Foreign Voluntary Workers’ Compensation: Closing the Coverage Gap for Cross-Border Teams

Author, Sam Brown, Vice President, Human Services Group, Rancho Mesa Insurance Services, Inc.

In San Diego County, with its diverse workforce and cross border business activities, employers increasingly consider hiring talent from nearby Tijuana or have employees travel into Mexico for business purposes. In other scenarios, American employees decide to move and work remotely from Mexico or commit to a daily commute into the US.

While Mexico-based employees working remotely and cross-border commuters bring valuable skills to San Diego’s employers, North American workers’ compensation policies do not offer protection from unique international exposures or the services your employees need should an injury occur outside the United States. Fortunately, an insurance product is available to specifically address this international exposure: Foreign Voluntary Workers’ Compensation (FVWC) insurance.

Which employers should consider FVWC?

The coverage is considered voluntary because it is not required by law to purchase. Companies with employees who travel or commute to foreign countries should consider FVWC to cover the following:

• Employees on short-term business trips across the US border.

• Employees on long-term international assignments.

• Hybrid employees working remotely with some commuting into the United States.

What benefits does FVWC provide injured workers?

• Medical expenses and lost wages: Covers medical care, lost income, and disability benefits for injuries or illnesses sustained on the job in a foreign country.

• Repatriation: Pays for the cost of transporting an ill or injured employee to their home country for treatment, or to a suitable medical facility, and can also cover the return of remains if an employee dies.

• Extended coverage: Can include 24-hour coverage, endemic diseases (like malaria), and acts of war or terrorism, which are often excluded by standard policies.

• Employer liability protection: Protects the business from potential lawsuits if an employee sues for a work-related injury that occurs abroad.

• Facilitates care: Many policies provide a point of contact to help employees navigate the foreign healthcare system, which can be a significant concern for those in unfamiliar countries

San Diego employers with Mexico-based employees or operations outside the United States should learn if the existing workers’ compensation insurance policy will cover international incidents. If not, employers would be wise to explore foreign voluntary worker’s compensation insurance. Please contact me at sbrown@ranchomesa.com or (619) 937-0175 to discuss if this coverage is a fit for your organization.

Doubling Down on Safety in California’s Janitorial Industry

Author, Jeremy Hoolihan, Partner, Rancho Mesa Insurance Services, Inc.

For those that run janitorial businesses in California, you have probably heard the news that workers’ compensation rates are on the rise. Insurance Commissioner Lara recently approved a recommended rate increase of 8.7% on average across all classification codes effective September 1st 2025.  For the janitorial industry specifically, the pure premium increase was 11%. These increases will result in higher costs for employers across the board.

In the janitorial industry, where the work is physically demanding and full of potential hazards, these rate increases hit especially hard. But the good news is, with a strong focus on workplace safety, you can help keep your claims down and your premiums more manageable.

The Most Common Claims

The janitorial industry has a unique set of risks that contribute to its workers’ compensation claims, including:

• Slips, Trips, and Falls: Wet floors, cluttered hallways, and stairs can lead to sprains, fractures, and plenty of lost days.

• Lifting and Overexertion: Heavy and improper lifting can cause painful back, shoulder, or knee injuries.

• Repetitive Motion Injuries: Tasks such as mopping, vacuuming, or scrubbing can result in repetitive strain injuries over time. Common injuries include carpal tunnel syndrome, tendonitis, and chronic back pain.

• Chemical Exposure: Regular use of cleaning agents like bleach, ammonia, and disinfectants can lead to rashes, eye irritation, or respiratory issues if workers are not properly protected.

• Cuts and Punctures: Broken glass and sharp edges can cause injuries. While often less severe, these incidents occur frequently and can result in infections.

 The Most Severe Claims

Some injuries may be less frequent but carry a much higher price tag. For example:

• Fall From Heights: Janitors who use ladders are at a higher risk of serious injuries such as fractures, head trauma, or spinal damage.

• Severe Back Injuries: Herniated discs or spinal injuries can sideline an employee for months or even end their career.

• Severe Chemical Exposure: Accidents with strong cleaning agents can cause permanent lung or eye damage.

These types of injuries not only impact your employee’s health, they also drive up insurance costs and are a big factor in the rate increases we are seeing.

Mitigating Common and Severe Claims

Maintaining a safe workplace is not just about compliance, it is also a financial strategy. Fewer claims and losses over time will help you control your premiums even in a rising rate environment.

A few key risk mitigation strategies include:

• Prevent Slips and Falls: Place “wet floor” signs immediately when mopping. Use slip resistant shoes and ensure adequate floor mats are in place.

• Teach Smart Lifting: Provide training on proper body mechanics and lifting methods.  Use carts or dollies instead of manual lifting whenever possible. Encourage team lifting for heavy or bulky objects.

• Reduce Repetitive Strain: Rotate tasks to reduce strains. Provide ergonomic tools such as lightweight mops, backpack vacuums, and adjustable handles.

• Protect Against Chemicals: Train employees on safe handling, storage, and mixing of cleaning agents. Make PPE (i.e., gloves, safety glasses, and masks) non-negotiable. And maintain clear Safety Data Sheets (SDS) for all products.

• Stay Sharp About Sharps: Provide puncture resistant gloves and safe disposal containers for broken glass or needles. Also train employees on safe handling procedures.

Develop a workplace safety program. Rancho Mesa’s SafetyOne™ platform is designed to administer an effective workplace safety program to ensure employees are getting the proper safety training, identifying hazards before an incident occurs, and investigating incidents to ensure they don’t happen in the future.

Final Takeaway

The reality is that workers’ compensation rates are firming in California. Your employees are your most valuable assets. By paying close attention to the most common risks and putting preventive measures in place, you will not only keep those employees safe but will also help minimize your frequency and severity of claims. The result will be fewer disruptions, lower expenses, and a more efficient business.