Workers comp coverage required in Ohio
1 or more employees (private employers must obtain coverage from Ohio BWC; no private workers compensation carriers permitted in Ohio) Verified 2026-05-09.
Who must carry workers comp in Ohio?
Ohio workers compensation coverage is required 1 or more employees (private employers must obtain coverage from Ohio BWC; no private workers compensation carriers permitted in Ohio)
The threshold language matters: states write the rule slightly differently. Some count any worker, some count only W-2 employees, some count owners separately, some have industry-specific exemptions (agriculture, domestic service, casual labor). For a Ohio employer with a non-trivial workforce, the safest default is: assume coverage is required and confirm with the state department of insurance or a local agent.
How the threshold interacts with 1099s and subs
Workers are generally considered employees unless they meet specific criteria for independent contractor status, which is determined by a multi-factor test focusing on control and independence. A principal contractor can be held liable for the workers' compensation coverage of their subcontractors if the subcontractor does not have coverage.
Penalty for going without
Employers failing to secure coverage face fines, stop-work orders, and potential criminal charges. They are also liable for all medical costs and lost wages for injured employees. The financial penalty is usually a fraction of the human cost: an injured employee at an uncovered employer can sue directly under tort law instead of being limited to the workers comp benefit, exposing the owner to lost-wage damages, pain and suffering, and punitive damages without the corporate veil.
Related reading
FAQs
Who has to carry workers comp in Ohio?
1 or more employees (private employers must obtain coverage from Ohio BWC; no private workers compensation carriers permitted in Ohio)
When does the requirement kick in for a new Ohio employer?
The clock starts on the first day the first qualifying employee is on the books. Ohio does not have a grace period for new employers, so a policy needs to be bound on or before the first hire date. Some agents can issue same-day binders for low-risk class codes.
What is the penalty for not having workers comp in Ohio?
Employers failing to secure coverage face fines, stop-work orders, and potential criminal charges. They are also liable for all medical costs and lost wages for injured employees.
Do 1099 contractors trigger the coverage requirement in Ohio?
Workers are generally considered employees unless they meet specific criteria for independent contractor status, which is determined by a multi-factor test focusing on control and independence.
Are subcontractors counted toward the threshold in Ohio?
A principal contractor can be held liable for the workers' compensation coverage of their subcontractors if the subcontractor does not have coverage.
What happens if I am audited and found non-compliant in Ohio?
Ohio typically issues a stop-work order, assesses back premium for the period of non-coverage, and adds penalties on top. Specifically: Employers failing to secure coverage face fines, stop-work orders, and potential criminal charges. They are also liable for all medical costs and lost wages for injured employees. Severe or repeat violations can lead to criminal charges and personal liability for the business owner, separate from the corporate veil.