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As is so often the case, we have to say it depends!

There is no defined coverage territory in part one (workers compensation section) of the NCCI workers compensation policy. (While Pennsylvania uses a non-NCCI form, coverage is generally the same as the NCCI form in this area.) Benefits are payable based on the levels set by the laws of the states listed on the information page.

Part two (employers liability) states that EL insurance does not cover “bodily injury occurring outside the U.S., its territories or possessions, and Canada .” However, this exclusion “does not apply to bodily injury to a citizen or resident of the United States of America or Canada who is temporarily outside those countries . . .” (emphasis added).

In general, employees who are domiciled in the U.S., its territories or possessions, and Canada are entitled to workers compensation and employers liability coverage if they are outside that territory on temporary assignment. “Temporary” is not defined on the policy, so you should check with the carrier to determine how it chooses to interpret that word. You also should notify the insurance carrier providing the domestic workers compensation coverage of the temporary assignments.

If foreign nationals are being hired or U.S. citizens are being assigned permanently (or for longer than a temporary period) outside the territory, other arrangements should be made. The foreign country may provide or require some type of coverage that must be obtained there. Or an accident and health policy might be chosen. Some carriers also offer foreign workers compensation coverage that is excess to any benefits provided by required insurance. Such policies should be individually reviewed to determine how they would apply to the situation.

If you are using the domestic policy for protection, note that the employers liability section provides coverage for suits that are brought within the coverage territory. A foreign workers compensation and employers liability policy may fill this potential gap. Other coverages that may be necessary—regardless of whether the employees are permanently or temporarily working outside the domestic coverage territory—are for repatriation and endemic disease. Endemic diseases are those peculiar or restricted to certain regions or countries. Repatriation coverage provides additional funds, up to the coverage limit, for bringing an injured or deceased employee back to the United States .

You should check with the insurance carrier providing the domestic workers compensation coverage to be sure that any coverage you arrange dovetails properly with the domestic insurance.