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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49 states
Require workers comp for employees
4 states
Use exclusive state WC funds only (ND, OH, WA, WY)
1 state
Makes workers comp optional (Texas)
$300K–$1M
Typical state GL minimum requirements

Browse by Industry + State

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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
View California requirements →

Florida Business Insurance

FL
  • • Construction requires WC from 1 employee
  • • DBPR license required for contractors
View Florida requirements →

Illinois Business Insurance

IL
  • • Workers comp mandatory
  • • IDFPR licensing for professional services
View Illinois requirements →

Montana Business Insurance

MT
  • • Workers comp required for all employers
  • • State Fund is the exclusive WC provider in Montana
View Montana requirements →

New York Business Insurance

NY
  • • Workers comp mandatory
  • • NY Labor Law 240/241 (scaffold law) creates significant GL exposure
View New York requirements →

North Dakota Business Insurance

ND
  • • Workers comp provided exclusively by ND Workforce Safety & Insurance
  • • Cannot opt out of state fund
View North Dakota requirements →

Ohio Business Insurance

OH
  • • Workers comp provided by BWC (state fund)
  • • Contractors need OH contractor license
View Ohio requirements →

Texas Business Insurance

TX
  • • Workers comp NOT mandatory (non-subscriber option)
  • • TDLR licensing for some trades
View Texas requirements →

Washington Business Insurance

WA
  • • Workers comp through L&I (state fund)
  • • Contractor registration with WSLCB
View Washington requirements →

Wyoming Business Insurance

WY
  • • Workers comp through State Fund exclusively
  • • Cannot opt out of state WC fund
View Wyoming requirements →

All 50 States + DC

Northeast

ConnecticutCT
✅ WC Required
DelawareDE
✅ WC Required
MaineME
✅ WC Required
MarylandMD
✅ WC Required
MassachusettsMA
✅ WC Required
New HampshireNH
✅ WC Required
New JerseyNJ
✅ WC Required
New YorkNY
✅ WC Required
PennsylvaniaPA
✅ WC Required
Rhode IslandRI
✅ WC Required
VermontVT
✅ WC Required
District of ColumbiaDC
✅ WC Required

Southeast

AlabamaAL
✅ WC Required
ArkansasAR
✅ WC Required
FloridaFL
✅ WC Required
GeorgiaGA
✅ WC Required
KentuckyKY
✅ WC Required
LouisianaLA
✅ WC Required
MississippiMS
✅ WC Required
North CarolinaNC
✅ WC Required
South CarolinaSC
✅ WC Required
TennesseeTN
✅ WC Required
VirginiaVA
✅ WC Required
West VirginiaWV
✅ WC Required

Midwest

IllinoisIL
✅ WC Required
IndianaIN
✅ WC Required
IowaIA
✅ WC Required
KansasKS
✅ WC Required
MichiganMI
✅ WC Required
MinnesotaMN
✅ WC Required
MissouriMO
✅ WC Required
NebraskaNE
✅ WC Required
North DakotaND
✅ WC Required
OhioOH
✅ WC Required
South DakotaSD
✅ WC Required
WisconsinWI
✅ WC Required

Southwest

ArizonaAZ
✅ WC Required
New MexicoNM
✅ WC Required
OklahomaOK
✅ WC Required
TexasTX
⚠️ WC Optional

Mountain West

ColoradoCO
✅ WC Required
IdahoID
✅ WC Required
MontanaMT
✅ WC Required
NevadaNV
✅ WC Required
UtahUT
✅ WC Required
WyomingWY
✅ WC Required

Pacific

AlaskaAK
✅ WC Required
CaliforniaCA
✅ WC Required
HawaiiHI
✅ WC Required
OregonOR
✅ WC Required
WashingtonWA
✅ WC Required

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.

North DakotaOhioWashingtonWyoming
🤠

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.

Texas
✅

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.

StateWC RequiredThresholdGL Minimum
AlabamaRequired1+ employees$300,000
AlaskaRequired1+ employees$300,000
ArizonaRequired1+ employees$300,000
ArkansasRequired3+ employees$300,000
CaliforniaRequired1+ employees$1,000,000
ColoradoRequired1+ employees$500,000
ConnecticutRequired1+ employees$500,000
DelawareRequired1+ employees$300,000
FloridaRequired4+ employees (construction: 1+)$300,000
GeorgiaRequired3+ employees$300,000
HawaiiRequired1+ employees$300,000
IdahoRequired1+ employees$300,000
IllinoisRequired1+ employees$500,000
IndianaRequired1+ employees$300,000
IowaRequired1+ employees$300,000
KansasRequired1+ employees$300,000
KentuckyRequired1+ employees$300,000
LouisianaRequired1+ employees$500,000
MaineRequired1+ employees$300,000
MarylandRequired1+ employees$500,000
MassachusettsRequired1+ employees$500,000
MichiganRequired1+ employees$300,000
MinnesotaRequired1+ employees$300,000
MississippiRequired5+ employees$300,000
MissouriRequired5+ employees$300,000
MontanaRequired1+ employees$300,000
NebraskaRequired1+ employees$300,000
NevadaRequired1+ employees$500,000
New HampshireRequired1+ employees$300,000
New JerseyRequired1+ employees$500,000
New MexicoRequired3+ employees$300,000
New YorkRequired1+ employees$1,000,000
North CarolinaRequired3+ employees$300,000
North DakotaRequired1+ employees$300,000
OhioRequired1+ employees$300,000
OklahomaRequired1+ employees$300,000
OregonRequired1+ employees$500,000
PennsylvaniaRequired1+ employees$500,000
Rhode IslandRequired1+ employees$300,000
South CarolinaRequired4+ employees$300,000
South DakotaRequired1+ employees$300,000
TennesseeRequired5+ employees (construction: 1+)$300,000
TexasOptionalOptional (most other states require)$300,000
UtahRequired1+ employees$300,000
VermontRequired1+ employees$300,000
VirginiaRequired3+ employees$300,000
WashingtonRequired1+ employees$500,000
West VirginiaRequired1+ employees$300,000
WisconsinRequired3+ employees$300,000
WyomingRequired1+ employees$300,000
District of ColumbiaRequired1+ employees$1,000,000

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