New York’s State Workers’ Compensation Benefits
Benefits in New York are determined by the employer, independent insurance agent, and carrier offerings. State minimum limits for workers’ compensation are pretty universal.
|Workers’ compensation state minimum limits:|
|$100,000 per occurrence for bodily injury: This coverage is for any one employee|
|$100,000 per employee for bodily disease: This coverage is for any one employee|
|$500,000 policy limit for injury by bodily disease: This coverage is the total per policy term for all claims in a policy term|
Most independent insurance agents agree that you should always go with higher limits than the statutory minimum. $100,000 can be blown through pretty quickly when a decent-sized injury is involved, especially if cranes are a factor.
And the person responsible for the medical care after those limits are exhausted is you, the employer.
Workers Compensation Insurance For 1099 Contractors
Workers compensation insurance is a must-have for employers in fact, its the law in every state. While it may be clear that you have to carry a policy that covers all employees it can get confusing if you also use independent contractors, also known as 1099 contractors, in your business.
Since independent contractors are not direct employees of your company you may feel comfortable ignoring them when it comes to your workers compensation insurance policy. Thats not the best practice, and you may be setting yourself up for a big fine if youre inadvertently leaving someone off the policy that should in fact be covered.
Who Is An Employee Under New York Workers Compensation
Under the Workers Compensation Law, virtually all employers in New York State must provide workers compensation coverage for their employees.
For workers compensation insurance purposes, the term employee generally includes day labor, leased employees, borrowed employees, part-time employees, unpaid volunteers , and most subcontractors.
The factors that are considered to determine whether an individual is an employee within the meaning of the WCL and thus must be provided with workers compensation insurance coverage by the employer include:
Note: A workers compensation law judge determines whether a person is considered an employee at a hearing following a work related accident or illness.
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What Types Of Injuries Are Covered By New York Workers Comp
New York state law determines exactly what types of injuries are covered by workers comp insurance, but there are general guidelines that can help employers understand what typically qualifies for a workers comp claim.
The types of injuries typically covered by workers comp are:
- Injuries that are not the result of intentional self-harm or harm from drug use, alcohol use, or fighting
- Injuries that fall within the general course and scope of the workers employment, such as long-term occupational injuries, including back strain from repetitive motion
For more information about the workers comp claim process, visit our learning center.
How Is Workers’ Compensation Purchased In New York
There are three ways for New York employers to purchase a workers’ compensation insurance policy:
- You can buy a policy from a private insurance company. To compare quotes from top-rated insurance carriers, fill out Insureon’s free online application.
- You can buy a policy from the state fund.The New York State Insurance Fund is a competitive state fund that competes with private carriers and guarantees coverage, even for businesses declined elsewhere.
- You can apply for self-insurance. Your business must meet certain criteria to qualify for self-insurance. For example, you must have a workplace safety program.
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When Would I Get Cash Compensation
You are entitled to cash payments to compensate for loss of earnings if your injury or illness keeps you out of work for more than one week . If you are out of work for more than two weeks, you will receive cash payments beginning with the first day of your injury. If you are totally or partially disabled, and unable to work for more than seven days, you will receive cash benefits to be paid as long as you are unable to work. The exact amount of the cash benefit is based on your average weekly wage for the year preceding your accident, as well as your degree of disability.
Workers’ Compensation Insurance Companies In New York
New York has a number of different insurance companies that would be more than happy to write a workers’ compensation policy out for your business. The real deciding factor is what industry you are in. The riskier your business operations, the fewer carrier options you may have and the higher your premiums will be.
For example, if you own the Brooklyn Bridge’s building company and your employees are craning heavy sheets of steel, your workers’ compensation premium is one of the highest premiums in the business. Because your chances of filing a costly claim are high, the insurance companies charge more money to insure more risk.
On the other hand, if you own a Statue of Liberty t-shirt shop and your employees are folding clothes and greeting customers, then you’ll have one of the lowest workers’ compensation premiums on the market because your business just isn’t that risky.
All in all, the insurance company selection in your state is plentiful, though within your particular industry it may be a different story. It all depends on the insurance carrier’s appetite.
Some states are monopolistic in their ruling, meaning they require you to obtain insurance through their state programs and only their state programs. The four states that adopted this state-funded workers’ compensation program are as follows: North Dakota, Ohio, Washington, and Wyoming.
