NY Workers Comp majority Ownership Interest- Multiple Companies on Same Policy

Ed WinslowWorkers Comp Tips0 Comments

Multiple Companies on Same Policy

In  the NY workers Comp employers liability manual the term ” Majority Ownership Interest ” comes into play when an existing Entity ; which can be and individual, partnership, joint venture, corporation , association, LLC, or other entity; seeks to have more than one company on the same Workers Compensation Policy. Many employers do not realize that if the majority of issued voting stock or owners/ partners percentage of ownership is more than 50% then two separate entities must be covered on the same workers comp policy.

To many NY State business owners this can alleviate the difficulty in trying to find Workers Comp  coverage for a start up company with no prior experience.  It also allows safe companies with a favorable Experience Mod to continue getting a good price for that start up venture or newly purchased company. But is  also dis-allows owners to run and hide from a poor experience modification. Since the 2008 workers Comp reform several businesses that have multiple entities covered under one NY State Workers Comp Policy have received letters fro the Workers Comp Board asking them to show the percentage of ownership of the different companies. The State will ask the business to fill out an ERM-14 form.

If you are unsure of the Comp laws or need help finding coverage for a new company contact Enforce Coverage Group for help at 212-947-4298.

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