How does workers' comp work in New York?

New York can be a difficult state for employers to do business. The state is known for levying penalties for any non-compliance and the State Insurance Fund has a disproportionatley high percentage of all workers comp policies in the state because many insurance companies do not like the regulatory environment in the state. Aside from the fact that NY has unusualu requirments such as employer paid disability coverage attached to every workers comp policy, the state also has very complicated form requirment for business owners.

New York employers are advised to work with agencies like Workers Compensation Shop.com and to get workers compensation quotes from a minimum if 3 insurance companies to help ensure they find competitive rates for their business. Give us a call at 888-611-7467 if we can help.

Workers' Comp Rules & Information for New York

New York Insurance Directives Regarding Covid-19

NY imposes a 60 day moratorium on insurers cancelling, non-renewing, or conditionally renewing any policy issued to an individual or small business facing financial hardship as a result of the COVID-19 pandemic.  A “small business” is defined as a NY business, independently owned and operated, and employs 100 or fewer employees.  The NY DFS will issue an emergency regulation addressing implementation of this order.

Mandatory law in effect from 03/29/2020.

NY Orders Regarding All Insurance Related to Coronavirus

Executive Order 202.13 prohibits the cancellation/nonrenewal of “affected policyholders.” “Affected policyholders” are individuals or small businesses (i.e., a NY domiciled business that is independently owned and operated and employs 100 or fewer employees) experiencing financial hardship as a result of the COVID-19 pandemic. In furtherance of this order, the NY DFS added the following to its regulations (11 NYCRR 229): 1) If an “affected policyholder” cannot timely pay premium and can demonstrate financial hardship as a result of COVID-19, an insurer shall not impose late fees or report the policyholder to a credit reporting/debt collection agency; 2) Insurers shall allow an “affected policyholder” who could not timely pay premium due to COVID-19 (including a policyholder to whom the insurer issued a non-payment cancellation notice prior to March 29, 2020) and who can still demonstrate financial hardship as a result of COVID-19 to pay the overdue premium over a 12 month period; 3) “Financial hardship as a result of COVID-19” can be demonstrated by a written attestation from the policyholder; 4) By April 10, 2020, insurers must begin to provide notice with each insurance premium bill of the provisions of this regulation and a toll-free number that the policyholder may call to discuss billing and alternative payment options; 5) Insurers must notify producers and any TPAs that might be impacted by this regulation. Guidance: The policyholder notice may be delivered by e-mail. Insurers with websites should post the information on their websites as soon as possible. NY also encourages supplemental dissemination of the content of the Notice Obligations by other means, including social media. Insurers should maintain records of their communications with consumers, electronic or otherwise, for a period of time sufficient to satisfy recordkeeping requirements. If an Insurer obligated itself by contract with its principal, the insurer or insured, to retain records for a period of time, then such obligation, if legally enforceable, must be satisfied, subject to an alternative acceptable to the principal.

Mandatory order for all insurance companies and all lines of insurance. Effective 03/30/2020 until further notice.

New York Regulatory Authority and Rating Bureau

NYCIRB
200 E. 42 St.
New York, NY 10017
Phone: 212-697-3535

New York Other States Coverage notice

All out of state employers are now required to cover employees working in New York state with a workers comp policy showing New York in item 3A of the policy information page. Each policy's Other States Coverage (Item 3C) will no longer be acceptable for temporary or incidental employment in the state of NY. An out of state employer that sends an employee to New York for even 1 day is required to procure a New York workers compensation policy

Failure to comply with this requirement could subject employer to uninsured penalties from the state of NY in the event of a work-related injury. If you have any work in New York during the course of a policy term, you are required to notify your insurance company immediately so New York can be added to your policy under section 3A

Employers that expect to have any work in New York should ask their insurance carrier to add NY to the policy on an 'if any' basis until actual employee exposure develops.

