Understanding Workers’ Compensation for Employees Traveling Out of State

You might assume your workers’ compensation policy only applies within your home state. But what happens if an employee gets hurt on a quick business trip? For example, they are attending a conference in Arizona or visiting a client in Nevada.

The good news: in most cases, your policy has you covered.

The Rule of Thumb

If your employee’s employment is principally localized in your home state — meaning that’s where they normally work or report from — your workers’ compensation policy typically extends protection even when they’re temporarily working or traveling elsewhere.

So if a California-based employee slips and falls while on a short business trip in Texas, your California workers’ compensation insurance policy would usually respond.

How Your Policy Handles This

Workers’ compensation policies have a section called:
Item 3.A – Covered States
This lists the states where your policy automatically provides benefits.

Then there’s Item 3.C – Other States Insurance, which acts as a safety net. It covers short-term or incidental work in states not listed in 3.A.
If your policy includes language like “All states except monopolistic states,” that means your employees are protected when they travel for temporary business outside your primary state.

When to Add Another State

That “Other States” safety net only goes so far.
If your business expands into another state — hiring local employees or setting up a remote team — you’ll want to add that state under Item 3.A to make sure you comply with local laws and avoid coverage gaps.

Also note: four states (North Dakota, Ohio, Washington, and Wyoming) are monopolistic, meaning they require a separate, state-issued workers’ comp policy.

Why It Matters

Even a quick, two-day business trip can lead to a claim — and if your policy isn’t set up correctly, you could be exposed to penalties or denied benefits.

By keeping your “Other States” coverage up to date, you’re protecting both your employees and your business from unnecessary headaches if someone gets hurt while on the road.

Final Thought

Workers’ compensation isn’t just about compliance — it’s about taking care of your people, no matter where work takes them.

If your employees travel, work remotely, or occasionally cross state lines, it’s worth a quick review to make sure your policy is structured the right way.

I help clients review these details all the time to make sure they’re fully protected in all states where they operate — even temporarily.

If you’d like a review of your current setup, feel free to reach out.

-JK