Do Remote Employees Need Workers’ Comp?
Usually, remote status alone does not remove an employee from workers’ compensation rules; the work state and local law matter.
Workers’ compensation requirements generally follow the state law that applies to the employment, not simply the location of company headquarters. A worker employed from home may therefore raise a state-coverage question even if the business has no office there. The NAIC advises businesses to check the state insurance department for the rules that fit their business.
List each employee’s actual work location and ask the relevant state agency or broker which state must be shown. Check the policy information page and other-states provisions; do not assume a policy listing only the employer’s headquarters state follows a remote employee everywhere. An employer may need to report changes when staff move across state lines. Tell the insurer before a relocation and ask whether the information page or a state endorsement must be updated.
Related Coverage
Sources
- Workers’ Compensation Insurance. National Association of Insurance Commissioners; Opening definition; mandatory coverage except Texas opt-in; exclusive remedy; monopolistic state funds; self-insurance note. Accessed 2026-09-25.
- Small Business Insurance. National Association of Insurance Commissioners; Typically covers medical expenses, rehabilitation costs and lost wages; check with your state insurance department; ask these questions / who qualifies as a covered employee (contractors, part-time staff, interns); payroll and type-of-work rating factors. Accessed 2026-09-25.
- State Workers’ Compensation Officials. U.S. Department of Labor; State and territory workers’ compensation contacts. Accessed 2026-09-25.
- Rule 5 - Policy and Endorsements. North Carolina Rate Bureau; Standard policy WC 00 00 00 C: Part One Workers Compensation; Part Two Employers Liability; Part Three Other States Insurance. Accessed 2026-09-25.
