New York workers comp law requires that all employers obtain and continuously keep in effect workers compensation coverage for all employees. According to Section 51 of the Workers’ Compensation Law, as an employer you must post a Form Notice of Compliance – Workers’ Compensation Law (C-105). Most states use the NCCI class codes. However, the governing authority for workers comp classifications in New York is the New York Compensation Insurance Rating Board (NYCIRB).
How do the workers comp class codes affect your New York business? They determine premium rates. They also affect the amount of wages you’ll be paying out to your employees. The Codes form part of the compensation pricing system.
Each code comes with its own rate for calculating the premium of a policy. Determining and applying the proper workers compensation code will directly impact how much premium you will pay as an employer. If you properly classify your business, you’ll save thousands of dollars when making workers comp premium payments.
You pay the price for breaching the law. Workers compensation class codes are basically a compilation of job definitions designed to identify different workplace exposures. You can verify the accuracy of the codes used on your policy through a work comp code review. Each specific job classification is assigned a four-digit number, which is then used throughout the workers compensation system.
How does not having compensation affect your business? It exposes you to law suits, and you risk hefty fines. Here’s a sample of what you may end up paying:
· Not carrying coverage is a criminal offense. If you have 5 or less employees, and fail to get coverage within 12 months, you’ll be fined $1000 – $5000. If you have more than 5 employees, this goes up to $5000 – $50000.
· In case it isn’t your first time getting caught without workers’ comp, you’ll be looking at a class D felony with a fine between $10,000 and $50,000.
· Misrepresentation (inaccurate record of your employees’ wages, classifications and workplace injuries) is a civil offense. It is subject to a fine of $2,000 for every 10 days of noncompliance or twice the cost of compensation.
In addition, when you end up in court for failing to secure coverage, you’ll be held responsible for all legal expenses. Moreover, a judge will probably find you liable for the medical and wage replacement expenses of your employees.
Protect your business from incurring all these costs. You can fulfill your responsibility by purchasing insurance coverage through an insurance carrier or getting authorization from the Board to be self-insured.
Here at Enforce Coverage Group, we offer free policy reviews for existing policies so you’ll know whether you are paying the best price for your coverage. We also offer policy quotes for new businesses or companies just moving into New York state, Pennsylvania, New Jersey or Connecticut.
Give us a call today to get started or fill out our free quote request form here.