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Ohio workers' comp for trucking fleets: how BWC works

Helm PartnersUpdated Oct 25, 2026Sources checked Oct 25, 2026

Helm Partners is a trucking-only insurance agency being formed in Michigan. Our Michigan license is pending. We do not quote or sell insurance until licensed. We are not licensed in any state yet, including Ohio, and do not quote, sell or place insurance there. This guide is general information, not advice on any policy.

Short answer

Ohio trucking companies get workers' compensation from the Ohio Bureau of Workers' Compensation (BWC), unless BWC approves them to self-insure. Private insurers cannot write it in Ohio. Coverage is required once you have one employee, and you apply on Form U-3 with a $120 fee. Ohio law treats a driver who hauls for a motor carrier as an employee unless all seven factors in ORC 4123.01 apply.

In this guide
  • Why Ohio is different
  • Company driver or owner-operator
  • Drivers who leave Ohio
  • Owners and partners
  • What to keep on file
  • FAQ

Ohio is one of the few states where workers' comp comes from a state fund. For a fleet adding drivers, the questions are who counts as an employee, how drivers who leave Ohio are covered, and what to keep on file.

Why Ohio is different

  • State fund. Ohio law voids contracts that insure an employer against Ohio workers' comp liability and bars any license to issue them, with narrow exceptions such as excess coverage for self-insuring employers (ORC 4123.82).
  • Self-insurance. Employers with enough financial ability that follow BWC's rules can be granted the privilege of paying claims directly (ORC 4123.35).
  • Everyone else applies to BWC on Form U-3, online at bwc.ohio.gov or by mail, with a $120 non-refundable fee. Coverage is not in effect until the application and fee are submitted.
  • Hired before applying? The U-3 says BWC calculates a no coverage penalty from the first hire date to the policy's effective date.

Company driver or owner-operator

Ohio law treats a driver who hauls for a motor carrier as an employee unless all seven factors apply (ORC 4123.01(A)(1)(d)). BWC's trucking policy, effective February 17, 2026, lists them (BWC policy EP-20-05):

  1. The driver owns the truck, or leases it under a bona fide lease that is not a temporary replacement lease.
  2. The driver supplies the personal services to run the truck.
  3. Pay is based on the work, such as a mileage rate or a percentage of rates, not only on hours.
  4. The driver substantially controls how the work is done, within regulations and the shipper's specifications.
  5. A written contract with the carrier describes an independent contractor relationship, not employment.
  6. The driver pays substantially all principal operating costs: maintenance, fuel, repairs, supplies, vehicle insurance and personal expenses. The carrier may still pay its fuel surcharge and incidentals such as tolls, permits and lumper fees.
  7. The driver carries the economic loss or gain from the arrangement.

Driver leases the truck? A lease from the carrier the driver hauls for is not a bona fide lease under Ohio law. BWC also looks for a term near one year or longer, real lease payments in the settlements, and the driver's right to use the truck for other companies. If the papers BWC asks for are not provided, BWC treats the driver's pay as reportable payroll.

Whether a driver meets all seven factors depends on the facts. For your situation, check with BWC or an attorney.

Drivers who leave Ohio

  • Home terminal in Ohio: all of that driver's payroll is reportable to BWC, wherever the driver lives, and BWC responds to claims inside and outside Ohio.
  • Ohio resident with a home terminal in another state: payroll goes to the trucking company's insurer in that state, except work done in Ohio, which is reported to BWC.
  • Out-of-state drivers passing through: BWC recognizes the other state's coverage for temporary work in Ohio of up to 90 consecutive days (BWC multistate policy).
  • Another state's law may still apply. BWC says Ohio coverage for an injury outside Ohio may not satisfy that state's law. Under ORC 4123.292 an employer can elect other-states coverage: file Form U-131 with a copy of the other-state policy, then report Ohio work to BWC and out-of-state work to that insurer. BWC's own other-states coverage asks trucking applicants for Form U-159.
  • Splitting payroll: BWC may use IFTA mileage, ELD or GPS records to check the split.

Owners and partners

Coverage on the owner is elective for sole proprietors, partners, LLCs acting as a sole proprietor or partnership, and individuals incorporated as a corporation. Apply on Form U-3S. BWC's form warns that if you do not cover yourself and are hurt at work, BWC will not provide coverage.

What to keep on file

  • Your BWC policy number and certificate of coverage.
  • For each owner-operator: the written contract, the truck title or bona fide lease, and settlement records.
  • Mileage by state from IFTA or ELD records, if you split payroll.
  • Any U-131 and the other-state policy.

More Ohio guides: PUCO intrastate registration, oversize permits and the OS-32, owner-operators: IRP and IFTA and starting a trucking company in Ohio. Hiring in general: hiring drivers for a small fleet.

FAQ

Can an Ohio trucking company buy workers' comp from a private insurance company?

No. Ohio law voids contracts that insure an employer against Ohio workers' comp liability, with narrow exceptions such as excess coverage for self-insuring employers (ORC 4123.82). Coverage comes from BWC or from BWC-approved self-insurance.

Is a leased-on owner-operator an employee for Ohio workers' comp?

Not if all seven factors in ORC 4123.01(A)(1)(d) apply, including owning the truck or leasing it under a bona fide lease, pay based on the work, a written independent contractor contract and paying the main operating costs. If any factor fails, the driver is treated as an employee.

How does a trucking company apply for Ohio workers' comp?

File Form U-3 with BWC, online at bwc.ohio.gov or by mail, with the $120 non-refundable application fee. The form says coverage is not in effect until the application and fee are submitted.

Does BWC cover drivers when they run outside Ohio?

If they report to a home terminal in Ohio, BWC responds to claims inside and outside Ohio. BWC says that coverage may not satisfy another state's law, so an employer can also elect other-states coverage by filing Form U-131 with the other-state policy.

Does the owner have to be covered?

No. Coverage is elective for sole proprietors, partners, LLCs acting as a sole proprietor or partnership, and individuals incorporated as a corporation. BWC warns that if you skip it and are hurt at work, BWC will not cover you.

What if drivers were hired before the policy started?

The U-3 says BWC calculates a no coverage penalty from the first hire date through the policy's effective date, using the payroll estimate and classification.

Helm Partners is a trucking-only insurance agency being formed in Michigan. Our Michigan license is pending. We do not quote or sell insurance until licensed. We are not licensed in any state yet, including Ohio, and do not quote, sell or place insurance there. This guide is general information, not advice on any policy. For your own situation, check with BWC or an attorney.

Sources