000,000 / $1,000,000 / $1,000,000 is common). Contracts with general contractors and property owners in Ohio often require it on the certificate. Use the form on this page and a licensed agent will quote it.

If you have employees in Ohio and in private-market states, you'll typically have BWC coverage for Ohio and a private workers' comp policy for other states, and the private policy shouldn't list Ohio as a covered state. If you also operate in Maryland, Virginia, Pennsylvania, New Jersey, Florida or West Virginia, we can quote that side as well. Read the requirements by state first, and get certificates when contracts ask for them.

• Is my BWC coverage current and in good standing?
• What employer's liability limits do my contracts require?
• Does my GL insurer offer a stop-gap endorsement, or do I need a separate policy?
• Are intentional-tort claims covered or excluded?
• Do I have workers outside Ohio who need private coverage?

• "My GL covers employee injuries." It doesn't. General liability excludes injuries to your own employees. That's what BWC coverage and stop-gap are for.
• "My private workers' comp policy covers Ohio." Private insurers can't provide Ohio statutory coverage. Ohio employees need BWC coverage.
• "Stop-gap replaces BWC." It doesn't. It sits alongside BWC coverage and only covers employer's liability lawsuits.

General contractors and property owners usually ask for two things: proof of BWC coverage (the BWC issues a certificate of coverage) and a certificate of insurance showing your general liability with the stop-gap endorsement and its limits. Send us the contract's insurance section and we'll tell you whether the quote matches.

Contractors and trades working for general contractors whose subcontract agreements require employer's liability limits. Manufacturers and distributors whose customers or landlords require it. Employers with hazardous operations where a third-party-over claim is realistic, such as roofing, electrical and trucking. And any business that also has employees in private-market states, which needs to coordinate the two programs.

Stop-gap doesn't pay the statutory benefits (medical, wage loss) that BWC pays, and it doesn't cover injuries to non-employees, which fall under general liability. Policies also commonly exclude or limit punitive damages, deliberate-intent claims (Ohio's statute on employer intentional torts sets a demanding standard, and insurers word coverage for it carefully), and claims covered by another state's workers' comp law. Read the endorsement's exclusions and compare them with what your contracts require.

Fill in the form on this page with your business name, what the business does, your approximate payroll and number of employees, and how to reach you. A licensed Platinum Insurance agent will check whether your current general liability insurer offers a stop-gap endorsement, compare it with standalone options, and match the limits to your contracts. We'll also tell you if anything in your contracts calls for coverage beyond stop-gap, such as an umbrella that lists employer's liability as underlying coverage. You keep paying the BWC directly for your Ohio workers' comp; nothing about that changes.

• Ohio Bureau of Workers' Compensation – employer coverage