Workers Compensation Coverage Impact
As difficult as it is to watch the impacts of recent hurricanes Harvey and Irma on Texas, Florida, Georgia and South Carolina, we also know these catastrophic storms come with insurance implications.
For workers compensation, this means potential jurisdiction issues for companies going to storm-impacted areas. We’d like to work together to minimize potential coverage and claims questions, regulatory issues and audit confusion. We recommend adding any new states and projected payroll to your active policies via endorsement to alleviate these potential issues.
1. Florida does not recognize workers compensation coverage unless the State of FL is listed in section 3A on the policy; the 3C other states endorsement is not applicable.
2. Texas operates with both a traditional workers compensation market and an Opt-Out provision. Prolonged work in the state should be added via section 3A and payroll included with the policy.
3. While Georgia and South Carolina don’t have any special provisions in their workers’ compensation rules, we still strongly recommend having any new states (and any new potential class codes) added to existing workers compensation policies.
4. Traveling out of state brings additional safety and hiring considerations as well. Companies need to make sure staff are getting proper rest and nutrition, and make safety a priority when working in unfamiliar locations. In the past, we’ve seen companies relocate to storm-damaged areas from all over the country – particularly northern states as the construction season winds down. Don’t consider this just to be an issue for states closer to the storm damage.
5. Any policyholder with an assigned risk policy will NOT have any coverage in Texas or Florida via their out-of-state assigned risk policy. A separate policy for Florida and Texas must be in place for coverage.