What to Know about Multi State Work Comp Insurance Coverage

Written by on 7/10/2017 2:00 AM in , , . It has 0 Comments.

Workers comp is confusing enough, but multi-state work comp can be a mind-numbing web of headaches. Get to know these basics to avoid the most common multi-state pitfalls…

There are 3 Key Facts for Multi State Coverage:

1. These 4 States Typically Require Coverage from Day 1
These monopolistic jurisdictions require workers’ comp insurance from a compulsory state fund (or proof of qualification for self-insurance) from the onset of business…

  • North Dakota
  • Wyoming
  • Ohio
    *Several requirements for self-insurance.
  • Washington
    *$25 million in assets allows you to self-insure here.

2. Payroll Should Be Broken Down State by State
It's critical to track how much is earned in each state. Regardless of home office, a payroll breakdown for every state in which you operate is required. Otherwise, insurance is unlikely to pay claims from unreported states. Accurate and up-to-date payroll at all times is key to avoiding huge workcomp headaches in the event of an unexpected accident.

3. Length of Stay Should Be Known In Advance
Each state differs in terms of the length of time required before state-specific workers’ comp is necessitated, varying anywhere between 5 and 30 days before an in-state plan must be in place. Because of this, you should always know in advance the time frame you’re dealing with when you have an employee traveling to another state.

Luckily, there are multi-state work comp resources available to help you plan for your coverage needs. Some forethought and research could protect your business against significant liability in the event of an incident.

Multi-state headache? Minnesota Comp Advisor has the cure. Contact us for relief today.

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