Workers’ compensation insurance in Westchester County and New York State is a crucial aspect of ensuring the well-being of employees in the state with the city that never sleeps.
Is workers’ compensation required in New York?
Businesses in New York, including Westchester County, must have worker’s Compensation coverage for all employees. There are very few exemptions to this requirement. Most employers including those with part-time employees and family members employed by the company must comply with the workers’ compensation requirement. Get a New York workers’ compensation insurance quote today.
Workers’ Comp in NY: What You Need to Know
As we mentioned before, workers’ compensation is a requirement for all New York Businesses. But not all policies are the same. You’ll want to be aware of the different types of policies available in the state, which may include unique coverages and programs that could help your business.
Workers’ Compensation in NY: What is Covered?
Overall, workers’ compensation insurance in New York provides comprehensive coverage for work-related injuries or illnesses, ensuring that employees receive the necessary medical care, cash benefits, and travel expenses to recover fully and get back to work.
- Medical Benefits: Workers’ compensation insurance covers all health care related to your injury, including hospitalization, doctor visits, prescription drugs, and rehabilitation. This coverage ensures that you receive the necessary medical care to recover fully and get back to work.
- Cash Benefits: If you are unable to work due to your injury, workers’ compensation insurance in New York provides cash benefits of two-thirds your average weekly wage, up to a maximum. These benefits ensure that you can pay your bills and support yourself while you recover from your injury.
- Travel Expenses: In addition to medical and cash benefits, workers’ compensation insurance also covers travel expenses to and from health care appointments. This coverage ensures that you can attend all necessary appointments and receive the care you need to recover fully.
Workers’ Compensation In NY: Who Needs It
In Westchester County and all of New York State, workers’ compensation insurance is mandatory for all for-profit businesses and most non-profit organizations with employees. According to state regulations, an employee is defined as someone who works under the direction, supervision, and control of an employer on or off their premises. This includes both full-time and part-time employees, as well as temporary, seasonal, casual, leased, borrowed, and even unpaid workers. Essentially, if a person is working for an employer and meets the state’s definition of an employee, the employer is required to provide workers’ compensation insurance.
Who Is Exempt From Workers’ Compensation in New York
While workers’ compensation insurance is mandatory for most for-profit businesses and non-profit organizations in New York, there are some exceptions to the rule. The following situations fall under workers’ compensation exemptions from New York’s laws:
- Sole proprietors, partnerships under the laws of New York State, and one- or two-person owned companies with those individuals owning all the stock and holding offices of the corporation. In each case, there cannot be any employees, including leased, borrowed, part-time, unpaid volunteers (including family members), or independent contractors.
Nonprofit organizations also have exceptions, including:
- Nonprofit entities (under IRS rules) that do not have compensated individuals, except clergy or teachers, providing services
New York Required Postings
To ensure that all employees are informed about their rights and protections under workers’ compensation insurance, it’s important to post notices in a conspicuous location that is frequently visited by employees, such as the break room, lunchroom, or time clock. If you have multiple locations, be sure to post the notices at each location.
The notices that must be posted include:
Workers’ Compensation Insurance Notice of Compliance (Form C-105) in both English and Spanish. This notice informs employees that their employer has workers’ compensation insurance coverage and provides information on how to file a claim if they are injured on the job.
If you have any questions about workers’ compensation insurance, contact Colangelo Group or your licensed New York insurance agent.
Workers’ Compensation Insurance NY Cost
The rates for Workers’ Compensation in NY are not fixed as they vary based on several factors that are unique to each business.
New York workers’ compensation rates are determined by the class code or industry. The New York Workers’ Compensation Board is responsible for establishing rates in New York. This Board, which is a non-profit and unincorporated association of insurance carriers, collects data on loss, premium, and payroll, and provides recommendations for rates. Some factors that affect rates are:
- Claims History
How Are Premiums Calculated
Premiums for workers’ compensation insurance are calculated based on the industry classification or class code assigned to each business, which has a corresponding base rate. To estimate the insurance costs, a formula can be used which takes into account the base rate and the payroll:
Premium = Base Rate x (Payroll/100)
New York Compensation Board Announces 2023 Assessment Rates:
. For the calendar year 2023, the rate shall be 9.8% of the standard premium or premium equivalent.
Tips To Decrease Cost Of Workers’ Comp In New York
As an employer, the cost of Workers’ Compensation insurance can be a significant expense. However, there are several tips that can help you reduce these costs:
- Obtain quotes from multiple insurance carriers through your agent several months before you need the policy.
- Ensure that the underwriter is accurately classifying your employees. Attempting to misclassify employees to obtain a lower initial rate can result in retroactive charges, penalties, and even felony prosecution for misclassification.
- Explore alternative plans, such as deductibles, premium credits, and safety programs, with your insurer.
- Research the insurer’s claims handling practices, as a carrier that automatically pays every claim or denies many claims can impact your premium in the future.
- Collect New York State workers’ compensation insurance certificates from all subcontractors providing services to your business. Insurance carriers may charge general contractors workers’ compensation insurance premiums for all subcontractors not covered by their own New York State workers’ compensation insurance policies.
Buy Workers’ Compensation Insurance Today by completing our online quote form or calling us at (914)633-3333.