What should Omicron Corporation do in relation to workers compensation insurance for expanding into new states?

The most appropriate action for Omicron Corporation, as it expands into new states, is to add Utah, Arizona, and New Mexico in Item 3.C of its workers' compensation policy and advise the insurer immediately. This is essential because workers' compensation laws and requirements vary by state, and any operation in a new state typically necessitates coverage under that state's specific regulations.

By updating the policy to include these states, the corporation ensures it is in compliance with local workers' compensation laws and protects its employees accordingly. It also allows the insurer to assess the risks and adjust the coverage and rates based on the company’s operations in those states. Timely communication with the insurer is crucial to avoid lapses in coverage that could expose the corporation to significant liabilities if employees in those states are injured on the job.

Taking proactive steps is key; waiting until after the expansion to notify the insurer could lead to complications, including potential non-compliance with state laws. Excluding the states from the policy could expose the company to risks if an employee is injured while working there without coverage. Seeking separate insurance for each state complicates the administration of insurance policies and may result in gaps in coverage or increased costs.

Therefore, updating the policy comprehensively and promptly is