16.8 Part Three – Other States Insurance

The policy can provide coverage for employers with operations in multiple states, as permitted by state law. Employers must list the states where they currently operate and any states where they may have future exposures on the Information Page. However, employers with operations in monopolistic states must purchase Workers' Compensation coverage directly from the state insurance fund, as private insurers cannot provide this coverage in those states.

How This Insurance Applies

The Information Page may list states where Other States Insurance applies. If the employer begins operations in one of these listed states after the policy becomes effective and is not otherwise insured or self-insured there, coverage automatically extends to that state. The employer must notify the insurer immediately when work begins in a listed state. If operations begin in a state not listed on the Information Page, the insurer must be notified within 30 days for coverage to apply.

If a state's laws require benefits that the insurer is not legally permitted to pay directly to the injured employee, the insurer will reimburse the employer for those required benefit payments, subject to the policy terms.

An Insurance Story

A retail company operates stores in several states. Because Workers' Compensation benefits are determined by the state where an employee is injured, the employer should list each state in which it operates on the Information Page to ensure appropriate coverage.

A coffee shop currently operates in one state but plans to expand into another. If permitted by state law, the employer can list both states on the Information Page before operations begin. If the new state is not listed, the employer must notify the insurer within 30 days of starting work there for coverage to apply. If the new state is monopolistic, the employer must obtain Workers' Compensation coverage through that state's insurance fund rather than through a private insurer.