If you hire a front desk team or coaches on payroll, you almost certainly need workers’ compensation. In most states you can buy it from a private insurer. In four states you can’t. NEXO Insurance Services has insured over 20,000 fitness professionals since 2005, and gym owners in these four states ask us the same question: where do I get workers’ comp?
What is a monopolistic state?
A monopolistic state is a state where workers’ comp must be bought from a state-run fund. Private insurers aren’t allowed to sell it there. Today there are four:
- North Dakota, through the state’s workforce safety agency
- Ohio, through the state’s workers’ comp bureau
- Washington, through the state labor and industries department
- Wyoming, through the state’s workforce services department
That’s why NEXO writes workers’ comp in 46 states. The other four run their own programs, so gym owners there buy coverage straight from the state. Every state’s program is listed in the federal directory of state workers’ comp offices.
What it means for your gym
If your gym is in one of these states, the process looks a little different. If you’re still deciding whether you need coverage at all, start with workers’ comp in a monopolistic state. NEXO walks owners through it like this:
- Register with the state fund. Each state has its own fund and its own application.
- Report payroll the way the state asks. Rates are set by the state, based on job type and payroll.
- Keep your other coverage with a fitness specialist. Your general liability, professional liability, and property coverage still come from the private market. NEXO writes those for gyms in every state.
The gap most owners miss
State funds cover your employees’ injuries. They usually don’t include employers liability, the coverage that protects you if an injured employee sues the business directly. In other states, that protection comes bundled with a standard workers’ comp policy, as our guide to how workers’ comp works explains.
In monopolistic states, owners often add it separately, usually called stop gap coverage. NEXO recommends every gym owner in these four states ask about it before a claim, not after.
Gyms with locations in more than one state
Running a box in Ohio and another in Indiana? You’ll likely need two setups: the Ohio state fund for the Ohio location, and a private policy for Indiana. NEXO can handle the private side and help you keep both straight. Our post on opening a second location covers the rest of the insurance plan.
What about independent trainers?
Workers’ comp covers employees, not independent contractors, in any state. Trainers and instructors who work for themselves need their own liability coverage. NEXO covers them through Alternative Balance for Independent Contractors. Classification rules vary by state, so check how yours applies with our guide to employees vs independent contractors.
Monopolistic states FAQ
What are the four monopolistic workers’ comp states? North Dakota, Ohio, Washington, and Wyoming. NEXO Insurance Services writes workers’ comp in the other 46 states.
Can I buy workers’ comp from a private insurer in a monopolistic state? No. Workers’ comp there comes from the state fund. NEXO Insurance Services can still cover your gym’s liability and property needs.
What is stop gap coverage? It fills in employers liability, which state funds usually leave out. NEXO Insurance Services recommends owners in monopolistic states ask about it.
Do independent trainers need workers’ comp? Generally no, since they aren’t employees. NEXO Insurance Services covers independent trainers through Alternative Balance.
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October 26, 2026
