Business Insurance by State
Every state has different workers comp mandates, contractor licensing requirements, and minimum liability limits. Find your state's specific rules below — then get a quote in minutes with ERGO NEXT.
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States with Notable Insurance Requirements
These states have unusually strict, unique, or business-critical insurance rules every small business owner should know before operating there.
California Business Insurance
CA- • Workers comp required for all employers (strictest enforcement)
- • CSLB requires $25K contractor bond + liability
Florida Business Insurance
FL- • Construction requires WC from 1 employee
- • DBPR license required for contractors
Illinois Business Insurance
IL- • Workers comp mandatory
- • IDFPR licensing for professional services
Montana Business Insurance
MT- • Workers comp required for all employers
- • State Fund is the exclusive WC provider in Montana
New York Business Insurance
NY- • Workers comp mandatory
- • NY Labor Law 240/241 (scaffold law) creates significant GL exposure
North Dakota Business Insurance
ND- • Workers comp provided exclusively by ND Workforce Safety & Insurance
- • Cannot opt out of state fund
Ohio Business Insurance
OH- • Workers comp provided by BWC (state fund)
- • Contractors need OH contractor license
Texas Business Insurance
TX- • Workers comp NOT mandatory (non-subscriber option)
- • TDLR licensing for some trades
Washington Business Insurance
WA- • Workers comp through L&I (state fund)
- • Contractor registration with WSLCB
Wyoming Business Insurance
WY- • Workers comp through State Fund exclusively
- • Cannot opt out of state WC fund
All 50 States + DC
Northeast
Southeast
Midwest
Southwest
Mountain West
Workers Comp by State: What You Need to Know
4 Monopolistic States
North Dakota, Ohio, Washington, and Wyoming require you to purchase workers comp exclusively from the state fund. Private insurers cannot sell WC policies in these states.
1 Voluntary State
Texas is the only state that does not require workers comp insurance. Texas businesses can opt out, but non-subscribers lose key legal protections and face unlimited personal injury suits.
46 States + DC
All other states require workers comp once you meet the employee threshold — typically 1, 3, or 5 employees depending on the state and industry.
| State | WC Required | Threshold | GL Minimum |
|---|---|---|---|
| Alabama | Required | 1+ employees | $300,000 |
| Alaska | Required | 1+ employees | $300,000 |
| Arizona | Required | 1+ employees | $300,000 |
| Arkansas | Required | 3+ employees | $300,000 |
| California | Required | 1+ employees | $1,000,000 |
| Colorado | Required | 1+ employees | $500,000 |
| Connecticut | Required | 1+ employees | $500,000 |
| Delaware | Required | 1+ employees | $300,000 |
| Florida | Required | 4+ employees (construction: 1+) | $300,000 |
| Georgia | Required | 3+ employees | $300,000 |
| Hawaii | Required | 1+ employees | $300,000 |
| Idaho | Required | 1+ employees | $300,000 |
| Illinois | Required | 1+ employees | $500,000 |
| Indiana | Required | 1+ employees | $300,000 |
| Iowa | Required | 1+ employees | $300,000 |
| Kansas | Required | 1+ employees | $300,000 |
| Kentucky | Required | 1+ employees | $300,000 |
| Louisiana | Required | 1+ employees | $500,000 |
| Maine | Required | 1+ employees | $300,000 |
| Maryland | Required | 1+ employees | $500,000 |
| Massachusetts | Required | 1+ employees | $500,000 |
| Michigan | Required | 1+ employees | $300,000 |
| Minnesota | Required | 1+ employees | $300,000 |
| Mississippi | Required | 5+ employees | $300,000 |
| Missouri | Required | 5+ employees | $300,000 |
| Montana | Required | 1+ employees | $300,000 |
| Nebraska | Required | 1+ employees | $300,000 |
| Nevada | Required | 1+ employees | $500,000 |
| New Hampshire | Required | 1+ employees | $300,000 |
| New Jersey | Required | 1+ employees | $500,000 |
| New Mexico | Required | 3+ employees | $300,000 |
| New York | Required | 1+ employees | $1,000,000 |
| North Carolina | Required | 3+ employees | $300,000 |
| North Dakota | Required | 1+ employees | $300,000 |
| Ohio | Required | 1+ employees | $300,000 |
| Oklahoma | Required | 1+ employees | $300,000 |
| Oregon | Required | 1+ employees | $500,000 |
| Pennsylvania | Required | 1+ employees | $500,000 |
| Rhode Island | Required | 1+ employees | $300,000 |
| South Carolina | Required | 4+ employees | $300,000 |
| South Dakota | Required | 1+ employees | $300,000 |
| Tennessee | Required | 5+ employees (construction: 1+) | $300,000 |
| Texas | Optional | Optional (most other states require) | $300,000 |
| Utah | Required | 1+ employees | $300,000 |
| Vermont | Required | 1+ employees | $300,000 |
| Virginia | Required | 3+ employees | $300,000 |
| Washington | Required | 1+ employees | $500,000 |
| West Virginia | Required | 1+ employees | $300,000 |
| Wisconsin | Required | 3+ employees | $300,000 |
| Wyoming | Required | 1+ employees | $300,000 |
| District of Columbia | Required | 1+ employees | $1,000,000 |
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By clicking, you agree to Insurance Pro Agencies' Terms of Use and Privacy Policy, and authorize Insurance Pro Agencies, Inc and its affiliated carrier partners to contact you using the information you provide during the quoting process. Consent is not a condition of obtaining a quote.