Most businesses that are legally required to have workers compensation insurance can choose any policy that meets Vermont’s requirement. Businesses that have workers who travel to other states, however, need a policy that extends coverage to the states in which the company’s employees travel. If you have a business in the area but send employees to other states, here’s how to find a workers compensation policy that will protect your employees when they’re outside Vermont.
Review the “Other States” Section of Your Company’s Workers Compensation Insurance If You Have Employees Who Travel Outside Vermont
Determine the Workers Compensation Laws of the States Where Employees TravelWorkers compensations laws are state-specific. In some cases, they vary a lot from one state to another. In other cases, the differences are only slight -- but it’s still important to be aware of them.
To make sure your business’ workers compensation insurance meets all of the requirements your company needs to be following, you’ll have to check the workers compensation laws in each of the states where your company’s employees travel. You’ll want to check all of each state’s workers compensation requirements, but there is one item in particular to look up. Find out whether each state requires companies to buy a workers compensation policy through the state’s workers compensation fund or lets companies purchase policies from the open market.
Purchase State-Funded Workers Compensation Insurance
If employees travel to any states that require companies to purchase workers compensation coverage through a state-funded program, you may need to get an additional policy from that state. Without a policy from the state, your employees may not be covered when they're in that state, and your company might be held liable for not following the state’s workers compensation laws
For help finding a state-funded workers compensation policy, you may want to contact the state’s offices or an insurance agent who is licensed in that state. If you don’t know who to call, your insurance agent might be able to recommend an agent who is licensed in the state you’re looking for a state-funded policy from.
Check Your Policy’s “Other States” Coverage
In states where companies aren’t required to purchase a state-funded policy, you may be able to cover your employees through your company’s existing workers compensation policy.
To find out if employees are already covered when they’re in a specific state, check the “other state’s” coverage your company’s policy. Your policy extends some coverage to any states that are listed here (although the coverage may be modified from the policy’s standard coverage). If a state is listed, your employees are likely already covered for incidental exposure, such as when they’re traveling through the state.
If a state isn’t listed, you may be able to add it to your policy. There may be a slight increase in premiums when you do, but the increase is usually less than the cost of purchasing a second policy for coverage in another state.
Talk with Your Company’s Insurance Agent
For help determining how to best find workers compensation insurance that covers your company’s employees when they’re traveling from Vermont to other states, contact your company’s insurance agent. They’ll be able to check your policy’s “other states” coverage and add states to this section of the policy. If you need to purchase a policy through another state’s program, your company’s agent in Vermont might not be able to get the policy for you -- but they should be able to help you find someone in that state who can. Whatever your company’s workers compensation needs are, its insurance agent is there to help.