Ohio Workers' Compensation Insurance

Your Guide to Workers' Comp Insurance in Ohio

Find the right workers compensation insurance for you.

Ohio Workers Compensation Insurance

In recent years, Ohio has paid out $149.26 million in workers' comp claims. Work-related injuries happen every day, from trips and falls to life-altering injuries, but having the right workers' comp coverage can help protect your business. For help navigating workers comp insurance coverage, find a local independent agent.

Workers' Compensation Coverages/Non-Coverages in Ohio

Employees need help paying for medical bills when they get injured on the job. Workers’ compensation insurance is designed to protect employees from the costs of workplace injuries, and protect employers from lawsuits and other unpredictable costs.

Here's a closer look at what workers' compensation covers and does not cover in the state of Ohio.

Workers' comp covers the following:

  • Traumatic injuries
  • Repetitive-type injuries
  • Certain mental injuries
  • Occupational diseases

Real-life example of coverage:

A waiter at an Ohio restaurant gets a severe burn from a hot plate. The employee gets taken to the hospital to be treated for their injuries. A workers' comp policy would help pay for any related medical treatments and other costs.

Workers' comp does not cover:

  • Employee illnesses or injuries sustained outside of work
  • Accidents that occur while an employee is intoxicated
  • Intentional employee injuries to themselves at the workplace
Workers' Compensation Coverage Covered Not Covered
Traumatic injuries
Covered by Worker's Compensation
Repetitive-type injuries
Covered by Worker's Compensation
Certain mental injuries
Covered by Worker's Compensation
Occupational diseases
Covered by Worker's Compensation
Employee illnesses or injuries sustained outside of work
Not covered by Worker's Compensation
Accidents that occur while an employee is intoxicated
Not covered by Worker's Compensation
Intentional employee injuries to themselves at the workplace
Not covered by Worker's Compensation

An independent insurance agent can further explain what workers' compensation insurance both covers and excludes in Ohio.

Why Do You Need Workers Compensation Insurance in Ohio?

Workers' comp insurance is a necessity for most businesses for several reasons. For starters, it's actually required by law in most states, if your business has employees. Workers' comp also provides critical protection for your business against financial losses.

For most states, workers' comp is required immediately upon hiring a new employee. You'll want to be equipped with coverage before any of your workers get injured or ill on the job so that your business won't be held financially liable. Coverage doesn't kick in for workplace incidents until after you purchase a policy.

What Consequences Could You Face if You Don’t Have Workers’ Compensation in Ohio?

If your business doesn't carry workers' comp to protect your team, you could end up facing legal consequences like fines or jail time. Though some businesses think of workers' comp as optional or unnecessary due to the nature of their operations, coverage can provide important financial protection in case of an incident.

Workers' comp is mandatory in most states, including Ohio, if your business has one or more employees. Businesses in Ohio who allow their coverage to lapse due to non-payments can be charged fines of up to 15% of the premium due. Injured employees who get hurt while a policy has lapsed have the right to sue the business. 

Ohio Workers' Compensation Rules and Regulations

Ohio requires all businesses, regardless of the number of employees, to carry a workers' compensation policy. The workers’ compensation system in Ohio is different than in most other states. Ohio law requires every business with employees to provide workers’ comp purchased through a state agency. 

Workers' comp pays benefits to employees who get hurt or ill on the job. These policies cover medical bills and lost wages. Ohio’s workers' compensation program is a no-fault system, meaning that regardless of who's at fault, employees are guaranteed benefits if they get hurt or injured due to workplace activities. In turn, employees are exempt from filing lawsuits against the business.

How Much Does Workers' Comp Insurance Cost in Ohio?

The state of Ohio sets premium rates for all workers' compensation policies. The premium rates are designed to reflect job hazards. More hazardous professions carry higher premium rates than professions with low accident rates. 

Keeping a clean claim and accident record can also lower an employer’s premium. The BWC uses class codes that are set by the National Council on Compensation Insurance to identify the different classes of workers. The class codes are then assigned a premium rate by the BWC. 

Consider the following example:

  • Ohio Classification Code: 5645 Carpentry Three Stories or Less
  • Base Rate: $7.16
  • Employer Payroll: Example: $100,000
  • Premium Calculation: $7.16 per $100 or 7.16 percent of payroll.
  • Estimated Annual Premium: $7,160

Most employers have more than one class of employees. A plumbing company needs sales, accounting, and customer service staff in addition to their plumbers. All these employees fall under different class codes. The different class codes and premiums are added up to determine the complete workers' comp premium for the business. 

workers' comp

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Ohio Base Rate Examples

Rates for workers' comp insurance in Ohio may vary among insurance companies based on underwriting standards and credits offered by individual insurers.  

Here are some recent sample base rates (rate per $100 of employer payroll):

  • 5478 Carpet installation $3.93
  • 5222 Chimney Cleaning Industrial Smoke Stacks $3.09
  • 5037 Painting Metal Structures Over Two Stories $19.31
  • 5183 Plumbing NOC $2.74
  • 5551 Roofing All Kinds $13.85

Workers' Comp Cost Per Employee in Ohio

The cost of workers' comp coverage per employee increases with higher company payrolls, as these businesses cost more to insure. Check out a breakdown of how workers' comp costs vary by payroll range in each specific industry below.

Annual Workers' Comp Cost Per Employee

Businesses that have a greater track-record of safety and fewer accidents pay less for their coverage. Insurance companies have complex formulas to reset your rates after an accident, likely leading to a noticeable spike in your premiums.

Best Workers' Comp Companies in Ohio

Workers' comp is available from many different insurance companies in Ohio. Here are just a few of our top picks for quality workers' comp insurance carriers.

Top Workers' Compensation Insurance Companies Star Rating
Central Insurance Companies
5 star rating
Liberty Mutual 
4.5/5 star rating
EMC Insurance Companies
5 star rating
West Bend 
5 star rating
Selective Insurance
5 star rating

An independent insurance agent can help you look into these workers' comp insurance companies and get matched to the carrier who best meets your needs at the most affordable rate.

Top 6 Most Common Workers' Comp Claims/Injuries

Top 6 Most Common Workers Comp Claims
  1. Lacerations: In other words, deep cuts. These can happen in any industry, but are especially common in the restaurant and manufacturing fields. 
  2. Sprains/strains: Again, these injuries can happen in any industry, but are especially common in job settings where lots of twisting and turning is required.
  3. Contusions: In other words, bruises and other marks on the skin caused by impact. Contusions often happen from dropped objects, improper lifting, or colliding with an object.
  4. Burns: Burns can happen in any industry that has a heat source, including restaurants, construction businesses, bakeries, and more.
  5. Eye injuries: Eye injuries are most frequent in industries that require chemicals, including manufacturing, painting, and construction.
  6. Fractures: Fractures can happen to employees anywhere, but are especially common in industries that require a lot of movement and the use of heavy machinery.

Why Are Independent Insurance Agents Awesome?

It’s simple. Independent insurance agents simplify the process by shopping and comparing insurance quotes for you. Not only that, but they’ll also cut the jargon and clarify the fine print, so you know exactly what you’re getting.

There’s no business too small for our independent insurance agents. They have access to multiple insurance companies, ultimately finding you the best workers' comp coverage and competitive pricing while working for you.

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TrustedChoice.com Article | Reviewed by Paul Martin

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https://www.bwc.ohio.gov/basics/guidedtour/generalinfo/empgeneralinfo9.asp#:~:text=The%20penalty%20for%20failure%20to,late%20the%20payment%20is%20received.

https://www.employers.com/blog/2019/7-common-workers-compensation-claim-injuries/