The New York State Workers’ Compensation Law took effect on July 1, 1914. With few exceptions, private and public employers with at least one employee must carry worker’s comp coverage. Failure to provide coverage is a misdemeanor and may carry sanctions imposed by the Workers’ Compensation Board. This can be a penalty of $2000 per 10 day period of noncompliance. The employer would also be liable for any medical costs arising from a job related injury or accident.
Workers’ compensation Insurance covers the following:
- Medical services needed to treat job related injuries or illness
- Temporary disability payments to the employee to help cover lost wages
- Permanent disability payments to the employee to compensate for permanent effects of the injury
- A death benefit for the employee’s survivors in the case of a fatal injury
- Legal representation for the employer by the insurance carrier
The employer must pay for the the cost of workers’ compensation coverage. It is illegal to require employees to pay any part of the costs of workers’ compensation premium or for medical costs arising from injuries.
The most important benefit for the employer, even more important than the legal representation provided, is that this coverage will prevent an employee for suing you for damages due to an on the job injury. Without this coverage, the employer could be held liable. Medical costs arising from a severe injury can be hundreds of thousands of dollars. This could destroy a company by wiping out all of their assets.
There are over 200 companies providing workers’ compensation coverage. The premiums and coverage among these companies can vary greatly among these carriers and also for different industries. It is best to let an experienced broker like Berkely Brokerage Corp. find the company and the policy that is best for your business. Let us help protect your business by providing this very important form of business insurance.
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