Workers’ Compensation Coverage for Multi-State Firms

If you have locations or workers in multiple states, then your workers’ compensation coverage may be more complicated than you realize. Workers’ compensation coverage written in one state may not protect you if workers are injured in another. Though some policies cover multiple states, others limit coverage to the state where the policy was written. In addition, some states only allow claims to be covered by policies written within that state.

Work with the Right Broker

Your workers’ compensation broker should have experience handling multi-state companies. In addition, your broker must be licensed in each of the states you do business in and should understand the nuances of each state’s workers’ compensation regulations. For example, North Dakota, Ohio, Washington, and Wyoming require workers’ compensation insurance to be purchased through their state programs. If you are based in one of those states, you’ll need a different coverage for any workers you have out of state. Or if you’re based somewhere else but have workers in any of those states, you’ll need to procure additional coverage through their state fund. Also, some states treat uninsured independent contractors or subcontractors the same as employees for workers’ compensation purposes, so your broker should understand the implications of those state laws as well.

Give your Broker the Facts

Your broker can only help you if they know all the facts. Make sure to tell them:

• The size of your workforce.
• In which states do you have operations or workers?
• If you employ independent contractors or subcontractors, and in which states?
• Which state(s) your employees were hired in.

If any of the above information changes, be sure to inform your broker immediately so that you remain covered in each state you do business in.

Know your Rates

Not all states calculate modifiers the same way, which can result in differing premium amounts in different states. Your broker should understand how each state you do business in calculates workers’ compensation premiums, so they can ensure that you will not be overcharged and that you have an accurate amount to budget for.  

To learn more about workers’ compensation coverage for your multi-state firm, contact Veritas Risk Management & Insurance Services today.