I once had a contractor (OKLA client) hire a TN subcontractor to do some painting work in MO. They let them start the job without WC insurance and the sub never obtained the insurance. The question was what rate will apply at audit for our client since each state has different rates. After emailing the underwriter we received this answer from their audit department:
The WC Rules (as found in the Scopes Manual) are:
- The payroll of employees who are hired for a specific job project are assigned to the state in which the job is located.
- Payroll of employees who travel constantly across state lines but return home each night are assigned to their headquarters state
- If employees are assigned to a job that is located in a state other than their headquarters' state, their payroll shall be assigned to the highest rated of either the state in which the job is located or the headquarters' state.
For Gen. Liability, they are assigned based on the location of the job
Since these multi-state issues do come up from time to time it is good to have a good insurance company that deals in multi-state exposures to help out on these situations.