Workers' Compensation

Workers’ Compensation Coverage for Out of State Employees

Ella Baker
Workers' Compensation Coverage for Out of State Employees
Reading time 5 Mins
Published on Aug 21
Share

Covering your employees beyond the borders of Ohio

While the Ohio Bureau of Workers’ Compensation (BWC) generally provides coverage for employees of Ohio-based companies working temporarily or permanently outside of Ohio, problems can arise when injured employees file their claims in a state that does not recognize BWC’s coverage. This leads to complications including penalties for the employer and delayed treatment for the injured employees.

Some states require Ohio employers to obtain workers’ compensation coverage in their state, in addition to BWC’s coverage, for any work performed by their employees in that state, regardless of the amount of work performed by the employee in that state. Ohio’s border states such as Michigan, Pennsylvania and Kentucky do not recognize Ohio BWC coverage. West Virginia recognizes BWC coverage “for a period not exceeding 30 calendar days in any 365-day period.” Indiana will respect Ohio’s jurisdiction, and does not limit it to a certain amount of days, but this provision is for employees who are Ohio residents who are temporarily in working in Indiana. To address these issues, BWC developed Other States Coverage as a solution for Ohio employers who send employees outside the state or who have employees in multiple states.

Other States Coverage

The Other States Coverage policy was developed for Ohio employers that have out-of-state employees but have been unable to secure coverage in the private marketplace of other states. The policy is not intended to compete with the private market workers’ compensation coverage offered by other states. For small and mid-size businesses obtaining additional workers’ compensation coverage in other states can be difficult, particularly if their exposure is limited. This policy:

  • Helps prevent gaps in coverage and limits your exposure;
  • Protects employers from stop-work orders or penalties in other states;
  • Provides Ohio BWC coverage that ensure peace of mind for employers and employees at affordable rates.

BWC is working with United States Insurance Services and Zurich Insurance to offer this optional coverage to employers who may face financial exposure while working outside the state of Ohio.

  • Ohio employers apply directly to BWC using the ACORD 130 application, an insurance industry standard form. Employers can work with their insurance agent to complete this form or request it directly from the Other States Coverage unit via email at [email protected], or by calling 614-728-0535. Below you’ll find a link to help walk you through completing the ACORD 130.
  • BWC will determine eligibility and the premium cost for this coverage.
  • Zurich Insurance will handle all claims filed for benefits under the laws of jurisdictions outside Ohio under this program.

General requirements

An employer must:

  • Have active coverage with BWC;
  • Have coverage lapses that do not exceed 40 cumulative days in the last 12 months;
  • Have no past-due balances.

BWC also will review an employer’s experience modifier, loss history and safety record in Ohio and other jurisdictions. In addition, BWC will examine other pertinent information to determine eligibility. BWC has established the guidelines below to determine if an employer is eligible for this optional Other States Coverage, including but not limited to the following:

  • Two-thirds of total payroll must be reported in Ohio for all related business operations;
  • An Ohio experience modifier under 1.5;
  • An out-of-state experience modifier under 1.5 (if applicable);
  • A history of timely payments of premium and assessments to BWC.

BWC will review each employer’s situation individually in making eligibility decisions. There is no minimum premium requirement to apply for Other States Coverage. Self-insuring employers, temporary employment agencies, staffing entities and professional employer organizations are not eligible for Other States Coverage through BWC. In addition, employers with operations that include certain high-risk manual classifications are not eligible.

Please note that BWC require that all states with known or potential exposure be covered through the BWC issued Other States Coverage policy. For Ohio-based employers seeking Other State Coverage, both the employees performing work in other states and the employer must complete the Employer/Employee Agreement to Select Ohio as the State of Exclusive Remedy for Workers’ Compensation Claims (Form C-110). Ohio BWC will not provide Other States Coverage concurrently with another carrier, eliminating the potential for unnecessary coverage disputes.

BWC will only provide a quote for all states of known exposure. If the employer has current coverage with another carrier, notice of cancellation or expiration is required prior to issuing an Other States Coverage Policy.

Protect your company

Other States Coverage can allow multi-state employers to simplify and streamline the workers’ compensation claims and payment processes. Ensuring that your employees, whether they perform work in Ohio or not, are covered in case of injury sustained in the workplace is priority number one for the BWC and your company. Other States Coverage can help make sure that you don’t have any gaps in coverage for your employees.

Contact a Sheakley Workers’ Compensation expert today to learn more about how workers’ compensation applies to your business. Working with more than 16,000 employers across Ohio, Sheakley’s Workers’ Compensation team has the experience to help you make the best decisions for your organization.

Stay up-to-date on all things Sheakley by subscribing to our blog and following us on social media. Join in the discussion by commenting below.


You may want to read

See all articles
X
X
X
X