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US exposure
Workers’ compensation is the US system, set mainly by state law, that pays fixed benefits to employees injured or made ill at work without them having to sue. It matters for insurance because a UK employers’ liability policy is built for a different system and usually won’t satisfy a US state’s requirements on its own.
Part of: Public liability with US jurisdiction
In short
In the US, state statutes set the workers’ compensation framework for most employment; federal schemes cover narrower groups such as federal employees and longshore workers. The model pays set benefits for work injuries and limits what the worker can recover from the employer by suing. UK employers’ liability insurance is compulsory under the 1969 Act for injury sustained in Great Britain and is a liability policy, not a statutory benefits scheme. If you send staff to the US, hire there or set up a US entity, ask your broker about foreign voluntary workers’ compensation, US employer’s liability and, where needed, a locally admitted policy.
Last reviewed 7 October 2026 by the Apex commercial team.
There is no single US scheme. Cornell’s Legal Information Institute (LII) says state statutes establish the framework for most employment, while federal statutes are limited to federal employees and workers in some significant aspects of interstate commerce. The US Department of Labor tells people injured while working for private companies, or for state and local government, to contact their state workers’ compensation board.
LII describes the purpose in two parts. The laws give injured workers fixed monetary awards “in an attempt to eliminate the need for litigation”, and some laws also protect employers “by limiting the amount an injured employee can recover from an employer”. Benefits extend to dependants of workers killed in work-related accidents or illnesses.
The federal Longshore and Harbor Workers’ Compensation Act shows both halves of that bargain in statutory language. Section 904(b) says compensation “shall be payable irrespective of fault as a cause for the injury”. Section 905(a) makes the employer’s liability under the Act “exclusive and in place of all other liability” to the employee, with one important exception: if the employer fails to secure payment of compensation as the Act requires, the injured worker may choose to sue for damages instead.
| Scheme | Who it covers | Who runs it |
|---|---|---|
| State workers’ compensation laws | Most private-sector and state and local government employment | Each state’s workers’ compensation board or agency |
| Federal Employees’ Compensation Program | Non-military federal employees | US Department of Labor, Office of Workers’ Compensation Programs (OWCP) |
| Longshore and Harbor Workers’ Compensation Program | Specified employees of private maritime employers | OWCP |
| Black Lung and Energy Employees programmes | Coal miners; certain energy workers | OWCP |
This page does not set out any individual state’s rules. Whether a particular state’s law applies to someone you send there turns on that state’s own provisions, so take US advice for the states you work in.
UK employers’ liability (EL) and US workers’ compensation solve different problems, so one rarely stands in for the other.
The UK duty stops at the border. Section 1(1) of the Employers’ Liability (Compulsory Insurance) Act 1969 requires every employer carrying on business in Great Britain to insure against liability for bodily injury or disease sustained by employees arising out of and in the course of their employment in Great Britain. It adds that, except so far as regulations provide otherwise, this does not include injury or disease suffered or contracted outside Great Britain. The 1998 Regulations define a “relevant employee” by reference to UK residence, work on or from offshore installations, and presence in Great Britain for 14 days or more. None of the provisions we read extends the compulsory duty to work in the US.
EL is a liability policy. It pays when you are legally liable to an employee, usually after a claim alleging negligence or breach of statutory duty. US workers’ compensation is a statutory benefits system: the employer must secure payment of benefits under that state’s law, whatever caused the injury.
States care which insurer you use. New York’s Workers’ Compensation Board, for instance, tells employers based in other US states that New York must be listed in “Item 3C” of their workers’ compensation policy, and that an insurer not authorised in New York must file a consent to the Board’s jurisdiction. A UK EL certificate does neither.
Many UK EL wordings do extend to employees temporarily working abroad, but commonly only where the claim is brought in a UK court, or with the USA and Canada excluded or restricted. Check yours before anyone travels.
The examples below are illustrative, not real cases. They show where the question usually comes up.
There is no single product for every situation. The right mix depends on how many people go, for how long, where, and whether they are UK or US employees. The table shows what is commonly used, subject to the policy terms and the market available.
| Situation | Cover commonly considered | Points to check |
|---|---|---|
| UK staff on short US trips | UK EL with a temporary overseas extension, plus business travel cover | USA/Canada exclusions; whether claims must be brought in UK courts |
| UK staff working in the US for longer spells | Foreign voluntary workers’ compensation, often with employer’s liability, usually arranged from the UK or as part of an international package | Whether it pays benefits on the US state basis or the home-country basis; repatriation; which states it lists |
| US-hired employees | A locally admitted US workers’ compensation and employer’s liability policy, normally arranged through a US broker | That the insurer is authorised in the relevant state; certificates for clients |
| Contract demands evidence | A certificate (often on an ACORD 25) from the US policy | That the policy shown actually meets the contract’s wording |
The NAIC’s glossary describes employers’ liability as cover “for the legal liability of employers arising out of injuries to employees”, issued as an endorsement or as part of a statutory workers’ compensation policy. In practice, US contracts usually ask for both together.
Local US policies are usually arranged through US brokers with insurers authorised in the state concerned. Our page on surplus lines and non-admitted insurance explains the admitted and non-admitted distinction.
If this affects your business, these are the points a broker will ask about:
Speak to a broker
Cover for UK employers with US staff, placed by a named broker
Send us your current schedule, or tell us about the property if you are arranging cover for the first time. Or leave your number and a named broker will call you back, usually the same working day.
Apex Insurance Brokers is an independent insurance broker based in Bristol, established in 2009 and authorised and regulated by the Financial Conduct Authority. We are not tied to one insurer: we work with over 30 markets, including Lloyd’s syndicates through wholesale brokers, and every client has a named broker who handles the placement, mid-term changes, certificates for clients and the renewal.
It is a system, set mainly by state law, that gives employees injured or made ill at work fixed benefits without needing to sue. Benefits also go to dependants of workers killed at work. Some laws also limit what the employee can recover from the employer. Federal schemes cover narrower groups such as federal employees and longshore workers.
Sometimes, partly. Many UK EL wordings extend to employees temporarily abroad, but commonly with the USA and Canada excluded or restricted, or only for claims brought in UK courts. Even where it responds, it is a liability policy, not a US workers’ compensation policy, so it usually won’t satisfy a US state’s requirements or a US client’s contract.
It is a market term for cover that pays workers’ compensation-style benefits to employees working outside their home country, voluntarily rather than because a state law compels that policy. It is often sold with employer’s liability. Terms differ, so check which benefit basis it uses, which countries and states it covers, and whether it includes repatriation.
It can be. The federal Longshore Act, for example, makes the employer’s liability under the Act exclusive, but lets an injured worker sue for damages if the employer failed to secure payment of compensation. State laws set their own rules and exceptions, so take US advice for the states involved.
In most cases you should expect to. A US-based employee works under the law of their state, and you should expect it to require the employer to secure workers’ compensation. Speak to your broker before the start date: a local admitted policy usually has to be arranged through a US broker.
Apex arranges liability cover for UK businesses with people working in the US, working with US brokers where a local policy is needed. Tell us who is going and for how long. Or call 0117 325 0027.
Start your quote Call 0117 325 0027Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances. Cover is always subject to the insurer’s acceptance and the policy terms, and this page does not guarantee that cover will be available or on what terms.
