The short answer
A remote employee’s work location can change workers’ compensation and employer-registration requirements. Before hiring or approving a move, check the relevant state rules and carrier requirements. Do not assume other-states wording automatically covers a new location. The rate and timing depend on the duties, state, policy and carrier.
Use this guide to prepare questions, not to establish coverage. Any unsourced costs, limits or timing ranges are illustrative planning examples, not quotes, verified market averages or carrier commitments.
How a workers’ comp policy covers remote employees
| Policy section | What it does |
|---|---|
| Item 3.A states | Full coverage in each state listed |
| Item 3.C other states | Covers benefits in states not listed, but usually not where you already had employees at the start of the policy |
| Monopolistic states | North Dakota, Ohio, Washington and Wyoming require their state fund; private policies don’t cover them |
| Stop-gap employers liability | Adds employers liability in monopolistic states |
The safe rule: put every state with an employee in Item 3.A before that employee starts.
Remote hire checklist
- Register with the state’s tax and unemployment agencies
- Add the state to Item 3.A, or buy from the state fund in a monopolistic state
- Check state wage rules; see wage and hour rules in California and New York
- Update headcount and payroll on employment practices and workers’ comp policies
- Consider a PEO if you’re hiring in many states at once
What multi-state workers’ comp costs
Office staff are rated at about $0.10 to $0.50 per $100 of payroll, and each state sets its own rates. Carrier minimum premiums of $500 to $1,000 can make the first employee in a state cost more than the rate suggests. StartupInsurance.ai quotes all your states on one policy where possible. See workers’ comp for startups.
Who can set up multi-state coverage
Some online policies cover only the home state, or a short list. StartupInsurance.ai places multi-state policies and adds states as you hire. For the rest of the Series A program, see the Series A insurance bundle. If remote hires are former contractors, see converting contractors to employees.
Get a contract check
Send us your hiring plan by state. We provide an initial written review within one business day after receiving the necessary information, with questions and next steps. Carrier quotes, coverage decisions and policy changes may take longer. Get a free contract check.
A few more answers
Frequently asked questions
Does my workers' comp cover an employee working from home in another state?
Only if that state is listed on the policy, or the other-states section applies. Other-states coverage often won't apply where you already had employees when the policy started, so list the state.
Do I need workers' comp for a single remote employee?
In most states, yes. A few states only require coverage once you reach three to five employees. Check the rule for each state where you hire.
What happens if an employee is hurt in a state that isn't on my policy?
You may be uninsured there, and states can fine employers without coverage. Other-states coverage may reimburse benefits, but don't rely on it for states where you already employ people.
Do I need to register as an employer in every state where a remote employee works?
Work location can create registration, payroll and other obligations. Ask your payroll adviser and counsel which requirements apply to the arrangement, and separately confirm the insurance changes with the carrier.
Do international remote employees need US workers' comp?
Employees based abroad can require local insurance and employment-law arrangements. US coverage, travel extensions and foreign voluntary coverage have limits. Review the specific country, employment arrangement and policy with qualified advisers.
General information, not a coverage determination or legal advice. Unless a specific source is identified, prices and timing ranges are illustrative planning examples—not measured market averages, quotes or guarantees. Policy wording, carrier, state and your company’s operations determine what applies.