22 states with no state fund (private-market workers compensation only)
In approximately 22 US states, workers compensation coverage is purchased exclusively from private-market carriers. There is no state-fund carrier serving as a competitive option or as a market of last resort. Coverage placement runs entirely through the private market, with the state’s assigned-risk pool (administered by NCCI or the state bureau) serving as the residual market for hard-to-place accounts.
This page lists the private-market-only states, contrasts them with state-fund states and monopolistic states, and explains what the absence of a state fund means in practice.
The three structural categories
Every US workers compensation system falls into one of three categories:
1. Private-market-only states (approximately 22 states). No state fund. All coverage is private. Includes most of the Southeast, parts of the Midwest, and several smaller states.
2. Competitive state-fund states (approximately 25 states). A state-fund carrier operates alongside private-market carriers. Employers can choose either. The state fund is typically a quasi-public entity (public benefit corporation, political subdivision, or nonprofit insurance company created by statute).
3. Monopolistic state-fund states (4 states): Ohio, North Dakota, Washington, Wyoming. Private employers cannot buy from a private carrier; the state agency is the only legal provider [state-facts/OH.json, state-facts/ND.json, state-facts/WA.json, state-facts/WY.json].
The 22 (approximately) private-market-only states
The list of states without a state fund (competitive or otherwise). State-fund presence varies and statutes change, so verify current status with the state DOI before relying on this list:
- Alabama
- Alaska
- Arkansas
- Connecticut
- Delaware
- District of Columbia (DC)
- Florida
- Georgia
- Illinois
- Indiana
- Iowa
- Kansas
- Massachusetts
- Mississippi
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- North Carolina
- South Carolina
- Tennessee
- Vermont
- Virginia
- Wisconsin
Some sources count slightly differently because the line between “no state fund” and “small state-fund presence” can be ambiguous. A few states (Maine, Rhode Island) have small specialty pools or limited state-affiliated entities that do not function as full state funds. The list above captures the cleanest cases of private-market-only.
What the absence of a state fund means
Three practical implications for employers in these states.
1. No carrier of last resort outside the assigned-risk pool. When private-market carriers decline to quote a hard-to-place account (high-loss-history account, high-hazard class, very small premium volume), the only fallback is the state’s assigned-risk pool. The pool is administered by NCCI in NCCI states (Florida, Tennessee, Virginia, etc.) and by the state bureau in independent-bureau states (Massachusetts, New Jersey, North Carolina, Wisconsin).
The assigned-risk pool charges the bureau-filed assigned-risk rate, which is typically 50% to 100% above the standard-market rate. Pool placement also has fewer service amenities (limited carrier choice, restricted PAYG availability, less flexible underwriting).
2. Private-market competition is the cost-control mechanism. In private-market-only states, the discipline that keeps premiums reasonable is competition among private carriers. States with strong carrier appetite (most of the list above) produce sharp pricing for desirable accounts. States with weak carrier appetite produce harder pricing.
3. Small-business accounts may have fewer options. State funds in competitive-fund states often serve as the small-business specialist. Pinnacol writes about 55% of the Colorado WC market [carriers/carriers.json]; State Fund CA writes over 20% of California. In private-market-only states, small-business accounts rely on AmTrust, Hartford, Employers Holdings, and other small-business-focused private carriers. These carriers do reach all 22 states, but the volume and pricing dynamics differ.
Competitive state-fund states for contrast
Several states maintain competitive state funds that operate alongside private-market carriers:
- California: State Compensation Insurance Fund. Public benefit corporation. Over 20% CA market share [carriers/carriers.json].
- Colorado: Pinnacol Assurance. Political subdivision since 1915. Approximately 55% CO market share.
- New York: NYSIF (New York State Insurance Fund). Quasi-public.
- Texas: Texas Mutual Insurance Company. Nonprofit insurance company created by statute. Largest single carrier in TX market [state-facts/TX.json].
- Idaho: Idaho State Insurance Fund.
