New York Workers’ Compensation

new york worker's compensation text overlaying image of the statue of liberty If you run a business and have employees, you’ll need to purchase New York workers’ compensation insurance. In fact, this type of insurance is a requirement in most states, including New York, with some exceptions. It helps pay your employees’ medical bills if they sustain an injury on the job. It also limits your liability for workplace accidents, is a requirement in most states, including New York, with some exceptions.

In New York, business owners can expect to pay, on average, $1.46 for every $100 of covered payroll. That means a business with a total annual payroll of $100,000 will pay approximately $1,460 per year for workers’ compensation insurance. Or around $121 a month. This is only a rough estimate. Since factors such as your location, the different rates for staffing types (laborers vs office workers), and your claims history can all have a significant impact on your rates.

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One of the biggest factors in determining your rates for workers’ compensation insurance is your employees’ risk. Or the likelihood of a workplace injury occurring at your business. To assist insurers in determining risk exposure, and to get the best rates for your business, you can use a variety of workers’ compensation class codes. This is important because it costs more to insure certain employees. For example, office employees may have lower workers’ compensation costs than those who work outside of your office and face more risks.


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What’s Covered

If an employee sustains an injury on the job or becomes ill due to workplace conditions, workers’ compensation in New York will help them with their medical bills. The average weekly wage of the employee determines the workers’ compensation benefits. The amount depends on the type of claim.

In general, workers’ compensation in New York covers:

  • Accidents and injuries – If your employee needs medical attention, workers’ compensation will cover any medical expenses from a workplace injury.
  • Illness – If an employee becomes sick from exposure to allergens or other hazardous materials at work, they can also receive workers’ comp benefits to help pay for treatment.
  • Repetitive injury – It’s not just accidents that are covered: treatment for repetitive injuries, like carpal tunnel syndrome, are also covered by workers’ compensation. 
  • Ongoing care – If your employee still has medical needs as a direct result of their accident or illness, even after they return to work, they can get benefits for ongoing care. This includes additional doctor’s appointments or additional surgeries.

In addition, if their accident or illness results in permanent or temporary disability, your employee will receive weekly or lump sum payments. If they have a temporary disability, their injury prevents your employee from performing their job. But they can return to work as normal once they recover. If a doctor diagnoses them with an injury from which they will not fully recover, they have a permanent disability. 

These categories fall into the following classifications:

  1. Temporary total disability (TTD) – These payments will be made if your employee is not able to work at all while recuperating.
  2. Temporary partial disability (TPD) – TPD payments will be made if your employee can still work, but only with certain limitations, such as needing to perform lighter duties or work fewer hours. If your company does not provide work that meets these requirements, the employee may still be eligible for these payments.
  3. Permanent total disability (PTD) – Employees who are unable to work due to an accident or illness, even after they have recovered as much as they are likely to, will be eligible for PTD payments.
  4. Permanent partial disability (PPD) – Employees who have permanent difficulties but can work with them will be eligible for PPD.


New York’s Workers’ Compensation Death Benefits

Dependents of workers who pass away as a result of a work injury or illness qualify for workers’ compensation death benefits.

In New York, spouses and minor children are primary dependents. Your employee’s surviving spouse will usually receive benefits for the rest of their life, unless they remarry. If they do remarry, they will receive a lump sum equal to two years of benefits. 

When there are no children, the spouse will receive 66.67% of the worker’s average weekly wage up to the statutory maximum. If there are children, the rate remains the same except the children and the spouse will each receive 36.6% of the weekly rate. And the remaining 30% will be split equally among the children. Children’s benefits end when they reach the age of 18, or 23 if they are full-time students. If there isn’t a surviving spouse or any surviving children, benefits can be paid to the deceased worker’s estate.

New York provides assistance for funeral expenses as part of workers’ compensation death benefits. The amount of funeral expense benefits varies depending on where in the state the deceased worked. For example, New York assists with funeral expenses up to $12,500 in Bronx, Kings, Nassau, New York, Queens, Richmond, Rockland, and Westchester counties.


New York’s Workers’ Compensation Laws

Employers in New York have to carry workers’ compensation insurance for their employees.

According to state law, an employer is only exempt from this requirement in very limited circumstances. The following are the only situations in which you, as an employer, are not required to provide coverage:

  • If you are self-employed with no employees, unpaid volunteers, or subcontractors
  • If your business is a partnership or corporation with no employees
  • If one or two people own all of the stock and offices and have no additional employees

Even if you’re exempt, having worker’s compensation is still a good idea. If you sustain and injury on the job and do not have workers’ compensation, you might have to pay for expensive medical bills out-of-pocket. Because your personal health insurance might not cover work-related injuries in their entirety. In addition, health insurance will not offer any assistance for lost wages while you are unable to work, which workers’ comp will. 


