Workers’ Compensation Insurance NY: Everything You Need to Know

Workers’ compensation insurance NY covers medical costs as well as lost wages for injuries related to work. This program is mandatory in NY and all the other states.

Both employers and workers will find workers’ compensation NY beneficial. Workers who sustained work-related injuries can get covered for medical care financial benefits.

Three Major Reasons for Workers’ Compensation Insurance NY

  • It’s a requirement by the state law
  • It covers partial lost wages and medical expenses for an injured worker
  • Most of the policies entail employer’s liability insurance that protects employers from lawsuits connected to workplace injuries. When employees agree to receive benefits from workers’ compensation, they normally agree that they won’t sue their employees.

Who Needs Workers’ Compensation Insurance NY?

In New York, employers should carry workers’ compensation for their employees. For the most part, the state law requires all employers to undertake this type of insurance except in a few situations, such as:

  • If one individual owns a business, which means there are no leased employees, part-time employees, subcontractors, borrowed employees, or unpaid volunteers.
  • If the organization is a corporation or partnership, but with no employees
  • If one or two individuals own a business and those individuals own all offices and stock and there are no extra employees.

Employers are also required to post in a conspicuous place a notice that states their workers’ compensation insurance NY. The notice must contain the policy number of the employer and the name, phone number and address of the insurance agency.

Is Workers’ Compensation Insurance Mandatory for New York Part-Time Employees?

Many people who receive wages after doing a job are regarded as employees and are thus, supposed to benefit from workers’ comp. The NYS law classifies leased employees, day labor, part-time employees, subcontractors, and unpaid volunteers (this includes family members) as employees who qualify for workers’ compensation insurance NY.

Only an independent contractor can be exempted according to the following criteria:

  • The contractor doesn’t receive directions from the employer to perform a job.
  • The contractor performs duties that the business doesn’t normally do on a regular basis.
  • The contractor has an independent occupation, business, or trade that’s connected to the service being offered.

Do the Self-Employed Need Workers’ Compensation?

As a self-employed person or sole trader, you don’t need this type of insurance if you haven’t employed anyone.

Can Employers without Workers Compensation Insurance NY Face Penalties?

The New York State Workers’ Compensation Board is responsible for enforcing the requirements for workers’ comp in the state. Not following the requirements can lead to severe criminal and civil penalties.

  • Failure to secure the insurance coverage for five or fewer workers within 12 months is a misdemeanor that can attract a fine of anywhere between $1,000 and $5,000. If an employer fails to secure coverage for over five employees, it translates into a felony that can attract a fine of $5,000 to $50,000. A subsequent conviction within a period of five years of not securing coverage is punishable by $10,000 to $50,000 in fines.
  • Not making a provision for compensation for at least 10 days may cause the board to take civil action against the employer. The board may charge a penalty of up to $2,000 for every 10-day period of not complying with the regulations or a sum amounting to up to twice the compensation cost for that period.
  • The employer’s misinterpretation of the wages, number of employees, accidents and classification is subject to both civil and criminal persecution. Businesses are supposed to keep accurate records. Thus, if an employer deliberately conceals the number of employees, payroll, employee duties and other information, it may attract a fine of $2,000 for each ten-day period of not complying or twice the compensation cost. If a criminal conviction follows these charges, the fine may be anywhere between $1,000 and $50,000.
  • Not maintaining an accurate payroll is a criminal offense too. If the employer fails to keep accurate records regarding employee classifications and information related to wages and accidents, it may be handled as a misdemeanor and attract a fine of $5,000 to $10,000. If the employer has a past conviction on this basis, then it becomes a felony and the fine rises to anywhere between $10,000 and $25,000. These offenses attract a civil penalty of $1,000 per ten-day period of not complying or even twice the compensation amount for the payroll when the failure happened.

Meeting Workers’ Compensation Requirements in New York

It’s the duty of the employee to inform the supervisor or employer when an accident or injury has occurred. An injured employee should get treatment from a healthcare facility approved by the Workers’ Compensation Board except if it’s an emergency treatment.

Generally, an employer can’t direct workers to particular healthcare providers unless of course, the employer takes part in a Preferred Provider Program. While the employer might suggest a healthcare provider, workers must be informed about their rights to choose a provider they want.

When an employer knows about the injury that the workers’ compensation should cover, the former should get in touch with its insurer throughout the claim process.

Minor injuries that require fewer first aid treatments, causing the employee to go back to work after a day or less, are some of the situations where the employer can provide direct compensation. Other injuries should be reported to the insurance provider and the Board within 10 days.

The Death benefits Associated with Workers’ Compensation Insurance NY

When an employee dies because of work-related illness or injury, his or her dependents qualify to receive the death benefits associated with workers’ compensation.

In New York, a spouse and minor children are regarded as primary dependents. A surviving spouse may typically receive benefits for the rest of his or her life except if they remarry.

If a spouse decides to remarry, he or she may be given a lump sum equivalent to two years of the benefits. If children are not there, the spouse gets 66.67 percent of the average weekly wage.

In case of surviving children, the rate is the same but 36.6 percent of the weekly wage goes to the spouse and the remaining 30 percent is split equally among children.

The benefits for children end when they attain 18 years of age, or 23 years if they’re students.

The bereaved family can also receive up to $6,000 as funeral expenses as part of the death benefits of workers’ compensation.

As you can see, workers’ compensation is important to both employers and employees.

Call Pamphile Insurance Brokerage, LLC today at (516) 323-8558, for consultation on workers’ compensation in NY as well as NJ.

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