- Maryland: Chesapeake Employers’ Insurance Company (formerly IWIF). Re-organized as a private nonprofit insurance company.
- Maine: Maine Employers Mutual Insurance Company (MEMIC). Mutual insurer with state legislative origins.
- Several others: Arizona, Hawaii, Kentucky, Louisiana, Minnesota, Missouri, Montana, New Mexico, Oklahoma, Oregon, Pennsylvania, South Dakota, Utah, West Virginia, all have some form of state-fund or quasi-public WC carrier.
The state-fund’s role varies dramatically. California’s State Fund is a major market-share holder competing actively with private carriers. Idaho’s State Fund is a smaller participant. Each state’s structure is unique.
The four monopolistic states
For comparison, the four monopolistic states have no private-market alternative for workers compensation:
- Ohio (BWC). Ohio Bureau of Workers’ Compensation has been the only legal WC provider for private Ohio employers since 1912 [state-facts/OH.json]. Maximum weekly benefit is $1,320 (2024); coverage is mandatory for employers with one or more employees.
- North Dakota (WSI). North Dakota Workforce Safety & Insurance is the only WC provider [state-facts/ND.json]. Maximum weekly benefit is $1,487.50 (2024).
- Washington (L&I). Washington State Department of Labor & Industries is the WC provider [state-facts/WA.json]. Maximum weekly benefit is $1,412.10 (2024); wage-replacement rate is 60%.
- Wyoming (DWS). Wyoming Department of Workforce Services is the WC provider [state-facts/WY.json]. Maximum weekly benefit is $1,190 (2024).
In monopolistic states, the question “which carrier should I use” does not arise. The state agency is the only option.
How private-market-only states differ from state-fund states
For most employers, the experience of buying workers compensation in a private-market-only state versus a competitive-fund state is similar:
Identical:
- Class codes (NCCI or independent bureau)
- Rate-filing process (bureau files, state DOI approves)
- Carrier underwriting and placement (through brokers and direct channels)
- Audit and claim-management process
Different:
- Available carriers (state fund is in the mix in some states, not in others)
- Carrier of last resort behavior (state fund versus assigned-risk pool)
- Small-business pricing dynamics (more variable in private-market-only states)
- Specific underwriting appetites (state funds often write classes private carriers decline)
When the state-fund presence matters
The state-fund question is relevant in two specific scenarios:
1. Hard-to-place accounts. When private carriers decline to quote (because of loss history, class, or size), employers in state-fund states have a quasi-public option that is often more flexible than the assigned-risk pool. Employers in private-market-only states go directly to the assigned-risk pool, which is more expensive and less flexible.
2. Specific industries with state-fund expertise. Some state funds develop deep expertise in industries dominant in the state. Pinnacol Assurance’s Colorado market share concentrates in CO-specific industries (mining, agriculture, construction). State Fund CA writes a substantial share of the California construction market. In states without a state fund, this industry-specific quasi-public expertise does not exist.
How to verify state-fund status
State-fund presence and structure can change over statutory cycles. Verify current status by:
- Checking the state DOI website for licensed-carrier rosters
- Reviewing the state-facts file at
/state/[code]/for the state-fund-name and state-fund-url fields - Asking your broker about the assigned-risk-pool administrator and any quasi-public alternatives in the state
The state-facts files in our dataset include the rating-authority identity and the state-fund-name (where applicable). For the 4 monopolistic states, the state-fund-name is the only legal provider. For competitive-fund states, the state-fund-name is one of several options. For private-market-only states, the state-fund-name field is blank or references the assigned-risk-pool administrator.
Related resources
- State overview: rules by state
- Best workers comp carriers
- Cheapest states for workers comp
- How to find your NCCI class code
This is general information, not legal or insurance advice. Workers compensation market structures vary by state and change over time. Verify current state-fund status with the relevant state DOI before relying on it for placement decisions. Consult a licensed broker for your specific situation.