How to Buy Workers’ Compensation Insurance

In most cases, you can obtain workers’ compensation coverage from a private commercial insurance company. EZ provides a simple online application for New York businesses to compare quotes from top insurance carriers. As well as licensed agents with insurance expertise who can help you choose the best carrier and policy for your business.

If your company’s high-risk status makes it impossible to obtain workers’ compensation insurance through private insurance. You can get coverage from the state fund. The New York State Insurance Fund is a state fund that competes with private carriers and guarantees coverage. Even for businesses that have been declined coverage elsewhere. Many new small businesses purchase this coverage until they have a track record that will allow them to apply for commercial insurance.

If you meet certain criteria and submit an application, you also have the option to self-insure. This means you will pay your workers’ compensation claims out-of-pocket as they arise. Instead of paying a premium and submitting claims to an insurance company. To qualify, you have to prove you can afford to pay for any potential claims out-of-pocket.

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How to Get the Most Savings

The majority of the cost of workers’ compensation comes from factors beyond your control. However, there are still ways to save. Implementing a safety program is a great way to reduce workplace injuries and claims, which will lower your premiums. So regardless of your industry, it is important to have safety and standard operating procedures in place. Employees who have safety training are less vulnerable to injuries, lowering your workers’ compensation costs.

It is also a good idea to regularly review your claims history. Evaluating your claims history on a regular basis can help you identify and correct patterns. You might discover that certain aspects of your business operations are frequently causing claims. This allows you to adjust the operation to make it safer. You can also save money by keeping an eye on potentially dangerous operations.

Correctly classifying your employees is one of the most effective ways to save money. When you apply for your workers’ compensation policy, you will classify each of your employees depending on their job’s risk. And this risk classification influences the cost of your workers’ compensation. For example, you might pay less to insure an office worker than you would a manual laborer. It’s also important to correctly classify your employees because you may receive a fine if you fail to do so.

Begin a free online application today to compare workers’ compensation insurance quotes for your small business from leading U.S. insurers. EZ’s agents specialize in insurance for a wide range of small businesses. Additionally, working with our agents can save you hundreds of dollars a year on coverage.


New York Workers’ Compensation FAQs

  • Are you required to have workers’ compensation insurance in New York?

Almost all employers must have workers’ comp insurance. Failure to obtain coverage for five or fewer employees is a misdemeanor offense punishable by a fine ranging from $1,000 to $5,000. Failure to obtain coverage for more than five employees is a felony punishable by a fine ranging from $5,000 to $50,000. If you fail to obtain coverage again within five years of your first offense, you will face fines between $10,000 and $50,000, plus other penalties.

  • How do workers’ compensation settlements work in New York?

In New York, insurance companies and injured workers can reach two types of workers’ compensation settlements:

Stipulation agreement – In this case, the injured worker and the insurance company agree on the degree of disability and the amount of benefits the worker will require. The employee will receive benefits on a regular basis. However, if their condition worsens over time, the stipulation agreement can be modified.

Section 32 agreement – Both parties can agree to close the claim in exchange for a lump sum payment in what’s known as a Section 32 settlement. This type of settlement is final once approved by the New York Workers’ Compensation Board, and once it is final, the injured worker no longer has the right to modify the claim.

  • What is the statute of limitations in New York?

In New York, the statute of limitations for workers’ compensation is two years from the date of the injury, or the date the claimant should have reasonably become aware of a work-related illness. 

Work-related hearing loss has a slightly different statute of limitations. In that case, a worker must wait 90 days after the loss to file a claim.


 Why Use EZ

If you’re looking for workers’ compensation insurance, come to EZ. We pride ourselves on doing everything we can to give you an easy and stress-free shopping experience. We give our customers our full attention and offer fully personalized service and fast results. As soon as you fill out our form, you will receive free quotes from one of our agents, who will understand your needs right from the start. We want to ensure that you get the best coverage for the best price. Our services are completely free so check out your quotes today!

If you still have questions, feel free to give us a call at 877-670-3538. You will speak with a local insurance agent who can answer all of your questions, and help you find the worker’s compensation policy that works best for your business.

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About The Author:
Cassandra Love

With over a decade of helpful content experience Cassandra has dedicated her career to making sure people have access to relevant, easy to understand, and valuable information. After realizing a huge knowledge gap Cassandra spent years researching and working with health insurance companies to create accessible guides and articles to walk anyone through every aspect of the insurance process.

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