COI Requirements by State

Workers' compensation thresholds vary dramatically by state — from Nebraska and New Hampshire (any employer) to Mississippi and Arkansas (5+ or 3+ employees). A contractor who would be required to carry WC in California may be legally exempt in Mississippi. This creates real compliance gaps that property managers must navigate.

Four states — North Dakota, Ohio, Washington, and Wyoming — operate monopolistic workers' compensation systems where all WC coverage must be purchased through a state fund. Private WC insurance carriers are not permitted in these states, so a COI listing a private WC carrier for work in these states is a red flag.

Texas is uniquely the only state where workers' compensation is entirely voluntary for private employers. Non-subscriber contractors in Texas can legally operate without WC, but they lose the exclusive remedy defense and face unlimited tort liability. Property managers should always ask Texas vendors about their WC status.

Some states have laws that dramatically affect COI requirements — New York's Scaffold Law (absolute liability for falls), California's Labor Code § 2782 (anti-indemnity), and Florida's strict WC enforcement for construction employers all shape what a compliant COI must contain in those states.