New Projects across State Lines
It’s important to get workers compensation right as your business expands.
Employers in almost every state in the United States are required to provide Workers Compensation Insurance, though state laws vary regarding specific triggers, such as the number of full-time or part-time workers, the hours worked, and how subcontractors’ employees are counted. One thing that is crucial to remember as your business expands or you send workers over state lines for business duties: You may need to abide by those states’ workers compensation insurance requirements as well as Michigan’s.
For example, if you send workers across the border into Wisconsin, you may be required to have a workers compensation policy through a company licensed to write workers compensation insurance in Wisconsin. Policies typically have to be endorsed (specifically added to) with the name(s) of the states outside of Michigan in which your employees will work or travel. If you don’t already do business across state lines but think you might during your policy period, you can ask your Trusted Choice® Independent Insurance Agent to adjust your policy by listing such states in Section 3.C. Remember, though, that some states, including Wisconsin, have their own rules and may require more than just a 3.C. endorsement.
Short-term or temporary work as well as travel to and through other states might need to be covered in your workers compensation policy, so thoroughly review your plans for conferences or conventions, temporary assignments and business meetings. You can usually add states outside Michigan during your policy term should an occasion arise.
Leaving a state where duties will be performed off a workers compensation policy can expose an employer to out-of-pocket liabilities. Moreover, employees may seek benefits from the most generous state allowable under the circumstances. If your employees will be traveling abroad, you definitely need to talk to your Trusted Choice® Independent Insurance Agent about ensuring appropriate coverage, including on-scene medical treatment and transportation of family to the worker or of the worker home.