Workers' Comp Requirements by State

• Chesapeake Employers' Insurance Company (formerly the Injured Workers' Insurance Fund) is Maryland's largest workers' comp insurer and acts as the insurer of last resort for employers that can't find coverage elsewhere. Maryland uses NCCI classifications.
• Virginia uses NCCI classifications and rating. Employers that can't find coverage in the voluntary market can get it through the residual-market assigned risk plan administered by NCCI.
• Pennsylvania does not use NCCI class codes. The Pennsylvania Compensation Rating Bureau (PCRB) has its own classification system and rating rules, so a code you know from another state may not match. The State Workers' Insurance Fund (SWIF) is the insurer of last resort.
• New Jersey has its own rating bureau, the NJ Compensation Rating & Inspection Bureau (NJCRIB), with classifications that differ in places from NCCI's. NJCRIB also administers the New Jersey Workers Compensation Insurance Plan, the residual market for employers that can't get voluntary coverage.
• Florida uses NCCI classifications. The Florida Workers' Compensation Joint Underwriting Association (FWCJUA) is the market of last resort. The Division of Workers' Compensation enforces coverage, can issue stop-work orders against employers working without required coverage, and grants construction officer exemptions.
• West Virginia uses NCCI classifications. The private market opened in 2008 after the state fund was privatized, and the Offices of the Insurance Commissioner regulate coverage and enforce compliance.

Ohio, North Dakota, Washington and Wyoming require employers to buy workers' comp from a state fund rather than private insurers. Ohio employers can still buy stop-gap employer's liability privately.

Workers' comp premium is generally payroll ÷ 100 × the rate for each class code, adjusted by your experience modification factor (if you qualify), schedule credits or debits, and premium discounts, plus state assessments and fees. Rates are filed by insurers or set by rating bureaus such as NCCI, Pennsylvania's PCRB and New Jersey's NJCRIB. See workers' comp class codes and cost for details.

The premium you pay up front is a deposit based on estimated payroll. After the policy ends, the insurer audits actual payroll and subcontractor costs and bills or refunds the difference. Underestimating payroll just moves the cost to an audit bill later.

If you hire subcontractors who don't have their own workers' comp, most insurers will add what you paid them to your payroll at audit and charge you for their class codes. In many states the hiring contractor can be held responsible for an uninsured sub's injured workers. Collect a current certificate of insurance from every sub before they start, and keep it with your audit records.

Get the employee medical care first. Then report the injury to your insurer promptly; state rules set deadlines for employer reporting, and early reporting tends to keep claims smaller. Document what happened, keep in touch with the injured worker, and offer light-duty work when the doctor allows it, since getting people back to work is one of the most effective ways to control claim costs and your future experience mod.

Your FEIN, entity type and owners (and whether owners want to be included or excluded), payroll by job type for the last year and the coming year, subcontractor costs and whether subs carry their own coverage, any prior workers' comp loss runs, and a description of operations. With that, we can quote online through NEXT or Coterie or shop the class with several insurers.

Whether owners count toward the employee threshold, and whether they can be included or excluded, depends on the state and the type of entity (sole proprietor, partnership, LLC or corporation). Including an owner adds their payroll (often at a state-set minimum or maximum) but gives them benefits if they're hurt on the job. Excluding them lowers premium but leaves them uncovered, and some general contractors won't accept excluded owners on site. Check your state's rule on requirements by state.

A standard policy has Part One (statutory benefits) and Part Two (employer's liability, which covers lawsuits connected with employee injuries). Common limits are $100,000/$500,000/$100,000, and many contracts require $500,000 or $1,000,000. If employees travel or work in other states, ask about Part Three (other-states coverage) so a job across the state line doesn't leave you uninsured. Ohio and the other monopolistic states are handled differently; see Ohio stop-gap.

Working without required coverage can bring state penalties, stop-work orders (Florida's Division of Workers' Compensation issues them on job sites), and personal liability for an injured worker's medical bills and lost wages. It can also cost you contracts, because most general contractors and property managers won't let an uninsured vendor start work. Coverage can often be bound the same day.

• Maryland Workers' Compensation Commission
• Virginia Workers' Compensation Commission – employers
• PA Department of Labor & Industry – employer information
• NJ Division of Workers' Compensation
• Florida Division of Workers' Compensation – coverage requirements
• WV Offices of the Insurance Commissioner – employer coverage
• W. Va. Code §23-2-1, employers subject to the chapter
• Ohio Bureau of Workers' Compensation – employer coverage