Sole Proprietors, Partners, and Limited Liability companies who are either automatically covered or have elected coverage in their own state will need to complete an election of coverage form for New York if they want to be covered in NY. Corporate Officers who have rejected coverage, or are not subject to the law in their primary state may need to complete a rejection of coverage form for NY in order to be excluded from coverage in the state of New York.

State Insurance Fund- NYSIF

New York does not utilize NCCI for workers compensation administration. Instead, the state operates its own state fund program known as the State Insurance Fund (SIF). NYSIF is a non-profit agency. Unlike many state fund programs, NYSISIF competes with all other private insurance companies doing business in the state of New York.

NYS Class Code Searches and Rates

The New York State Insurance Department and NYCIRB do have a website available where employers and agents can search New York class codes and rates effective October 1st 2011. The NY Dept. of Insurance and NYCIRB do not permit 3rd party disbursement of information so comparisons between NY State Fund rates and the lowest rates offered by our insurance companies can not be illustrated here. To look up New York Class codes and current rates please visit:
• http://www.nycirb.org/
• Under the heading 'Department Services' choose 'Underwriting' and then choose 'Class Code Search.

More Programs and Options

We're always working with our insurance carriers to develop specialized programs for a broad range of industry class codes. Our Target Programs are designed to streamline the underwriting process and help ensure we offer the lowest rates available anywhere.

  • Contractors
  • Home Health Care
  • Janitorial Services
  • Transportation
  • Hospitality
  • And More
New York Legal Compliance

Accurate Payroll Records Requirment

All employers doing business in NY must keep accurate payroll records including the number of employees, class codes, wages, and injury reports for four years after each policy terminates. Failure to retain accurate records may create a penalty up to $1,000 for each 10 day period of non-compliance,

Intentional misrepresentation or attempts to conceal accurate payroll records, classification, or other relevent information for workers compensation may result in a $2,000 penalty foir every 10-day period of non-compliance. There are additional fines up to $50,000 for any criminal convictions.

Let Workers Compensation Shop.com help your business find workers comp insurance in New York.

What Does Workers' Compensation Insurance Cover?

...
Workers' comp coverage protects employees when injured. It makes good financial sense for both parties.
Injuries and accidents happen. A workers' comp policy is a no-fault system that pays for these accidents and claims. It's required by law in most states.
  • Loss of income for employees unable to perform job duties
  • Medical expenses for employees injured on the job
  • Retraining expenses for employees unable to return
  • Permanent injury or disability for lasting injuries
  • Survivor benefits if employees are killed on the job
Coverage does not protect employers from everything. Sometimes employees and employers can be negligent.
...
In some instances, workers' compensation coverage will not protect employers or employees from the legal liability resulting from a workplace injury.
  • Injuries resulting from a violation of the law
  • Incidents resulting from employees' use fo drugs or alcohol
  • Injuries that did not occur in connection with the job
  • Clear company policy violations
  • Injuries that did not occur in connection with the job

Workers' Comp Includes Employers Liability Insurance?

Employers liability insurance is an additional layer of coverage included as part of a workers' compensation insurance policy. Employers Liability is know as Part 2 of the policy. It adds two additional coverages for employers:

Employers Legal Liability and Legal Defense Costs

In todays world, there are a variety of reasons employees and third-parties sue employers for damages. Here a some common types covered by employers liability insurance:

Third Party Lawsuits

Your employee sues another party that may have contributed to the injury, In turn, the third party sues your business.

Consequential Bodily Injury

Another party or individual is injured while providing care for the injured employee.

Dual Capacity Legal Action

An employee files a claim but also attempts to sue the employer for being responsible in other ways outside of the employment relationship.

Loss of Consortium

A spouse sues for damages caused by the loss of companionship or relations.

Employers Liability coverage is not included with coverage in the four monopolistic states. Employers in these states can endorse this coverage onto their General Liability policy. That coverage is commonly know as Stop Gap Coverage.

Visit NCCI for more resources and information about workers' compensation class codes. Visit United States Department of Labor for more information about government agencies managing workers compensation insurance rates.

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