An Ohio nonprofit must carry workers' compensation from the state fund, the Ohio Bureau of Workers' Compensation (BWC), once it has one or more paid employees, just like any other employer. Officers of a nonprofit who volunteer their services as an officer are not employees, so an all-volunteer nonprofit with no paid staff usually has no mandate.
Who this is for: Directors and operators of Ohio nonprofits, from an all-volunteer group to a charity with paid program and administrative staff.
The short version
- One paid employee triggers mandatory BWC coverage; tax-exempt status does not change that.
- An officer who volunteers their services as an officer, without pay, is excluded from being an employee.
- Paid staff count, including part-time program staff, so a paid coordinator puts you under the mandate.
- Coverage comes only from BWC, and grants and leases often require proof of it before funds or space are released.
- Add a private stop-gap employer's liability policy, because BWC does not cover a direct lawsuit by an injured employee.
Employees, volunteers, and coverage
Workers' comp covers employees, not volunteers, so the first question for a nonprofit is who is actually on payroll. An all-volunteer organization frequently has no employees to insure, and Ohio specifically excludes an officer who volunteers their services as an officer. Once a nonprofit hires paid staff, coverage from BWC is required, and a paid coordinator hurt on the job is exactly what a comp claim is designed to handle. If you want volunteers protected, that is usually addressed with separate accident coverage, not workers' comp.
| Situation | BWC coverage required? | Why |
|---|---|---|
| All-volunteer, no paid staff | No | Volunteers are not employees; volunteer officers are excluded |
| One or more paid employees | Yes | Paid staff, including part-time, are counted as employees |
| Receives a grant or government contract | Often required by the funder | Funders commonly require proof of coverage |
| Leases program space | Often required by the landlord | Commercial leases frequently require it |
What often makes a nonprofit buy anyway
Even when the headcount is small, grants, government contracts, and building leases frequently require a nonprofit to carry coverage. Because BWC is the only source of statutory coverage in Ohio, meeting those requirements means opening a BWC account and, for the lawsuit exposure, adding a private stop-gap employer's liability policy. A judgment from an injured employee otherwise comes straight out of the mission's budget, which is why a nonprofit with paid staff almost always carries coverage.
An Akron example
Illustrative, not a quote. An Akron youth-services nonprofit runs mostly on volunteers but employs two paid program coordinators. The two paid staff put it under the mandate, so it opens a BWC account and covers them. A city grant it wins also requires proof of coverage for paid staff, which the BWC certificate satisfies. The volunteers are handled separately with accident coverage. When a coordinator trips carrying supplies at an event, BWC pays the medical bills, and the nonprofit's private stop-gap employer's liability policy protects its grant-funded budget if the injury becomes a direct claim.
Real questions Ohio owners ask
Does my Ohio nonprofit need workers comp?
Yes, once it has one or more paid employees. A nonprofit is treated like any other employer, so paid staff trigger required coverage from BWC. Tax-exempt status does not change the rule.
Do our volunteers make workers comp required?
Generally no. Workers comp covers employees, not volunteers, and Ohio specifically excludes an officer who volunteers their services as an officer. An all-volunteer group usually has no one for comp to cover.
Does tax-exempt status change the workers comp rules?
No. Being a tax-exempt nonprofit does not change the requirement. A charity with paid staff needs BWC coverage the same as a for-profit employer, and it faces the same consequences if it goes without.
Why do our grants require workers comp if we are small?
Funders and government contracts often require proof of coverage to protect themselves and the people the program serves. The headcount may be small, but you usually cannot accept the grant without showing coverage.
Can we cover our volunteers with workers comp?
Generally no, because comp covers employees. To protect volunteers, nonprofits usually add separate volunteer accident insurance rather than relying on a workers comp policy, which is built for paid employees.
Where does our nonprofit buy the coverage?
Only from the Ohio Bureau of Workers' Compensation, the state fund. Ohio is monopolistic, so there is no private carrier to shop, and a private policy does not meet the requirement for your paid Ohio staff.
Do our board members count as employees for comp?
Unpaid board members who volunteer their service are generally not employees, so they do not trigger coverage. If a board member is also a paid staff member, their paid role is what a comp claim would address.
Why Ohio owners choose Morrow
- We shop the right market for you. In Ohio, workers' comp is sold only by the state-run Ohio Bureau of Workers' Compensation (BWC), so we handle your BWC enrollment and payroll classifications and place the private stop-gap employer's liability and other-states coverage the state fund does not include.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Ohio guides
Every Ohio business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Ohio (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Hiring your first employee: what changes
- What workers comp does not cover
- Ohio nonprofit workers comp
This guide is general information, not legal advice. Ohio rules and penalty amounts can change, so verify current requirements with the Ohio Bureau of Workers' Compensation (BWC) or a licensed advisor before you rely on them. Last updated: July 2026.