Business is no longer confined by geography. Employees travel for conferences, work remotely across state lines, or even relocate permanently. This creates a crucial question for employers: how do you ensure your work comp coverage protects your employees regardless of location?
Here’s a breakdown of what you need to know about work comp for out-of-state employees:
Temporary vs. permanent work
- Temporary assignments: If an employee is on a short-term trip (think a week-long conference), your home state’s work comp policy might still cover them. However, there are usually time limits on this coverage. Double-check with your insurance provider to understand the specifics.
- Permanent relocation: Employees moving to a new state will need work comp that complies with that state’s regulations. This might involve obtaining a separate policy or ensuring your existing carrier offers coverage in the new location.
Changes to your policy endorsements effective Jan. 1, 2025:
We’re removing the “Limited Coverage for Temporary and Incidental Operations in Other States” endorsement.
- All states where your company regularly operates will be included in 3a of the standard work comp insurance policy.
- All other MEM-licensed states will be listed in 3c.
This is an update on how we handle insurance coverage across different states to better clarify the scope of your coverage.
What you need to know
- Communication is key: Employees working out-of-state should be clear on their work comp coverage. Knowing where and how to file a claim in case of an injury is essential.
- Stay proactive: Don’t wait for an incident to address coverage gaps. Consult your insurance provider to ensure your business and employees are fully protected, regardless of location.
By understanding work comp for out-of-state employees, you can ensure a smooth experience for your workforce and avoid potential legal and financial headaches down the road.