Remote workers and employees in more than one state

Coverage follows the worker

Workers' comp is state law, and an injured worker may be able to file a claim in the state where they live, where they were hired, where they usually work, or where they got hurt. If your policy does not list that state, you could face a claim with no coverage, plus penalties for not having insurance there.

How a standard policy handles other states

A standard policy has two places for states on the information page:

• Item 3.A lists the states where you have workers now. The policy pays those states' benefits.
• Item 3.C lists other states where you might have work in the future. It can cover a claim there if you tell the insurer quickly after work begins.
• Item 3.C usually cannot include the four state-fund states: North Dakota, Ohio, Washington, and Wyoming.

Remote employees

An employee who works from home in another state is usually covered under that state's law. Tell your insurer as soon as you hire someone who lives in a new state, and make sure that state is listed on your policy. Report their payroll under that state.

Traveling crews and temporary work

Many states have "extraterritorial" rules that let a worker from your home state work there for a short time under your home policy. These rules differ a lot. Washington, for example, accepts coverage from some nearby states for temporary work but not for construction from Montana or Nevada. Washington employers whose workers spend 30 days or less in another state in a year report those hours to Washington.

State-fund states need extra steps

If you have workers in North Dakota, Ohio, Washington, or Wyoming, you generally must get coverage from that state's fund for work there. Employers based in those states who send workers elsewhere may need a private policy for other states. Ohio's Bureau of Workers' Compensation offers an optional Other States Coverage program for some Ohio employers.

A simple checklist

Before work starts in a new state:

• Tell your agent where the work is, how long it will last, and how many workers will go.
• Confirm the state is on your policy, or get a separate policy.
• Check that state's posting and injury reporting rules.
• Track payroll by state so your audit is correct.