www.WCB.State.NY.US to download the Employers’ Handbook, a comprehensive resource for businesspeople about workers’ compensation.
Who Doesn't Need to be Covered:
The law may exempt licensed real estate and insurance agents, and media salespeople, in certain contractual relationships. There are few other exceptions to the law.
Business owners can always include themselves on a policy. They can sometimes exclude themselves from coverage in sole proprietorships, or partnerships (LLC, LLP, PLLC, PLLP or RLLP), or one- and two person
corporations where they own all the stock and hold all corporate offices.
Who Needs to Be Covered:
1. Workers in all for-profit businesses.
2. Domestic workers, sitters, companions and live-in maids employed 40 hours per week in a residence.
3. Farm workers whose employer paid $1,200 or more for farm labor in the
preceding calendar year.
4. Most workers compensated by a nonprofit organization.
5. Any other worker the Workers’ Compensation Board determines is an
employee.
Independent Contractors:
Workers under your direct control are probably considered your employees for
workers’ compensation purposes, regardless of their tax status. There is a
perception that so-called independent contractors do not need workers’
compensation insurance coverage, and that is often false. A worker’s tax status
does not determine if workers’ compensation insurance is required; you may need coverage even for 1099 employees.
Why Comply with the Law?
√ There’s a $2,000 penalty for every 10 days without insurance, and penalties for misrepresenting payroll, employees, and record-keeping failures.
√ Not carrying workers’ compensation insurance is a felony (more than five employees), or a misdemeanor.
√ The Board actively pursues scofflaws, and has issued 2,500 stop-work orders.
√ People and businesses who are penalized cannot win public work jobs.
√ Business owners must pay lost wages and medical care for uninsured workers. Permanent total disability and death benefits are not capped.
√ Employees generally can’t sue you for a work-related injury or illness when you’re insured.
Insurers notify the Board when they write, modify or cancel insurance. If coverage is canceled without a replacement policy, the Board will contact you. Your insurance status is public information, available at the Board’s web site.
Obtaining Insurance:
√ Private Insurance. Hundreds of private insurance carriers are authorized to write workers’ compensation insurance policies in New York.
√ State Insurance Fund. The New York State Insurance Fund, a quasi-public carrier, also writes workers’ compensation insurance. Visit www.NYSIF.com.
√ Individual Self-Insurance. Large employers can set aside reserves for self-insurance, in a formal, regulated process. Call the Board’s Self-Insurance office (518-402-0247).
√ Group Self-Insurance. Joining a group selfinsurance program may be a viable option. Contact Self-Insurance (518-402-0247) for a list of authorized groups.
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