What must an employer do to ensure proper workers' compensation coverage for employees sent out of state?

Study for the PSI Property and Casualty Exam with flashcards and multiple choice questions. Each question has hints and explanations. Prepare effectively for your insurance licensing exam!

To ensure proper workers' compensation coverage for employees who are sent out of state, an employer must list the state on the information page for other states' coverage. This is crucial because workers' compensation laws can vary significantly from one state to another, including requirements for coverage, benefits, and reporting. By delineating the states where employees may be working outside of their primary state of employment, the employer can ensure that the workers are adequately covered and compliant with those states' regulations.

This step not only helps in managing the risks associated with workers' compensation claims but also assists in maintaining legal compliance with state laws. It provides clarity in the coverage afforded to employees—indicating that there is recognition of the work being performed out of state and that the associated risks are being managed through the appropriate insurance channels. By doing this, employers protect themselves from potential liabilities that could arise from employees being injured while on duty in jurisdictions where they may not have originally had coverage in place.

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