State program helps companies remain competitive

By Kalea Hall | August 25, 2016 at 12:05a.m.

YOUNGSTOWN

The state has developed a program to help employers that cross state borders with compensation coverage.

Ohio’s Bureau of Workers’ Compensation created its “Other States Coverage” program to provide another coverage option to prevent workers’ compensation coverage gaps; protect employers from penalties and stop-work orders in other states; and provide an affordable rate.

“It has helped tremendously because now we can go back to Pennsylvania and be competitive again,” said Sam Boak of Boak & Sons Inc. in Austintown.

Boak & Sons, which specializes in residential, commercial and industrial roofing, vinyl and aluminum siding, replacement windows and insulation, was one of the companies that asked the state to start such a program.

Pennsylvania “permits employers in other states, who are insured in those states, but who are not otherwise insured with regard to its Pennsylvania liability, to apply to be considered covered for the purposes of its workers’ compensation liability under the PA WC Act by filing a certificate with the director of the BWC and demonstrating that it meets specified requirements,” a response from the Pennsylvania’s Department of Labor and Industry’s press office reads.

This made it hard for companies such as Boak & Sons to compete in the bordering state of Pennsylvania.

“We reduced the amount of work [there],” Boak said. “Therefore, we had to seek other jobs to keep our employees busy.”

BWC started to work with United States Insurance Services and Zurich Insurance in March “to offer this optional coverage to employers who may face financial exposure while working outside the state of Ohio,” according to the BWC’s website.

“It has just really streamlined their ability to get coverage,” said Kendra DePaul, Other States Coverage manager for the BWC.

A total of 152 companies were enrolled in the program, as of Tuesday. In Mahoning County, 12 companies are enrolled; in Trumbull County, eight companies are enrolled; and in Columbiana County, five companies are enrolled.

The program comes with these eligibility requirements: have active coverage with BWC; have no coverage lapses in the past 12 months and no past-due balances; report two-thirds of total payroll in Ohio for all related business operations; and have demonstrated a consistent business performance and a commitment to workplace safety.

For information, go to: www.bwc.ohio.gov/employer/services/OtherStatesCoverage.asp.