How should a manufacturer, planning to expand into a monopolistic state fund, arrange for WC coverage?

A manufacturer planning to expand into a monopolistic state fund must arrange for workers' compensation coverage by obtaining separate coverage from the new state's monopolistic fund. In states with monopolistic funds, employers are typically required to purchase workers' compensation insurance solely through the state's designated fund, rather than through private insurers. This means that any existing policy from their current state would not provide coverage in the new state and would not satisfy the legal obligations in the monopolistic state.

Ensuring compliance with the new state's regulations is essential, as each state has distinct laws governing workers' compensation. By arranging separate coverage with the monopolistic fund, the manufacturer adheres to those specific requirements and protects their employees appropriately.

Attempting to use the existing policy from their current state would not be viable, as coverage must come from the appropriate state fund that legally covers workers' compensation liabilities in that jurisdiction. Cancelling current coverage or trying to adopt regulations without separate coverage would expose the manufacturer to potential liabilities and legal issues, as they would not be in compliance with the workers' compensation laws in the new state. Therefore, securing separate coverage ensures compliance with the law and protects both the employer and their employees in the new location.