What is the purpose of "other states insurance" in a workers' compensation policy?

The purpose of "other states insurance" in a workers' compensation policy is to provide coverage for exposures that develop in other states during the policy period. This provision is particularly important for employers who have employees that may work in multiple states or travel across state lines.

When an employer's operations extend beyond their home state, there may be specific workers’ compensation laws and regulations that apply in those other states. "Other states insurance" ensures that if an employee is injured while working in a state that is not the home state, the employer is still protected under the workers’ compensation policy. This coverage helps guarantee compliance with various state laws and provides peace of mind for both employers and employees, ensuring that employees receive the necessary benefits for workplace injuries regardless of where they occur.

The other options do not accurately reflect the primary function of "other states insurance." Reducing premiums or increasing benefits does not pertain to the specific purpose of this coverage, nor does it cover only specific types of injuries outside the home state, which would be contrary to the overarching goal of ensuring comprehensive coverage for all relevant work-related incidents across different states.