Multi-State Employer Insurance

With the rising popularity of remote employment opportunities, more and more businesses are now operating in multiple states. While these unique job opportunities provide many benefits to both employers and employees, it makes it harder to ensure proper insurance coverage is implemented.

 

Since every state has their own unique regulations, insurance requirements and tax laws, it’s important to have coverage that keeps your business compliant, while also protecting your business and staff. That’s where multi-state employer insurance comes in. 

Jump To: 

• Why is Multi-State Employer Insurance Important? 

• Multi-State Employer Health Insurance Options

• Business Insurance for Multi-State Employers

• FAQs

• Get Multi-State Employer Insurance Today!

Why is Multi-State Employer Insurance Important?

Insurance for multi-state employers is important for the same reason as it is for any other business—to protect against damaging claims, and to ensure employee well-being. The difference for multi-state employees is that it can be a challenge to keep up with all of the varying rules and regulations that each individual state has. For example, each state has different regulations in regards to: 

 

• Health Insurance Requirements: While the ACA states the only business with 50 or more full-time equivalent employees must offer health insurance, some states have their own mandates relating to specific benefits. For example, California requires businesses with 100 or more employees to cover infertility treatment. Additionally, Massachusetts has its own health care mandate law that preceded the ACA, creating their own set of compliance requirements. 
• Workers’ Compensation Laws: Each state has different regulations regarding workers’ compensation. For instance, Texas is unique in the fact that they’re the only state that doesn’t require businesses to provide workers compensation benefits. Another example includes states like Washington, North Dakota, Ohio and Wyoming. These states have monopolistic state funds, meaning businesses must get workers’ comp policies from their state instead of from a private insurer. 
• Payroll Taxes and Insurance Cost: Certain states make employers pay specific employment-related taxes, such as State Unemployment Insurance (SUI) taxes. These taxes can impact the insurance rates that businesses receive, especially in relation to the cost of workers’ compensation policies. 
• Liability Risks: Multi-state employers must have commercial insurance policies that cover them across multiple states and jurisdictions to protect against liability claims.

Multi-State Employer Health Insurance Options

There are many factors to consider when providing health insurance to employees in multiple states, such as compliance and access to quality providers. When offering group health coverage across multiple states, businesses have some different options:

National Group Health Insurance Plans

National group health plans are also referred to as multi-state plans as they provide healthcare access to employees all over the United States. Plans covering the entire country make things easy on employers, since they won’t have to manage a bunch of separate state plans, or track varying rules and underwriting guidelines.

 

The one downside of national plans is that they aren’t offered by a ton of different health insurance companies. In other words, there is a limited number of multi-state health plan options available to choose from. 

State Health Insurance Plans

A second option is to provide separate state insurance plans for employees based on their location. State plans are another great insurance option for multi-state employers as they provide coverage that’s more tailored to employee’s geographic location and preferences.

 

Unlike national plans though, with separate state plans, it’s crucial to pay close attention to varying laws and regulations. Additionally, when selecting multiple state plans it’s important to make sure they provide employees with enough coverage. An easy way to do this is by checking the network of providers under each state plan. 

Self-Funded Plans

Also known as self-insured health insurance, this option allows employers to create and manage their own group health plan. Unlike traditional health insurance plans, with self-funded plans the employer incurs all of the financial risk such as handling claims, administrative costs and more.

 

These plans can help businesses who generally have a low number of employee-claims save money, as claims are only paid as they arise. Additionally, stop-loss insurance is commonly purchased with these plans to cover the risk of claims exceeding expectations. 

Level-Funded Plans 

A unique option offering a mix between traditional group health plans and self-funded plans. With level-funded plans, employers pay a fixed monthly fee which covers administrative fees, stop-loss insurance and funding for claims. With these plans, businesses can also save money in the form of an end-of-year refund if claims are less than anticipated. 

HRAs (Health Reimbursement Arrangements)

Another alternative to traditional health insurance plans are health reimbursement arrangements, also known as HRAs. With HRAs, employers decide on a monthly allowance which is used to reimburse employees for qualified health expenses like premium costs and certain out-of-pocket costs.

