In New York State, Workers Compensation Insurance is mandatory. NYS Workers Compensation law requires employers to obtain and keep current workers’ comp coverage for every employee. In an industry where illnesses and injuries are common, both employers and employees benefit from this type of coverage.
New York State’s Workers Comp Rules and Regulations
The Workers Compensation system is a form of no-fault insurance. Employees have a right to receive these benefits, but they do not have the right to sue an employer for an injury when they have the protection of this type of policy.
Workers comp insurance rules stipulate that the insurer assumes the employer’s statutory obligation to pay medical, indemnity and death benefits under the law to both full-time and part-time employees.
The cost of coverage must be entirely paid by the employer.
The policy may be purchased from a private insurance carrier, such as Contractors Insurance, the New York State Insurance Fund or secured through self-insurance.
Businesses must show proof of having a policy when they apply for business permits.
The cost of the premiums are determined according to the employer’s potential liability for claims based on individual experience, wages paid and type of industry.
Employees who are injured in work-related accidents or who suffer from occupational diseases may be entitled to wage replacement benefits, medical treatment and/or vocational rehabilitation.
According to NYS Workers Compensation Law, all New York contractors must:
- Obtain and maintain a current workers comp insurance policy
- Or, obtain self-insurance for worker’s comp
- Or, be legally exempt from the statewide requirement
If an employee elects to claim benefits, employers are not required to keep a worker’s job open, but in some cases the Family and Medical Leave Act may protect a worker’s job.
Posting a Workers Comp Policy Notice
Employers must post a notice of Workers Compensation Insurance coverage in a conspicuous spot in their place of business. It must include the name, address and phone number of the insurer as well as your policy number. In most cases, you can receive this notice from your insurance carrier. Violations may result in a fine of up to $250 per infraction.
Possible Exemptions for NYS Workers Compensation Law
Under NYS Workers Compensation Law, there are a few situations where a contractor may be exempt from providing coverage, including:
- A sole-proprietorship that is not incorporated and has no employees, no leased employees, no borrowed employees, no part-time employees, no unpaid volunteers and no subcontractors.
- A partnership that does not have employees of any type.
- A one-or-two person-owned corporation in which those individuals own all of the stock and hold all of the corporation’s offices. It also may not have any employees, leased employees, borrowed employees, part-time employees, unpaid volunteers or subcontractors.
Workers Compensation Insurance provides reliable protection to New York contractors. If you are interested in receiving a quote for a policy, contact Contractors Insurance today.