Safety in the workplace is a concern for both employees and business owners alike. In the past, workers would have been forced to pay massive out-of-pocket fees if they had become injured while on the job. This proved to be financially crippling for many. Beginning in 1914, a policy commonly known as workers compensation came into effect. New York State provides a package that is simply known as NYSIF Workers Compensation. This is a state-wide agency which is available to all public and private businesses. It is also the largest carrier of this type of insurance. What are some of the main features of this policy and why is such compensation considered mandatory within many environments? These two questions merit additional attention.
This type of insurance is intended to provide the employee with financial contributions towards medical and legal bills associated with an on-the-job injury or accident. Death benefits are also offered to any noted dependants. This tends to be the most common definition of NYSIF Workers Compensation. It is nonetheless pivotal to note that the employer is also protected within such a policy. Through the payment of regular compensation contributions, the company will not will not be held legally liable for work-related accidents, injuries or deaths. Of course, stipulations apply and these will tend to vary depending upon the specific situation or claim. This form of protection can be seen as an affordable and yet comprehensive alternative to private carriers or self-insured plans.
Another advantage of the NYSIF Workers Compensation Fund is that a broad range of roles are included within its coverage. Some of these positions include:
Thus, it is clear to see that a wide spectrum of positions can benefit from this programme. This may not always be the case with private insurers.
Any enterprise that employs more than one individual with the intention of making a profit are required to have some form of compensation. However, there are exemptions to this rule. Some examples of this can be seen below:
Out-of-state employers as well as minors are often not required to apply for NYSIF Workers Compensation.
Another demographic to address refers to those individuals who are managing partners or sole proprietors. In this event, workers compensation is not considered mandatory. However, they could still opt for this plan. They may also select to utilise a private insurer. While not necessarily required by law, this form of protection will provide security and stability.
It is considered to be a crime in New York State to not provide an adequate workers compensation plan to employees (assuming that the criteria above have been met). There company in question may also be subject to sanctions imposed by the Workers Compensation Board (WCB). Even if the company is considered to be a corporation, the treasurer, secretary and president are liable for any damages caused by an injury on while on the job. These include medical expenses and financial penalties. Finally, the company will no longer be privileged to enjoy a state-appointed lawyer in the event that a case is brought to court. There can be other penalties which may apply under unique circumstances. It is recommended to contact the Workers Compensation Board for further details.
A self-insurance policy can be an alternative to standard NYSIF Workers Compensation. However, this category is not without its risks. We should first understand that a company which opts for this choice is considered to be a "trust" in some ways. The implication here is that each member of this group is responsible (financially and otherwise) for the losses of a specific employee. This can prove to be quite challenging should a death or major accident result in a lengthy litigation process.
Switching from this plan to a private insurer or to a state-approved compensation fund can also be difficult. The process is lengthy and there are even occasions when penalties may be accrued by all members. Not only would this prove to be financially challenging, but such actions may very well risk the ability of an enterprise to borrow money for future requirements.
As with many insurance policies, there are some notable metrics that will be taken into account before a plan is approved. Although these could vary from business to business, the primary concerns are:
Additional charges will include an assessment fee, natural disaster premiums and more recently, a terrorism premium. These are calculated and added to the final fee that must be paid by the company. It is therefore always wise to choose a competitive plan.
It is always possible to request a NYSIF Workers Compensation quotation to appreciate the benefits that may be offered. This can be performed via a proprietary eQuote system found here. Some information should be available to expedite the process. These details include:
It is important to appreciate the benefits that are offered by this unique compensation plan. Still, most owners should make use of the wealth of resources that are available online. Should further clarification be required, the best option is to consult with a qualified representative or to visit the official NYSIF website.