Workers Comp Coverage for Contractors in
NY,NJ,CT Market Overview
If you are an Established contractor in NY, NJ and CT and survived the last economic downturn Congratulations. You most likely have 5 plus employees and have been able obtain Contractors Workers Comp insurance easily because you make it a priority to manage your back office and keep the policies in force. You know how hard it can be to get General liability and Contractors Workers Comp.
For those start up contractors or those that let their policies laps and are now trying to get back in business the road to obtaining Workers Comp can be very a rocky. NY has the State Insurance Fund for those who cannot obtain Workers Comp Insurance in the private Market. New Jersey and Connecticut have a pool of carriers or an assigned risk. The pool means higher rates. The NY State Fund usually means some back office frustration for a small Contractors Workers Comp. They typically require quarterly audits to determine the correct payrolls. If money is owed to the NY State Fund they do not have to offer a policy until that past debt is paid plus interest. This has left many start up, non renewed or lapsed policies holders in the dust, frustrated and confused. In most cases contractors cannot start work until these policies are in place or else face steep fines and penalties from the Workers Comp Board.
Contractors Workers Comp seekers if you find you are in this situation you need to do the following:
1. Communicate with the State Fund and determine how much is owed and for what.
2. Try to arrange a payment plan to get current with The State Fund
3. Have an action plan in place to keep your policy current once obtained. This means being involved in the classification of employees, audit and claims. Your goal is to get 3-5 years of continuous coverage in place in order to be more attractive to better priced carriers in the private market.
Carriers today require Workers Comp policies for Contractors to have payroll of at least $100,000 in the predominant class, an Experience Mod factor and 3-5 years of loss history. If you are having trouble getting a policy or would like better rates on your current Workers Comp Policy please Contact us.