What is a monopolistic state in terms of Workers’ Compensation insurance?

A monopolistic state in terms of Workers’ Compensation insurance is defined by its requirement that employers purchase coverage exclusively from a state-operated program. This means that there are no private insurance providers allowed to operate in the Workers’ Compensation market within that state. The monopolistic approach is designed to ensure uniformity in coverage and to manage the claims process more directly through state oversight.

The context includes understanding that some states, like North Dakota, Ohio, Washington, and Wyoming, have adopted this structure to maintain control over the insurance market and guarantee that all workers receive protection under the same set of regulations and benefits, which can streamline administration and reduce complications associated with multiple private insurers.