Ohio does workers’ compensation a little differently than most of the country. Employers here buy coverage through the Ohio Bureau of Workers’ Compensation instead of a private insurer, making Ohio one of only four monopolistic states, alongside North Dakota, Washington, and Wyoming. The state fund leaves out one piece many business owners assume came with it.
What the BWC Policy Does, and What It Skips
In most states, a workers’ comp policy has two halves. Part one pays statutory benefits like medical care and lost wages. Part two, employers liability, defends the business when an injury turns into a lawsuit. Ohio’s state fund provides only the first half.
Claims That Can Land Outside the BWC
- Third-party-over actions: An injured worker sues another company, which then turns around and sues the employer.
- Family claims: A spouse or relative seeks damages, such as loss of consortium, tied to the worker’s injury.
- Dual capacity claims: The employer is sued in another role, like the maker of a product the employee used.
- Employer intentional tort claims: Lawsuits under Ohio Revised Code 2745.01 alleging the employer intended the injury.
How Stop Gap Coverage Fills the Hole
Stop gap coverage restores that missing employers liability piece. It is usually added as an Ohio-specific endorsement to a general liability policy, or written as a standalone employers liability policy. One important caveat: Ohio public policy limits insuring deliberate intent to injure, so intentional tort protection often leans toward defense costs rather than full indemnity. Wording varies by carrier.
Questions to Bring to Your Renewal
- Does my general liability policy include an Ohio stop gap endorsement?
- What limits apply, and do they match my umbrella coverage?
- How does the form treat intentional tort allegations?
Ferrell Agency in Columbus, OH helps employers line up their BWC coverage with the liability pieces around it. Our breakdown of general vs. professional liability pairs well with this topic. For legal questions about a specific claim, an employment attorney is the right resource.
Review our commercial insurance options or reach out to Ferrell Agency, serving businesses across Columbus, OH and Central Ohio.
