Does Workers’ Compensation Cover Employees Traveling Internationally?
As business travel continues to expand across the globe, many employers assume their workers’ compensation policy automatically protects employees wherever work takes them.
The reality is more complicated.
While workers’ compensation may provide coverage for some employees traveling internationally, the extent of that protection depends on several factors, including the policy, the employee’s work assignment, and the country where the injury or illness occurs.
Before sending employees abroad, it’s important to understand where your coverage may begin—and where gaps could exist.
What Does Domestic Workers’ Compensation Typically Cover?
Workers’ compensation is designed to provide benefits when an employee suffers a work-related injury or illness. In general, it may cover:
- Medical expenses
- Lost wages
- Rehabilitation costs
- Disability benefits
However, once an employee leaves the United States, determining what is covered can become much more complex.
International Business Travel Can Create Coverage Questions
For employees traveling overseas on short-term business trips, workers’ compensation may apply under certain circumstances. However, employers should consider several practical challenges.
For example:
- Will my domestic workers comp policy cover my employees traveling internationally?
- Are my Non-US employees properly covered for workers compensation when they leave their home country and travel internationally?
- Will medical providers accept your insurance?
- Will the employee need to pay for treatment upfront?
- How will emergency medical transportation be handled?
- What happens if specialized care or evacuation is needed?
Even when workers’ compensation benefits are compensable, they do not address many of the logistical and financial challenges that can arise during an international medical emergency.
Long-Term International Assignments May Require Additional Protection
When employees are stationed overseas for extended periods or regularly work outside the United States, employers should carefully review their insurance program.
Coverage requirements can vary based on the assignment, state laws, compulsory requirements in other countries, the location, and the employer’s existing policies. International operations often require additional planning to ensure employees are safe and have access to appropriate medical care and assistance while abroad.
Government Contractors Have Additional Requirements
For companies performing qualifying work outside the United States under U.S. government contracts, additional insurance is required by U.S. Federally Law.
The Defense Base Act (DBA) requires employers to provide DBA insurance for covered employees working overseas on qualifying government contracts. Standard workers’ compensation policies generally do not satisfy this federal requirement.
Understanding these obligations is essential for maintaining compliance and protecting employees working abroad.
Why Employers Often Add International Travel Coverage
Organizations that are mindful of “duty of care” obligations and strive to implement “best business practices” when traveling internationally will often supplement their Foreign Workers Comp policy with Group Business Travel Accident coverage to further mitigate risk and “gaps” in coverage. Group Business Travel Accident insurance is designed specifically for employees traveling overseas, but it can also be used to protect against most domestic travel exposures that present themselves and are not covered by traditional medical insurance policies.
Depending on the plan, these solutions may provide valuable benefits such as:
- Emergency medical coverage
- Medical evacuation
- Repatriation services
- 24/7 travel assistance
- Coordination of medical care
- War and terrorism coverage
- Additional travel-related support services
These protections can help employees receive care more quickly while reducing administrative challenges for employers.
Prepare Before Your Employees Travel
International travel presents a unique set of risks for both employees and employers. Before your team travels abroad, review your insurance program to determine whether your organization may benefit from workers’ compensation, international travel medical insurance, Foreign General Liability, DBA coverage, or other specialized international solutions.
Global Underwriters helps organizations navigate the complexities of international insurance. Contact us or your insurance professional to discuss the right protection for your employees and your business before the next trip.
