If you are a New York contractor whose Workers’ Compensation policy lists Item 3A: New York, you might assume you are fully protected no matter where your projects take you. But what happens when opportunities arise across the Hudson or in Connecticut—jobs lasting a few weeks or even a few months? Many contractors don’t realize that crossing state lines without proper coverage can expose them to denied claims, uncovered medical bills, statutory penalties, and lawsuits.
This article breaks down what really happens when a New York–based contractor takes work in New Jersey or Connecticut, what your policy does (and does not) cover, how employee location factors in, and what happens if an injured worker receives treatment in NY versus NJ. Understanding these issues is essential before mobilizing crews to another state.
1. What Item 3A “New York” Coverage Actually Means
Workers Compensation policies list the states where coverage is explicitly provided under Item 3A. When your policy only lists New York, it guarantees that:
- New York claim laws apply
- NY hospitals and providers are covered
- NY workers are protected under NY benefit schedules
- NY jurisdiction is triggered automatically
But here’s the catch: Item 3A does NOT automatically extend your coverage to New Jersey, Connecticut, or any other state.
Most policies also include Item 3C (Other States Coverage)—but this section has limitations. It is meant for incidental, temporary, or unknown-in-advance out-of-state exposures. It is not designed to cover planned multi-month projects in NJ or CT.
2. Taking Jobs in New Jersey or Connecticut: Are You Covered?
The answer depends on one thing:
Is your work in NJ or CT temporary or regular and ongoing?
Scenario A: You take a job in NJ or CT for a few days (purely temporary)
If your Workers Compensation policy includes the state under Item 3C (which most do), then you are typically protected as long as the job is short-term and not anticipated at policy inception.
Item 3C coverage often applies when:
- The job is brief
- You do not maintain an office, yard, or permanent crew in that state
- Work outside NY is occasional, unexpected, or sporadic
In this case, the policy may pay benefits according to that state’s WC laws, and you usually remain compliant.
Scenario B: You take a job for several months in NJ or CT
This is where contractors get into trouble.
If you know in advance you will be operating in another state, most carriers require that:
- The additional state must be added to Item 3A, OR
- You must buy coverage through that state’s assigned risk pool, OR
- You must open a policy specifically for operations in that state
- You must register and comply with that state’s WC laws
Consequences of NOT adding the state:
- The carrier may deny the claim for out-of-state injuries
- You may be deemed “uninsured” in NJ or CT
- You could face state penalties and assessments
- You could be sued by the injured worker
- You could be forced to reimburse the state for all paid benefits
Many contractors falsely assume Item 3C protects them, but most insurers flat-out reject claims when the work was known in advance or lasted more than temporary duration.
3. What If Employees Live in NJ But Work for a NY Contractor?
Residency does not determine coverage.
Coverage follows:
- Where the employer is based
- Where the contract of hire was made
- Where the injury occurred
- Where substantial employment is performed
Even if a few employees live in New Jersey, if they were hired in New York and primarily work in New York, they’re considered New York employees.
But if they spend months on a New Jersey job site, New Jersey’s jurisdiction activates, and NJ may require you to have NJ WC coverage.
4. What Happens if a NY Resident Contractor Employee Gets Hurt on a NJ Job Site?
This is the scenario that leads to the most confusion—and the biggest claims problems.
A. They get hurt in New Jersey but receive care in a New York hospital
- New York hospitals will accept NY WC coverage.
- But the injury happened in New Jersey, so NJ jurisdiction applies.
- New Jersey may require that you had NJ WC coverage in place at the time of injury.
If you didn’t, you may be treated as:
- An uninsured employer under NJ law
- Liable for penalties and surcharges
- Responsible for reimbursing 100% of benefits paid to the worker
The claim may still be paid under NY benefits by your NY carrier, but the State of New Jersey may pursue you separately for not carrying NJ coverage.
B. They get hurt in NJ and end up in a New Jersey hospital
This is even more problematic.
- New Jersey hospitals do not have to accept NY WC fee schedules.
- The NJ Department of Labor may step in and declare you non-compliant.
- Your NY carrier can deny the claim if NJ is not listed in 3A.
- NJ Uninsured Employer Funds may pay benefits—and then sue you personally for reimbursement.
If you do not carry NJ WC coverage during a multi-month NJ project, the financial fallout can be devastating.
5. What About Connecticut?
Connecticut rules are similar to New Jersey:
- CT requires coverage if you have employees working there regularly or for extended periods.
- Out-of-state employers must register if they operate jobs lasting more than short-term durations.
- CT enforces heavy penalties for non-compliant employers.
If an injury occurs in CT:
- CT law often takes priority
- CT providers expect CT WC coverage
- A NY-only policy can result in uncovered claims
Simply put: Connecticut expects you to have Connecticut coverage if you are doing Connecticut work.
6. Why Contractors Get Confused
Most confusion comes from:
- Assumptions that “Workers Comp follows the worker”
- Agents who never ask about out-of-state exposures
- Contractors who assume Item 3C covers everything
- Not realizing that each state has independent jurisdiction over its own injuries
The key point:
Multi-month or planned out-of-state projects usually require that you add the state to Item 3A OR open a separate policy in that state.
Failing to do so can create a catastrophic uncovered claim.
7. How BGES Group Helps Contractors Avoid These Problems
BGES Group specializes in Workers Compensation for New York contractors—especially those who move between NY, NJ, and CT.
We help contractors by:
- Analyzing your real out-of-state exposure
- Determining whether NJ or CT must be added to Item 3A
- Securing proper multi-state WC coverage
- Avoiding claim denials, penalties, and uninsured employer status
- Recommending the safest and most affordable policy structure
- Getting you compliant with NJ and CT laws
- Making sure you are protected before an injury happens
We understand construction. We understand state-to-state WC conflicts. And we know how to keep contractors out of trouble.
Contact BGES Group
BGES Group – New York’s Contractor Insurance Specialists Workers Compensation • General Liability • Umbrella • Auto • Specialty Programs
📞 Call: (914) 806-5853 – Gary Wallach
📧 Email: bgesgroup@gmail.com
🌐 Website: www.bgesgroup.com
If you are planning to work in New Jersey, Connecticut, or any other state—even for a short period—contact us first. We will review your policy, explain your risks, and make sure your business is fully protected.