Your current workers’ compensation policy may extend to the new state, but do not assume it does. Before the employee’s first workday, confirm the applicable state coverage, notification conditions, any required change and its effective date. Check employers’ liability separately if a state-fund arrangement is involved. A general assurance that remote workers are covered does not resolve the new-state question.
Start with the employee’s actual work location
Start by identifying where the remote employee will actually perform their job. Do not rely only on your headquarters or incorporation state. Travelers’ U.S. overview describes state-by-state differences in workers’ compensation coverage and insurance arrangements.
Build a short hiring record: employing legal entity, regular work state, first workday, expected duties and whether the arrangement is ongoing or temporary. Use the same process when an existing employee proposes moving. This record prepares the coverage review; it does not determine which state’s law applies.
This checklist concerns a U.S. employee hire. Contractor classification and international remote work need separate reviews.
Ask which policy provision addresses the new state
Have the insurer or broker identify the actual documents supporting the answer, rather than relying on a general description of remote-work or multi-state coverage. The questions below turn a broad assurance into a specific policy review.
Request the policy document or endorsement supporting the explanation and keep them together. Track unresolved questions separately from payroll onboarding, so completing the payroll setup does not become your team’s only coverage checkpoint.
- Covered states: Is the employee’s work state included in the policy’s state listings or an applicable endorsement?
- Cross-state extension: If the state is not listed, what provision could apply, and does it address a planned, ongoing hire?
- Notification conditions: Who must receive notice, by what method and deadline, and what event starts that deadline?
- Effective date: Does any required policy change take effect by the employee’s first workday?
