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Out of State Workers Compensation: What You Need to Know


We have a lot of Michigan-based companies that travel to Ohio for work.

If this applies to you, we want you to be aware of how working out of state affects your workers compensation.

According to the Ohio Bureau of Workers Compensation (BWC), “Ohio’s workers’ compensation laws now recognize the extraterritorial coverage of an out-of-state employer for 90 consecutive days. The 90-Day Rule is applicable to all industries, including construction.”

However, there is an exclusion to this.

“The employee cannot receive compensation and benefits from BWC for claims arising out of a temporary period not exceeding 90 consecutive days. The rights of the employee and his or her dependents under the laws of the other state are the exclusive remedy,” According to the Bureau of Workers Compensation.

What does this mean?

If your employee works less than 90 consecutive days in Ohio, the workers compensation coverage, rules, and laws for the state your company operates in will be what covers your employees. In this case, it would be Michigan. If your employee works more than 90 consecutive days, you will need to pay premiums through Ohio’s BWC.

In situations like this, we recommend that you get Ohio Stop Gap coverage to help cover any insurance gaps for your business.

Ohio is a state that does not include employer liability protections in their workers compensation. If your employee receives workers compensation through Ohio because they’re exceeding the 90 Day Rule that keeps them covered under Michigan’s compensation laws, it will leave you without much needed liability protections.

This puts you at risk for being sued by your employee if they were injured or hurt during the time they’re working in Ohio. Stop gap insurance will help you avoid this gap in liability coverage.

If you’re currently having your employees travel to Ohio for work, be sure to talk to your insurance agent to learn more about your liabilities, coverage that’s needed, and any questions you have regarding workers compensation benefits.

You can also check out this Out-of-State Employers fact sheet from the BWC to learn more about workers compensation benefits for both current and non-Ohio residents.

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Headquartered in Rochester Hills, Mich., Allied Insurance Managers is one of the largest, privately-owned, independent insurance agencies in Michigan.