New York workers compensation insurance shields employers from financial liability for injuries employees sustain in the course of discharging their duties at work. Such injuries may cause disability or even death to the affected employee.
Workers comp coverage provides medical benefits and monetary reparations to injured workers for lost wages. In the unfortunate event of a death, the deceased employee’s dependents also receive survivor benefits.
A Bit of NY Workers Compensation Insurance History
The NYS workers compensation law took full effect in July of 1914. With the exception of only a few entities, this law makes it mandatory for all public and private employers, who have at least one employee, to provide coverage for their workers.
Workman’s Comp Today
In the state of New York, employers have basically three ways of meeting their workers’ compensation necessity:
– By employing the services of the New York State Insurance Fund (NYSIF)
– Securing insurance from a private insurance carrier or
– As a member of a self-insured trust or by self-insuring.
What happens if employers fail to obtain workers comp for employees?
Since New York State requires employers obtain workers compensation coverage for their employees, failure to do so constitutes a misdemeanor and may attract the following penalties and sanctions for the business owners:
1. For first offense, a $500 fine. This amount is incremental and may increase to up to $7,500 for other offenses committed thereafter within 5 years.
2. A $250 assessment for each incurred claim while still having no coverage. Furthermore, 15 percent of the amount awarded (up to a maximum of $5,000) may also be levied on top of the actual medical costs and compensation.
3. The Worker’s Compensation Board assesses a penalty charge of $2,000 for every 10-day period employer remains non-compliant.
4. A further $250 levy for each 10 day period the Board deems business owner in non-compliance with the law. Alternatively, a 2 percent fee of the employer’s payroll may be charged during the period of the employer’s non-compliance.
If as an entity the employer happens to be a corporation, the president/chief executive officer, treasurer and the secretary are all deemed personally liable for any compensation, medical care and all penalties for the injured employee. If a civil suit is brought forward by an injured employee to a court of law, such an employer is denied common law defenses.
The bottom line…don’t go without proper coverage. Give us a call today for a free estimate from our workers comp experts.