November 30, 2021

Remember to get up-to-date information on your client’s other states operations

As your workers’ compensation partner, we’re committed to helping you stay informed and aware of any topics that may impact your Texas Mutual clients. For your clients who have an other states policy through our partner, Argo, it’s important their policy reflects every state in which they operate. This allows Argo to provide proof of your client’s coverage information, as required by each state’s insurance department, and prevent your client from receiving possible penalties or fines for failing to promptly report coverage.

We are encouraging agents to ask their Argo policyholders to list all the states in which they currently operate or plan to do business in, so that Argo can notify the insurance department in each state. Please let your Texas Mutual underwriter know if there are states not listed for workers’ comp specifically in your client's Argo insurance policy (item 3A of the information page).

Each state has their own workers’ comp coverage requirements. Insurers report coverage when they issue, non-renew or cancel coverage in each state. Some states like New York, for example, cross-reference employer payroll tax records with their workers’ comp coverage database to see which employers have coverage in their state. Penalties, like fines, can be imposed against employers who don’t have proof of coverage in a state they’re doing business. Insurance carriers are also subject to penalties for failing to promptly report coverage or changes in coverage. Some of the penalties enforced may be severe. Employers entering new states are most vulnerable to fines, particularly in New Hampshire, New York and Wisconsin. Industries that are most likely to have out-of-state operations include construction, oil and gas, transportation, temporary employment or professional employer organizations (PEOs).

Texas Mutual is committed to the success of our agents, including providing you with the resources you need to support our mutual clients. Thank you for all that you do to help your clients make the most of their policy. If you have any questions, please contact your Texas Mutual underwriter.