Purchasing workman's comp insurance can be complicated and confusing, and with each state holding its own laws and rules, choosing a plan can be twice as daunting to those operating in multiple regions.
How can you be certain your multi-state company is properly insured?
When getting a workman's comp insurance quote, consider these essential questions:
1. Does your company offer coverage in all our states of business?
Be certain to include both actual and anticipated states of operation within the coming year. If your new policy does not cover ALL states, you’ll have to purchase a new policy for those overlooked.
2. How are out-of-state employees handled?
States vary in how long employees can operate out-of-state before state-specific coverage is required. Some require it upon start date, others allow a 5-30 day leeway. In any case employees must be covered through their home state.
3. Am I eligible for interstate rating?
Interstate rating allows the use of an experience modification factor for multiple states. The National Council on Compensation Insurance uses this rating for employers with previous experience and payroll in more than one state. With this, premiums for multi-state exposure can be calculated using loss experience history and the amount of time you’ve had employees in other states.
Dealing with monopolistic states
Interstate workman's comp insurance woes? Minnesota Comp Advisor can help you clear up confusion. Contact us today.
In Ohio, Washington, Wyoming, and North Dakota, where the state government sells workman’s comp insurance, you can contact the state directly for coverage. For those with limited employees and payroll who meet state-specific time frames and financial requirements, self-insurance may be an option.