California’s State fund recently issued the following statement on Assembly bill 288:
Currently, California-based businesses that are insured with State Fund need to obtain a separate workers’ compensation policy to cover employees who work out of state.
Assembly Bill 288, Fuentes, would amend the California insurance code to provide clear authorization for State Fund to offer workers’ comp insurance that will cover a California employer’s out of state employees, will reduce red tape, and improve efficiency. As currently written, the insurance code is ambiguous – it doesn’t say we can’t, but it doesn’t explicitly say we can either. We want to ensure this authority is articulated clearly.
Right now a California employer that’s insured with State Fund has to obtain at least one, maybe more, separate policies to cover their employees who work outside California. That’s extra time and paperwork. This legislation will significantly streamline the insurance process for employers and brokers who are interested in getting a quote from State Fund and provide greater choice and stability to the businesses of our state. And coming out of the worst recession in recent memory, we think removing obstacles to business and job growth in California is a good thing.
This is currently being done in many other states. Of the 26 State Funds around the country, 16 currently serve their state’s employers by providing coverage for out of state employees:
Many private companies, of course, already offer one-stop shopping by accommodating their policy holders’ coverage needs regardless of state borders. This legislation would level the playing field for employers who want to work with State Fund. We think healthy competition is good for the market and for California employers.
Source: CA State Fund