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What You Should Know About Workers Comp In New York
There is a long list of specific exemptions and inclusions in the NY law. The Board has the power to designate inclusions and exemptions. You should check with Workers Compensation Board if you have any questions about coverage. Exemptions include the below-listed employee groups.
- Unpaid volunteers
- Employees of foreign governments and Indian Tribes
- Teachers at charitable or non-profit institutions
- Ordained ministers, priests, rabbis, and other religious officers
Is Workers Compensation Insurance Required In New York
According to The New York Workers Compensation Board,
Workers Compensation Law requires that employers obtain and continuously keep in effect workers compensation coverage for all their employees.
The rule includes part-time employees and family members employed by the company.
Employers must have a workers compensation insurance policy. It can come from a private insurance carrier, the New York State Insurance Fund, or self-insurance. Businesses must show proof of the policy when getting business permits. Businesses may be exempt in very narrow circumstances. They are only exempt from these rules in that case. Self-insurance is rare.
This short video breaks down the basics of what you need to know
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Where To Get Workers Compensation Insurance In New York
In New York, workers compensation insurance can be purchased through an insurance company, an insurance broker or through the New York State Insurance Fund.
The New York State Insurance Fund is a not-for-profit agency of the state of New York. This fund must provide workers compensation insurance to any employer seeking coverage regardless of the employers type of business, safety record or business size.
Am I Eligible For Workers Compensation
In New York, any employee who is injured in an on-the-job accident is eligible for workers compensation. If you have been involved in a workplace accident, you will have to report the injury to your employer and file a claim with your employers workers comp insurance company.
Your eligibility is not affected by the circumstances of the accident, or whether or not you or your employer was at fault.
Your employers payment into the New York State Workers Compensation Fund means that you are eligible to claim this payment from the state fund through the workers comp insurance. The only situation in which you will not be entitled to workers comp after a workplace accident is if your injury resulted solely from your intoxication due to alcohol or drugs, or from the intent to injure yourself or someone else.
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What Are Your Agency’s Responsibilities
1. ASSIST you in obtaining immediate medical treatment or first aid.
2. PROVIDE you with a Claimant Information Packet which includes an Employee Claim form , HIPAA release form , information on obtaining representation and information regarding use of the pharmacy network.
3. REPORT the injury to NYSIF immediately, following Workers’ Compensation Law reporting requirements, by submitting the First Report of Injury to NYSIF and the WCB within 10 calendar days after the accident.
Note: The Workers’ Compensation Law requires your agency to file a report for any accident resulting in personal injury that causes a loss of time from regular duties beyond the working day or shift on which the accident occurred, or that requires medical treatment beyond first aid or more than two treatments by a doctor or persons rendering first aid. A report of an occupational disease should also be made by your agency through a submission of the FROI.
4. COMPLY with all requests for information by the WCB and NYSIF such as statements of your earnings before and after your accident , reports of the date of your return to work , or other reports that may be required to determine your work status following your injury.
5. SUBMIT the necessary transactions in a timely manner and in accordance with the Office of the State Comptroller procedures to initiate, change, or stop workers’ compensation leave or supplemental wage payments.
Who Is An Employee Under Workers Compensation Law
Again, well use Washington State as our example for determining who is an employee. Basically, anyone who receives something of value for time worked is considered an employee under the workers compensation insurance law, which is why the test for determining 1099 contractors is so strident. Because the IRS independent contractor law is not a valid determination for workers comp insurance the person in charge of this insurance should become very familiar with the step-by-step 1099 rules regardless of which state you live in. This is the only way you can be sure your business is in compliance with the state workers compensation laws in determining who is or isnt an employee. Here are some examples where you might think the person is exempt when in fact they should probably be included in coverage:
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Penalties For Not Having Workers Comp Insurance In New York
The penalties for noncompliance for workers compensation coverage in New York can be as high as $2,000 for every 10-day period without coverage. Because of this, by the time an employer receives their first penalty notice, the penalty may be more than $12,000.
A business has 30 days from the date of the initial penalty notice to request a review of the penalty. A business also has the opportunity to explain why there was a lapse in coverage and ask that the noncompliance penalty be reduced. This review could lead to the penalty being reduced or upheld depending on the decision of the New York State Workers Compensation Board.
Benefits: What Does Workers Comp Cover In New York
Remember the victims of the Triangle Shirtwaist Factory fire? As luck would have it, a New York judge struck down the states first the day before the fire. Families sued the factorys owners in civil court, and won, but the payout was paltry: about $75 per worker, or about three months wages.
