Other states coverage

A workers' comp policy names the states where it applies in Item 3.A of its Information Page. Other states coverage is the backstop. Under Part Three of the NCCI standard policy, WC 00 00 00, if you begin work after the policy starts in a state listed in Item 3.C, and you are not otherwise insured there, the policy applies as though that state were in 3.A. Say a Texas landscaping crew takes a job in Oklahoma midyear (a hypothetical). If Oklahoma is in 3.C, the policy responds, and the insurer charges for the exposure at audit.

The limits are narrower than they look. Item 3.C typically reads "all states except" North Dakota, Ohio, Washington and Wyoming, plus any state in 3.A, because those four are monopolistic state fund states where the fund alone provides coverage. If you already have work in an unlisted state when the policy starts, you must tell the insurer within 30 days or that state is not covered. The policy also asks you to tell the insurer at once when you begin work in a 3.C state.

The pitfall is relying on it for known, regular operations. An employer that sends crews to a state every month should list that state in 3.A, so the correct classifications and rates apply and no one has to argue about notice. State-specific policy forms differ from the NCCI form. The guide on employees in several states covers how to structure coverage, and NCCI explains the standard forms.