 

Additionally, these reimbursements are tax-free for employees and tax-deductible for employers. HRAs are also tailored to businesses of all sizes— there are Individual Coverage HRAs (ICHRAs) which are for businesses of any size, and Qualified Small Employer HRAs (QSEHRA), which are for businesses with less than 50 employees. 

 

When deciding on which type of group insurance plan is best for your business, it’s key to consider your budget, employee preferences, employee location, and more. To ensure that you end up selecting a coverage that satisfies everyone on your team, work with EZ.Insure! 

 

Business Insurance for Multi-State Employers 

It’s important to protect both your employees and your business itself against the multitude of risks that may occur. For businesses operating with employees in multiple states, getting a commercial insurance plan tailored to your needs is crucial to avoid expensive and damaging lawsuits. While not all companies will need every type of coverage outlined, here is a list of the most common business insurance policies for multi-state employers: 

Workers’ Compensation Insurance

Required by law in all states except for Texas, workers’ compensation provides employees with  funds to pay for medical bills and lost wages if they are injured on the job. When evaluating your workers’ comp options it’s important to consider that coverage exemptions, policy limits, employer liability, and out-of-state/remote worker rules vary from state to state. In general, multi-state employers must either find a policy covering employees in multiple states, or purchase separate policies for each state’s workers. 

General Liability Insurance

This type of insurance protects businesses against claims involving third-party bodily or property damage, as well as advertising damage. General liability insurance is especially important for mult-state employers as operating in more than one state increases the chance of lawsuits. It’s also important to keep in mind that different states have different levels of liability risk, which could increase costs. 

Cyber Liability Insurance

When a business has employees in multiple locations, the chances of cyber threats increases. Cyber liability insurance works by protecting companies against data breaches, ransomware attacks, hacking, and compliance issues. If one of these events occurs, this policy helps by paying for data retrieval, client alerts, legal fees and more. 

Employment Practices Liability Insurance (EPLI)

EPLI protects business against lawsuits relating to wrongful termination, discrimination, harassment, and wage disputes. Since every state has its own set of laws relating to employment, it’s important to ensure that your policy complies with each set of laws where your employees are located. 

Commercial Auto Insurance

Commercial auto insurance is legally required for businesses using vehicles in their day-to-day operations (except in New Hampshire). Standard policies cover employees in multiple states or employees who regularly drive between state lines, as long as they are within the US. Coverage protects against claims relating to bodily and property damage resulting from an automotive accident. 

Business Interruption Insurance

If a business’s headquarters is forced to shut down temporarily due to events like fires, storms, or vandalism, employees in other states could also be affected. Business interruption insurance works by providing companies with funds to cover relocation, employee wages, taxes and more, so they can get back on their feet quickly. 

FAQs

How do I provide health insurance to employees across multiple states? 

Multi-state employers have some different options when it comes to health insurance. Two of the main options are either offering a national health insurance plan that covers employees all over the United States, or offering different health plans for each state that employees reside in. Other less traditional options include level-funded plans, self-funded plans, and HRAs. 

 

Are workers’ compensation requirements the same in every state? 

No, each state has its own set of workers’ comp laws and requirements affecting coverage, and benefits. For multi-state state employers it’s crucial to understand and comply with the laws in each state where employees work to avoid fines and penalties. 

 

What’s the best way to ensure compliance across states with varying insurance laws?

Remaining compliant when providing insurance to employees across multiple states requires a proactive approach. This includes staying informed by paying attention to each state’s laws, and consulting with a legal expert. Additionally, some companies develop policies that accommodate the strictest state laws, to remain compliant across all locations. 

Get Multi-State Employer Insurance Today with EZ.Insure!

Running a business with employees in multiple states has its challenges, but getting insured shouldn’t be one! EZ.Insure is your all-in-one destination for both group health insurance and business insurance policies. 

 

Our platform offers access to free, no-obligations quotes, side-by-side plan comparisons and assistance from our licenses insurance professionals, making it easy to get coverage that checks all the boxes.

 

To get started, simply click the button below to receive a free, no-obligation quote, or give us a call at 844-770-0876!