Will Workers Compensation Cover Injuries Outside The Building?

The question of workers compensation insurance is less about whether you're on the premises than whether you're on the job. The key phrase there is "on the job." The insurance is there to cover employees injured in the line of duty. Whether you're working in the office or making a delivery three counties over, the insurance follows the job.

This means that an employee injured while not on the job will not be covered by workers compensation insurance. However, that doesn't mean that they can't hold their employer responsible.

For instance, if an employer asks an employee to run some work errands while off the clock, workers compensation might not pay for any injuries sustained in the performance of the task. But the employee may be able to sue their employer over the incident. For this reason — and others — it's never a good idea to ask employees to perform work duties off-the-clock. If something goes wrong, it might not come out of your insurance, but it could very well come out of your pocket.

What About Across State Lines?

Different states have different laws regarding workers compensation across state lines. Every state offers some kind of extraterritorial protection to policyholders, but some states have certain limitations on these benefits. These limitations may include time limits — meaning that an employee may only qualify for workers compensation benefits for a certain number of days. Long-stay work trips, lasting weeks or months, may require the establishment of a business entity — and the purchase of additional insurance — in the other state.

Benefits may even be extended to protect employers and employees outside of the United States. These will almost invariably be restricted to a certain length of time.

While local economy is still important, running a business in the modern day will almost certainly require an out-of-state trip now and then, and running a larger business may require international travel on a regular basis. Fortunately, workers compensation policies are written with this in mind.

On The Job

The bottom line is simply this: If the employee is on the job, they're generally going to be covered by workers compensation.

As an employer, the safest course of action is always to review your policy and state law when it comes to travel. And don't ask anyone to perform job duties off-the-clock.

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