Workers Compensation Insurance

Protecting all of the great work you do

As a New York business owner, your employees are one of your most valuable assets. If one of them is injured and cannot work, it can disrupt your entire organization. If the injury is workplace-related, you may also be liable for their medical costs. With workers compensation insurance, workplace injury expenses can be covered to help your employee and your business recover.

Workers compensation insurance has a long history in the United States. Developed in 1949, it exists to create a no-fault situation for accidental workplace injury and illness, helping to pay medical costs and salary to injured workers, while removing the company’s liability. Many states, including New York, require businesses to purchase this important protection.

New York Legal Requirements

Businesses in NY that have employees are required to have workers compensation coverage.

The only businesses that are exempt fall into a few categories:

Individually-owned and operated businesses with no employees or volunteers;

Partnerships with no employees or volunteers;

One- or two-person corporations that are completely owned by these individuals who are also corporate officers; there must be no employees or volunteers.

For the purpose of workers compensation coverage, an employee needs coverage whether they are full-time, part time, borrowed, or volunteers. Subcontractors must also have coverage.

NY businesses are also required to post notice of their coverage in a conspicuous place for all employees. It must include the name and contact information for the insurance carrier.

Call us or set up an appointment to learn more about what makes each member of our team a dynamic resource for your New York or national insurance needs.

Workers Compensation Insurance Coverage

When an employee is injured, they incur not only medical costs, but are missing work. If you do not pay them, they lose their wages; if you do pay them, your company may not be able to afford a temporary replacement, hurting your finances and productivity. Workers compensation seeks to remedy the situation for both the employee and your company.

Your coverage can include:

Medical costs associated with the workplace injury or illness
The employee’s lost wages
Rehabilitation and retraining

This coverage allows your employee to seek the medical care they need, without worry about lost wages. It also allows you the funds to hire help as needed until your employee can return.

Workers Compensation Costs

Workers compensation premium charges are determined based on several factors. For each employee, a risk category must be determined based on their job function. With this information and payroll data, the cost for each employee is determined. Employees performing high-risk tasks where they are more likely to be injured will cost more than their low-risk counterparts.

Since a safe workplace can reduce workers compensation claims, discounts are often available for companies that follow safety protocols, institute employee training programs, and are drug-free. Your agent can help you find any applicable discounts for your business.

Each year, an audit will be performed. At this time, you will review your policy with an auditor to determine if your previous year’s coverage was appropriate. Refunds and excess billing can occur to adjust your premiums to the appropriate amount. This is often a good time to make adjustments for your upcoming term.

Workers compensation insurance is important coverage for businesses with employees. By providing medical costs and wages to an injured employee, this insurance can help your New York business and your employee through the recovery period from a workplace injury.