Jump ahead to learn:
- Is New York Workers’ Compensation insurance required?
- How does NY Workers’ Compensation work?
- New York Workers’ Comp coverage
- NY State Workers’ Comp death benefits
- How much is New York State Workers’ Compensation?
- What if you don’t have NY Workers’ Compensation insurance?
- Who is exempt from NY Workers’ Comp?
- How NEXT helps New York small business owners
Is New York Workers’ Compensation insurance required?
According to the New York State Workers’ Compensation Board, virtually all New York employers must carry workers’ compensation insurance. This rule applies to full-time and part-time employees, as well as family members employed by the company and regularly-scheduled domestic workers.
Business owners can comply with the law by either:
- Buying workers’ compensation coverage from a private insurance company such as NEXT.
- Enrolling through the New York State Insurance Fund (NYSIF).
- Creating a self-insured workers’ compensation program for their employees.
How does NY Workers’ Compensation work?
Workers’ compensation insurance is designed to support employees who suffer work-related injuries or illnesses. You, the business owner, can also be covered if you have owner’s coverage with your policy.
Typically, NY workers’ compensation insurance includes coverage for:
- Emergency treatment and medical care expenses.
- Lost wages income benefits.
- Retraining if you can no longer do your job.
- Permanent injury benefits.
- Death benefits and survivor benefits.
A key feature of New York’s workers’ compensation system is its no-fault nature. This means that employees do not need to prove fault to receive benefits.
If an employee gets injured at work, they should report it to their employer and file a claim with the NYS Workers’ Compensation Board.
If you hold a workers’ comp policy with NEXT we strive to resolve every claim quickly. Learn more about our claims process and how our claims advocates will work with you after an employee illness or injury.
New York Workers’ Comp coverage
In New York, employees are entitled to lost wage benefits if their injury or illness prevents them from working for more than seven days or reduces their hours. These benefits are paid whether they’re totally or partially disabled.
Payments should start within 18 days of the workplace injury or 10 days after the business owner is made aware of the injury, depending on which occurs later. If you continue to pay your employee’s wages, your employee may not receive workers’ comp benefits from the insurance carrier; instead, you’ll be reimbursed for the wages.
Two factors help calculate disability benefits, including:
- Two-thirds of the difference between your current earnings and your pre-injury average weekly wage.
- The degree of disability determined by medical reports. Generally, the degrees of disability range from total (100%), marked (75%), moderate (50%), or mild (25%) and various levels in between. Anything less than a total disability is called a partial disability.
Weekly workers’ compensation benefits have minimum and maximum limits that adjust periodically, with a minimum of $275 and $325.
There are four disability classifications in New York State:
- Temporary total disability. Employees cannot work and earn wages, but only on a temporary basis. They’re entitled to the full allowable wage benefit.
- Temporary partial disability. Employees have temporarily lost some ability to work and earn full wages.
- Permanent total disability. The employee’s wage-earning capacity is permanently and totally lost. There is no limit on the number of weeks payable with a permanent disability.
- Permanent partial disability. Part of the employee’s wage-earning capacity has been permanently lost.
NY State Workers’ Comp death benefits
If an injured worker dies from a covered job injury or illness, their spouse and dependents are entitled to weekly payments. These death benefits amount to two-thirds of the deceased worker’s average weekly wage from the year prior to the accident, subject to some limits.
If there are no eligible survivors, the deceased worker’s parents or estate may receive a payment of $50,000.
Additionally, a workers’ compensation policy usually covers funeral or memorial expenses, capped at $12,500 in specific counties (Bronx, Kings, Nassau, New York, Queens, Richmond, Rockland, Suffolk and Westchester) and $10,500 in other counties across the state.
How much is New York State Workers’ Compensation?
Workers’ compensation costs vary across industries. Factors that can influence your annual or monthly price include:
- Your number of employees and the type of work they do.
- Your total payroll.
- Your insurance claims history.
- The location(s) where you do business.
You can use our workers’ compensation cost calculator to get an idea of pricing for a business like yours. But the best way to see exactly what you’ll pay for your business is to get a free instant quote from NEXT.
What if you don’t have NY Workers’ Compensation insurance?
Operating without workers’ compensation insurance in New York can have serious consequences. According to the Board, if you don’t provide your employees with workers’ compensation coverage, consequences can include:
- Substantial financial penalties.
- Misdemeanor charges.
- Felony charges.
- Time in jail.
Employers become responsible for all medical treatment expenses, rehabilitation costs, and lost wages for injured employees. Additionally, you may have to pay for legal representation to defend against a claim. Combined, these expenses can be financially devastating.
Noncompliance can result in penalties of up to $2,000 each 10-day period without coverage. By the time an employer receives their first penalty notice, the penalty may exceed $12,000. Various criminal and civil penalties range from $1,000–$50,000.
Who is exempt from NY Workers’ Comp?
In some states, some businesses and subsets of workers can qualify for a workers’ compensation exemption.
Certain individuals may be exempt from New York’s workers’ compensation requirements. These include:
- Sole proprietors: Business owners without employees can opt out of coverage, but may choose to voluntarily cover themselves.
- LLC members and partners: It’s also not required for one or two person-owned corporations.
- Nonprofit entities under IRS rules: The entity cannot have any compensated individuals except for teachers or clergy that provide services.
How NEXT helps New York small business owners
NEXT can give you a free workers’ compensation insurance quote in about 10 minutes. Buy affordable coverage online and instantly share a certificate of insurance (proof of insurance) at no extra cost.
You can manage your policy 24/7 via web or mobile app.
And if you have questions, our licensed, U.S.-based insurance professionals are available to help.