Rising from the ash of the Triangle Shirtwaist Factory fire-turned-scandal, New Yorks pioneering workers compensation laws put an end to such lopsided, inhumane outcomes. Qualifying workers in the Empire State can expect timely, no-fault compensation that covers medical care , lost wages, and in the worst-case scenario a death benefit to the employees survivors.
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New York Workers Comp Cost Example
To understand how workers compensation premium is determined, lets look at an example. Assume an animal shelter has five dog handlers and one clerical employee. Using the table above, we gather the rate for each job classification:
- Dog handler rate: $1.23
- Clerk rate: 13 cents
The clerk faces considerably less risk of injury because he doesnt handle dogs that may bite or scratch, so the carrier charges a lower rate for the clerks workers compensation.
Next, lets assume the total payroll for the dog handlers is $120,000, and the clerks is $20,000.
Plug these numbers into the workers compensation premium equation and we get:
- Dog handler: x $1.23 = $1,476
- Clerk: x 13 cents = $26
Then, we add the premium estimates for both positions: $1,476 + $26 = $1,502
More often than not, this rate is further modified by the business EMR. The more claims a company has, the higher its EMR. If the business has no claims or fewer than the industry average, its EMR is lower than one, causing premiums to go down.
What Is An Independent Contractor
You may be surprised to learn that when it pertains to workers compensation the definition of an independent contractor is not the same as what the Internal Revenue Service says it is. In fact, it may vary depending on what state your business is in. Here are the criteria for determining independent 1099 contractors in Washington State:
In Washington State, there is a set of six rules used to determine whether a worker is considered an independent contractor or an employee under workers comp law, with an additional rule for construction workers. This test is titled RCW 51.08.195 and is known as the six-part test for determining if an independent contractor is exempt.
First and foremost, they must pass the Personal labor test which basically determines who calls the shots. If a person brings their own work crew and is responsible for directing their work then they are independent and you should continue the checklist of rules. On the other hand, if your business is responsible for directing the contractor or her workers they are considered employees and should be listed as such under your workers comp policy.
The second criterion in the test is whether the contractor brings more than common hand tools to complete the job under contract . Examples are landscapers, painters, and flooring installers: all use specialized tools therefore, they dont meet the requirements of this test and are not your employees under workers comp law.
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Find The Cheapest Workers Comp Insurance Quotes In Your Area
There are three factors you should clarify if you use 1099 workers in your business. First, you should understand exactly what an independent contractor is. Secondly, you should be aware of the specific criteria that defines who is and is not considered an employee under your states workers comp laws. Third, you should learn how to avoid misclassifying employees as contractors.
A Workers Compensation And Employers Liability Policy
There is no limit of liability in the Standard Policy for Part One Workers Compensation. The policy provides all benefits required by any workers compensation law of a state listed in Item 3.A. of the Information Page.
Note: Non-Subject Employees refers to those employees or employments which are not statutorily covered under the New York Workers Compensation Law. Examples of Non-Subject Employees include duly ordained, commissioned or licensed priests, ministers, or rabbis masters and members of crews of vessels operating on navigable waterways, longshore employees working on navigable waterways, railroad employees engaged in interstate commerce, and employees subject to the laws of other states.
The limit of liability under Part Two for Bodily Injury by Accident applies to all bodily injury arising out of any one accident.
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New York Workers Compensation Insurance Laws
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In almost every U.S. state, employers are required by law to carry workers compensation insurance if they have a certain number of employees. If youre a business owner in New York, you must carry workers comp insurance if you have at least one employee. Like most states, New York specifies a few employee types that are exempt from compulsory coverage.
Workers compensation is one of many small business insurance types all New York entrepreneurs should consider.
In this article, well go over who you need to cover, who is exempt, and possible penalties for non-compliance.
Who Regulates Ny Workers’ Comp
The law is regulated by the New York Workers Compensation Board, but they do not provide insurance coverage. All businesses must be able to show proof of a policy – otherwise known as a certificate of insurance – when getting business permits.
What happens if you don’t acquire coverage?
Non-compliance with the workers compensation laws can lead to hefty fines, criminal and civil convictions, and class D and E felony. Employers can obtain a workers’ compensation insurance policy from a variety of places including a private insurance carrier, the New York State Insurance Fund, or self-insurance, which is extremely rare.
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