Workers Compensation Insurance
Who needs it?
Any business with employees in NYS and many states is mandated to have Workers Compensation Insurance.
There are a few exceptions as follows;
- The business is owned by one individual…
- The business is a partnership…
- 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…
What’s it cover?
Workers Compensation insurance policies in NY State come in two parts. Part one covers the employer's statutory liabilities for any employees’ work-related injury or illness under workers compensation laws with no limit. This includes injuries that employees may sustain from workplace violence, terrorist attacks, and natural disasters as well as certain illnesses and occupational diseases contracted as a result of employment. Coverage is subject to the following terms and conditions.
- The insured’s time out of work must exceed 14 days in order to start receiving cash benefits
- The maximum benefit amount adjusts every July 1 and is based on the New York State Average Weekly Wage. 66% x average weekly wage x % of disability = weekly benefit
- All medical care directly related to the original injury or illness and recovery is covered
- The treating health care provider must be authorized by the Workers' Compensation Board, except in an emergency situation
- Diagnostic tests and examination must go through legally and properly organized diagnostic networks that are contracted with the State Insurance Fund
Part two covers lawsuits arising out of employees' work-related injuries that do not fall under the worker's compensation statute with a monetary limit. This part covers the Third party over actions, loss of consortium, dual capacity, and consequential bodily injury.
Coverage includes legal defense fees, settlements, damages or judgements.
Disability Insurance Requirements:
New York State disability benefits cover employees for an off-the-job accident, injury or illness and pay half of an employee's weekly wage and no more than $170 per week, for up to 26 weeks.
Effective 2018 in NYS, Paid Family Leave has been added to the NYS Disability policy and offers coverage for certain qualifying events such as caring for a relative, caring for newborn babies, and more. Read more here.