If your business operates across state lines or employs workers in Ohio, you might wonder whether you need an Ohio Workers’ Compensation Policy. The rules for workers’ compensation differ from state to state, and Ohio has specific requirements for employers to ensure their employees are covered. In this blog post, we’ll break down what an Ohio Workers’ Compensation Policy entails, who needs it, and what exemptions exist.
Does My Business Need to Purchase an Ohio Workers’ Compensation Policy?
The question of whether you need to purchase an Ohio Workers’ Compensation Policy from the Ohio Bureau of Workers’ Compensation (BWC) depends on several factors. Here are the key scenarios:
YES, if…
- Your business has a location in Ohio or is based in Ohio.
- You employ an Ohio resident who works in Ohio, even if it’s just for one day a year. This includes remote employees working from their Ohio residence.
- A resident from another state is hired to work primarily in Ohio.
- Any employee works more than 90 consecutive days in Ohio.
- You have an employee from a foreign country who works in Ohio for any period. (The 90-Day Rule does not apply to foreign residents.)
NO, if…
- Your business is based in another state, and you do not have any employees working in Ohio.
- All employees work fewer than 90 consecutive days in Ohio.
Note: The 90-Day Rule is specific to 90 consecutive workdays within the state.
➡️ To learn more about how this policy might impact your business, explore our Commercial Insurance options on MBB Insurance.
Monopolistic Workers’ Compensation State: What Does It Mean for Ohio?
Ohio is one of four monopolistic workers’ compensation states in the U.S. (the others being North Dakota, Washington, and Wyoming). This means that private insurers are not allowed to sell workers’ compensation policies. Instead, employers are required to purchase their policies directly from the Ohio Bureau of Workers’ Compensation. So, if you need coverage for employees in Ohio, you must go directly to the state for your policy.
➡️ For additional information about the rules and requirements of monopolistic states, visit The Ohio BWC Website.
The Ohio Bureau of Workers’ Compensation put this flyer together with additional information and frequently asked questions.
Working with an Agent for Guidance
While you are required to purchase an Ohio Workers’ Compensation Policy directly from the Ohio BWC, insurance agents can still assist you by offering guidance through the process. However, agents cannot process the policy on your behalf. We at MBB Insurance are more than happy to help you understand your options and answer any questions you may have.
Conclusion
Whether you’re new to Ohio’s requirements or simply need to ensure you’re compliant, understanding when and how to obtain an Ohio Workers’ Compensation Policy is crucial for any business operating in the state. Ensuring proper coverage not only protects your employees but also helps your business stay compliant with state regulations.