To be fair and consistent, Penn National Insurance follows industry standard guidelines in payroll assignments for nonconstruction and construction risks when operations are performed in two or more states.

Workers’ Compensation

Nonconstruction

Employees who travel from state to state, such as executives, salespersons, sales engineers, service representatives, supervisors and other employees who travel for administrative purposes:

If the employee lives in the same state as the headquarters from which business travel is conducted, the employee’s payroll is assigned to the headquarter's state.

If the employee lives in a state different from that in which the headquarters is located, but business travel is conducted from the headquarters, the employee is assigned to the headquarter's state.

If the employee is stationed in a state where there is no headquarters, and the employee conducts business travel from home for an out-of-state employer, the employee’s payroll shall be assigned to the employee’s state of domicile.

Construction

Guidelines for state assignment of the payroll of contracting risks when operations are performed in two or more states are as follows:

Jobbing Contractors: Employees of jobbing contractors, who are headquartered in one state, perform work in that state and in adjoining states constantly crossing state lines, are assigned to their headquarter's state. Example: Contractors such as electricians, plumbers, carpet layers, etc. A jobbing contractor is defined as a contractor whose employees are performing, servicing or repairing operations, as opposed to construction/erection operations.

Executive Supervisors: Employees who visit a job, but are not in direct charge of the job (employees such as project managers, construction executives, construction managers, construction superintendents and executive supervisors), are assigned to the risks headquarter's state, or to the state where their office is located if other than the headquarter's state.

Construction/Erection Operations: Construction employees working in a state other than the headquarter's state (excluding executive supervisors), are assigned to the state where the job is located.

Employees of a contracting risk-performing construction/erection operations (as opposed to the servicing/repair operations of a jobbing contractor) at a job site located in a state other than the headquarter's state are assigned to the state where the job is located because this is the state where the contractor’s exposure exists.

Specific Job Projects: Employees who are hired exclusively for a specific job project are assigned to the state in which the job is located.

General Liability

Construction

For General Liability exposure, we use the territory rate where the policyholder’s headquarters is located. If a job is located in a state other than where the policyholder is headquartered, we use the territory rate that generates the highest amount of payroll in the state where the job is located.