New York Workers Compensation Insurance-Workmans Compensation

November 2008 New York changes how carriers and allowed rate your workers compensation insurance policy

For the first time in the history New York's workers compensation insurance rating system there is now a competitive market. What that means is carriers will have different prices instead of fixed rates like they did for the past 100 years. The old system the price was the price and that's what you paid now matter who you called. Now if you don't shop your current carrier especially if your with NYSIF or many of the old line carriers you could be paying 60% or more. I recently quoted a contractor that was with NYSIF, his company did siding installation and and sheet metal installation he he was paying over $70,000 a year based on a $170,000 annual payroll and for the same payroll and coverage I was able to get him approved for $15,539.00. Thats CRAZY savings. These new laws and rates took place in November 2008. If you have not had your workers compensation re quoted or your current agent has not made you aware of the changes in New Yorks workers compensation insurance rating system you need to contact us immediately your probably paying way to much.

New York Workers Compensation Rules

New York Workers Compensation

1. Does my New York business need workers compensation insurance?

New York law requires almost all employers operating in New York State to have workers' compensation insurance coverage for their employees.

2. In New York who can exempt themselves from Workers Compensation Insurance?

* A business that is owned by one individual with no employees, leased employees, borrowed employees, part-time employees or unpaid volunteers (including family members) and is not a corporation

* The business is a partnership under the laws of New York State, and there are no employees, leased employees, borrowed employees, part-time employees or unpaid volunteers (including family members)

* The business is a one or two person owned corporation, with those individuals owning all of the stock and holding all offices of the corporation, and there are no employees, leased employees, borrowed employees, part-time employees or unpaid volunteers (including family members). Specifically, if the corporation is owned by two people, each person must own at least one share of stock and between them own all the shares of stock in the corporation. In addition, they both must be corporate officers and between the two of them hold all the offices of the corporation

3. Does New York workers compensation law have specific requirements for subcontractors/contractors and sole proprietors?

General Contractors are not required to carry workers' compensation insurance. However, that does not relieve them of their obligations if any claims are files by their employees. General contractors can require sub-contractors to provide valid proof of workers' compensation insurance. Otherwise, general contractors become responsible for the sub-contractors employees with regard to any workers' compensation issues.

Sole proprietors, partners, and one/two person corporate officers with no employees are not required to carry workers' compensation insurance(although coverage may be obtained voluntarily)

Employee Leasing and Staffing Companies

Using a PEO or staffing company to obtain your workers compensation may be a good alternative to purchasing your own workers compensation policy. Leasing companies handle your payroll, w-2 forms, unemployment and workers compensation claims. In many cases the down payment required to obtain a new workers compensation policy is high and many new businesses cannot afford the down payment. Another advantage, based on my experience, is that you will never get audited because you pay as you go for your coverage. We represent numerous leasing and staffing companies who in many cases offer deep discounts on your workers compensation coverage that you will not find from standard workers compensation insurance carriers.

USL&H & The Jones Act

We have excellent workers compensation programs for these specialty risks requiring this endorsement. If you are unsure and want to read either the USL&H or Jones Act I have provided helpful links below for you convenience. I have found them to be the most detailed and good resources on the laws.

If you need a quote that requires this coverage

Click Here for a USL&H Quote

Click here for the complete USL&H Act, courtesy of Cornell University.
Click here for: USL&H & Jones Act Information
Defense Base Act Division of Longshore and Harbor Workers' Compensation

New York Workers Compensation

New York Workers Compensation Links

News and Legislative Updates
New York Workers Compensation Law
New York Workers Comp Board Releases
New York Workers Comp. Forms
New York Employer Resources
New York Employers' Rights and Responsibilities