Workers compensation for a small business

Rough Notes, Dec 2000 by Utschig, LeRoy H

Had the proper wording been put on the policy, covering all states, there would have been coverage for the employer's liability claim. If a workers compensation contract is issued to cover in any state other than the monopolistic fund states, employers liability coverage can be endorsed on to provide coverage in the monopolistic fund states.

Foreign workers comp

Two decades ago, it was rare to even think about workers compensation coverage applying in a foreign country. It was usually only the very large firms that had an exposure in other countries. That has changed. Today many businesses, including small businesses, will have an occasional workers compensation exposure in a foreign country.

We will not deal with the situation of hiring foreign nationals to work in their own country. This kind of exposure is best dealt with in discussions of international insurance. Here we will deal with the situation of a U.S.A.-based employee being temporarily in a foreign country. A good example of this is the insurance agent attending a conference at one of the Caribbean islands. Let's say Riverside Hardware Store sends an employee to a foreign supplier to view a new line of products for the following season. The employee is injured while in the foreign country. She will be hospitalized for at least six weeks.

The first question is, "Will the workers compensation coverage provide any coverage to a worker injured in a foreign country?" Your workers compensation policy will probably not answer this question. Covered territory is per an individual state's Workers Compensation Act or a decision passed down by the state workers compensation department or bureau. Is there coverage in a foreign country? You might even find that it is difficult to get an answer to this question. Many insurance companies have already researched this question. They might be your easiest and best source of information on this issue.

Another question would be, "Is there coverage to transport the injured employee back to the United States?" In an actual case, a U.S.A.-based employee sustained nerve damage in his neck causing him to be paralyzed. Since better medical care was available in the United States, it was decided to transport him back home. This meant transporting him to the airport by ambulance with medical care providers in the ambulance with him. A special plane was required to transport him. Again, medical care providers rode on the airplane with him. Back in this country, an ambulance again transported him with medical care providers in attendance.

Think about all of the expense involved in this situation. As far as I know, regular workers compensation policies do not provide coverage for repatriation.

Many insurers do write workers compensation coverage that includes repatriation loss exposures.

Summary

Work-related injuries, sickness or disease trigger workers compensation coverage.

Private insurers provide workers compensation coverage in most of the states.

Monopolistic fund states require that all workers compensation be purchased from the state.