Nearly every state requires workman's comp insurance coverage, each with maddeningly different requirements. For those with operations in more than one state, navigating the muddy waters of multi-state coverage can be perilous. Luckily, however, you will find there are at least a few constants.
When seeking multi-state coverage, remember these 3 key facts:
1. You’ll need immediate coverage in these 4 monopolistic states:
Employees travel? If you operate North Dakota, Ohio, Washington, or Wyoming, you’ll need coverage right off the bat. Unlike the vast majority of the U.S., these states require employers to “obtain workman’s comp insurance from a compulsory state fund, or to qualify as a self-insurer (as is allowed in two of the jurisdictions)” – Ohio and Washington. For the latter two, you must meet the steep financial requirements set forth by those states to qualify.
2. Other states each require coverage with different time periods.
Anywhere between 5 and 30 days. Look into details for any operations lasting longer than a week, keeping abreast of rules in each state of business to avoid getting into difficulties should you need coverage in the event of an accident.
3. Your payroll must be broken down on a state-by-state basis.
When working in multiple states, it's imperative your payroll professional keep track of the total amount of earnings gained in each state – regardless of headquarters. Be certain to include each and every state, as insurance companies will be unlikely to pay claims from unreported states. Keep data up-to-date at all times to ward-off headaches that can occur from unexpected claims.
Multi-state workman's comp insurance issues giving you a headache? Minnesota Comp Advisor can help. Contact us today.